The continued uncertainty on Wall Street has Gov. Linda Lingle's administration in a holding pattern when it comes to issuing about $600 million of bonds.

It has been waiting for more favorable market conditions since Sept. 23 when it pulled back on a bond issue because of turmoil in the aftermath of Lehman Brothers Holdings' bankruptcy and other financial market events.

"We are still on hold," said Scott Kami, state Financial Services Division administrator.

"We're just monitoring the markets."

The state had wanted to sell $300 million of tax-exempt general obligation bonds to finance work at public schools and the University of Hawai'i, along with another $300 million to refund outstanding bonds that were issued at higher rates. It also wants to sell $26 million of taxable bonds to help with the purchase of the Kukui Gardens housing project in Honolulu.

Bloomberg News estimates that municipal bond borrowers such as Hawai'i have delayed issuing at least $14 billion of bonds since mid-September.

David Joyner, head of the North Carolina Turnpike Authority, told Bloomberg the market has been virtually frozen.

"The cost of capital is beyond what we can afford at this moment," he said.

The same applies here, though the state is finding ways to push ahead with projects the bond issue would have financed. Lingle, in an editorial board meeting with The Advertiser earlier this month, said the state spends about $40 million a month on construction and that planned projects at the state's airports, harbors, schools and UH wouldn't be delayed because of the bond problem.

Lingle said state government has the ability under state law to use cash it has in banks, which is now just under $3 billion.

"The fact that we pulled back on our bond issue has zero impact on our capital improvement projects," Lingle said.

The state also should find a good market for its bonds once it goes to market, she said. Standard & Poor's has assigned an "AA" rating to the issue, just short of its top AAA rating.