U.S. Sen. Daniel K. Inouye said yesterday that another federal stimulus may be necessary if the nation's economy does not improve.

The $787 billion stimulus package, signed into law yesterday by President Obama, will bring Hawai'i $678 million in formula-based spending and upward of $2 billion when tax credits, Medicaid reimbursements and extended unemployment benefits are counted. Long-promised payments to Filipino World War II veterans were also authorized by the package.

Inouye, D-Hawai'i, privately briefed state House lawmakers yesterday on the stimulus package and plans to talk with the state Senate today before returning to Washington, D.C., on Friday.

The senator, the chairman of the Senate Appropriations Committee, said it would likely take six months to a year before it is known whether the stimulus package is working. He said another stimulus may be needed.

"That's discussion item No. 1 now in Washington," the senator told reporters at the state Capitol. "Some people are calling this bill the stimulus No. 1.

"If you listen to experts, they all suggest that if you are to really stem the tide, you would have to go deeper than this. And, I must say, to a certain degree I agree with that."

Obama called the bill the most sweeping economic recovery package in the nation's history.

"Now, I don't want to pretend that today marks the end of our economic problems," the president said. "Nor does it constitute all of what we're going to have to do to turn our economy around. But today does mark the beginning of the end — the beginning of what we need to do to create jobs for Americans scrambling in the wake of layoffs; the beginning of what we need to do to provide relief for families worried they won't be able to pay next month's bills; the beginning of the first steps to set our economy on a firmer foundation, paving the way to long-term growth and prosperity."

Obama said the stimulus package would save or create 3.5 million jobs over the next two years, including 15,000 in Hawai'i. Low-and middle-income workers would also receive tax relief — $400 for individuals and $800 for couples.

The Obama administration has not ruled out a second stimulus package.

Inouye, who was among the negotiators on the package, said Senate Democrats attempted to work with Republicans and agreed to tax cuts to help satisfy the GOP. Asked about Republican criticism that spending in the package will burden future generations, he said the alternative could be financial chaos.

"Well, it's true. But if you don't do anything it will be a chaos, a real chaos," he said. "And, hopefully, when you stop this crisis from getting worse, and people get back to work and start paying taxes, then we'll restore ourselves."

State House Vice Speaker Michael Magaoay, D-46th (Schofield, Mokule'ia, North Shore), said Inouye told lawmakers privately to make sure that Gov. Linda Lingle and lawmakers administer the federal stimulus money properly.

Magaoay, like other lawmakers, does not believe the stimulus will bring immediate help to the state's budget problems.

"Right now, my personal opinion is that the stimulus won't help us because we don't know when it's going to come in," he said. "To balance our budget, we have to take look at what we have and the cuts that we have to do. Hopefully, the cuts are scalpel, not machete cuts."

Magaoay said lawmakers need the governor to make suggestions on spending cuts before the next forecast by the state Council on Revenues in March. The House is working on its version of the budget and will send it over to the Senate in mid-March.

Lingle has told some lawmakers privately that she plans to release updated budget figures in early March, before the council's forecast.

Lingle, meanwhile, hopes to find out more about the stimulus package during her trip to Washington later this week for the winter meeting of the National Governors Association.

The Republican governor, along with other governors, will have the opportunity to meet with Obama, members of his Cabinet and congressional leaders. Lingle, who did not lobby for the stimulus package, is also expected to meet with Inouye and U.S. Sen. Daniel Akaka, D-Hawai'i.

Inouye, responding to questions from reporters yesterday, said he did not have any thoughts about the ceded lands case scheduled for arguments before the U.S. Supreme Court next week. The Lingle administration is appealing a Hawai'i Supreme Court ruling halting the sale of former crown lands until Native Hawaiian claims are resolved.

Inouye, however, said now might be the best opportunity to advance a Native Hawaiian federal recognition bill sponsored by Akaka. The bill would create a process for Hawaiians to form their own government, similar to those of American Indians and Alaska Natives.

Democrats have the majority in both the House and Senate and Obama supports the bill.

"If we can't do it now, we're going to have a hell of a time," the senator said. "But we're going to do our best."