A tax-relief plan that could save low-income families as much as $1,568 a year was a highlight of Gov. Linda Lingle's State of the State address before legislators on Monday.

In addition to her tax relief proposal, which would put $285 million of an anticipated $574 million surplus back into the hands of taxpayers, Lingle offered to lawmakers 164 bills, including her suggestions on how to fix public schools, offer more affordable housing options and wean the Islands from their dependence on imported oil.

Lingle's bills are just a small fraction of the more than 2,500 bills lawmakers submitted before the Wednesday deadline. While many will never get a public hearing, some likely to see movement include a series of bills to help prepare the state for natural disasters by retrofitting emergency shelters and creating new ones, and ensuring pets would have emergency accommodations.

In addition, the Senate will consider a proposal to boost research and development programs by putting more money into the Cancer Research Center, an alternative to the $100 million Innovation Fund for research and development proposed in the House.

ISSUE WATCH

Education: The Lingle administration and the state Department of Education moved closer in their dispute over how much the DOE needs for repair and maintenance, and how much the administration believes the department already has available. While the sides remain more than $500 million apart, they were able to find $100 million for fixes.

Affordable housing: Some bills introduced last week would increase subsidies for low-income renters, as well as allow more people to qualify for assistance. The governor offered a proposal that would help some residents avoid homelessness by helping to pay for a security deposit and the first month's rent.

Tax relief: Lingle proposed using combination of a tax credit, a refund and adjustments to the tax brackets and standard deductions to provide tax relief. Other proposals include suspending the general excise tax on fuel and offering tax exemptions or refunds for food and medical services.

Alternative energy: Both parties introduced bills aimed at encouraging renewable energy resources, but public hearings have not been scheduled on the proposals.

OVERHEARD

"You can't have it all. Choices will have to be made, short-term and long-term."

— House Majority Leader Marcus Oshiro, D-39th (Wahiawa)

LINKS

* Read the state auditor's report on how the Department of Human Services is spending federal welfare money at www.state.hi.us/au ditor.

* Check out Poinography, a blog by Doug White in state Rep. Marilyn Lee's office, at poinography.com.

COMING UP

* The deadline for requests for grants and subsidies is Tuesday.

Have a tip for the Capitol Bureau? Call 525-8070 or write to ddepledge@honoluluadvertiser.com.

Today is Day 7 of the session. There are 53 days remaining in the session.

Reach Derrick DePledge at ddepledge@honoluluadvertiser.com and Treena Shapiro at tshapiro@honoluluadvertiser.com.