State lawmakers, preparing for the most important weeks of the session, have completed work on hundreds of bills and will now meet in conference committees to iron out their differences.

The state House and Senate moved bills between chambers on Thursday at second crossover and are in the process of naming conferees. After the conference committees deliberate, the final versions of the bills will go back before the House and Senate for approval.

Lawmakers gave initial approval to an emergency spending plan to respond to recent storms across the state, along with tax credits for people who suffered property damage during the flooding.

In a surprise, the House pulled a bill at the last minute that would have provided a $50 million tax credit for a new motorsports complex at Kalaeloa. House leaders later explained the bill was killed because state Rep. Jerry Chang, D-2nd (Hilo), had a potential financial interest in the racetrack deal.

ISSUE WATCH

Education: Lawmakers have agreed to give public schools more money to handle the new student spending formula that takes effect next school year, although the exact amount will be decided by conferees. The formula, which bases school spending on student need rather than enrollment, has been criticized because it takes money away from some small and rural schools.

Lawmakers have said the new money is not a bailout of the schools that would lose under the formula but a recognition that schools need more money during the transition.

Affordable housing: The House Housing Committee held an information briefing on Wednesday that brought together government officials, developers and social-service advocates to brainstorm ways to put more affordable units on the market. The needs identified included more land, infrastructure, funding, political will and streamlined permitting.

Alternative energy: The future of the wholesale price cap on gasoline could be among the biggest decisions for conferees. The Senate has passed a bill that would suspend the cap but allow it to be brought back if gas prices stay high. The House has approved a bill to suspend and ultimately repeal the cap. Higher gas prices over the past few weeks, and the potential political impact of the cap on the upcoming elections, could be factors.

Tax relief: The leaders of the House and Senate finance committees have tentatively set aside money for tax relief but will not make a final decision until they work through the budget this week. The ideas in play include an increase in the standard income tax deduction and a tax credit for the working poor.

OVERHEARD

"This disaster, which unfolded day after day, week after week, has been particularly difficult on residents who have continually battled flood waters and mudslides, and on state and county workers and volunteers who have responded during the past month and a half."

— Gov. Linda Lingle, asking President Bush to declare a major disaster for Hawai'i in the wake of recent storms

COMING UP

Friday is the deadline for bills that involve constitutional amendments.

Have a tip for the Capitol bureau? Call 525-8070 or e-mail ddepledge@honoluluadvertiser.com or tshapiro@honoluluadvertiser.com

Compiled by Derrick DePledge and Treena Shapiro.