The state Campaign Spending Commission is weighing whether to allow U.S. Rep. Neil Abercrombie to transfer nearly $1 million from his congressional campaign account to his state campaign for governor in 2010.

Barbara Wong, the commission's executive director, has recommended the commission not allow the transfer because the donations were collected under federal campaign finance law, not state law. But attorneys for the Hawai'i Democrat argue Abercrombie should be able to spend the excess funds on his state campaign.

Wong, who took a similar position in an interview with The Advertiser in November when Abercrombie was thinking about running for governor, said the commission has a difficult policy choice. Allowing Abercrombie to transfer the money could set a precedent for any future candidate to transfer money to a Hawai'i campaign, no matter where it was collected. The commission is expected to decide in early June.

"We remain hopeful that the commission will agree with our request and allow the transfer of federal campaign funds to the state campaign," said Bill Kaneko, an attorney and a spokesman for Abercrombie's campaign for governor.

"Hawai'i state law allows state office-holders to transfer excess campaign funds from an earlier campaign to a new committee. It does not explicitly prohibit federal candidates from doing the same thing, and we believe all candidates should be treated equally," Kaneko said. "Because our request is still pending before the Campaign Spending Commission, we will withhold further comments until a final decision is announced."

Under state campaign finance law, state candidates can move donations from state campaigns into other state campaigns but are prohibited from transferring the money to federal campaigns. It has been presumed, if never tested, that federal candidates are not allowed to shift federal money to their state campaigns.

Abercrombie raised the money for his re-election to Congress under federal guidelines, which have different individual and PAC donation limits than state law. State campaign finance law also has a limit on Mainland donations.

Federal law allows federal candidates to use excess campaign funds for office-related expenses, charitable donations, and contributions to political parties or candidates.

Excess campaign money cannot be diverted for purely personal use, but the Federal Election Commission has ruled in advisory opinions that it can be converted to state campaigns if permissible under state law.

An advisory opinion issued in 1997 also found that it is permissible for a congressman to offer refunds to donors and then solicit contributions for a governor's campaign.

Abercrombie's request shows how important fundraising is for the 2010 race, which could cost candidates $3 million to $5 million. Lt. Gov. James "Duke" Aiona, the Republican candidate for governor, has already raised $1.5 million.

Honolulu Mayor Mufi Hannemann, a potential challenger to Abercrombie in the Democratic primary, has $659,000 left over from his mayoral campaign in 2008 that he could convert to a governor's campaign.