HILO, Hawai'i — State Rep. Dwight Takamine, who for seven years was one of the most powerful people in state government as the House Finance chairman, has officially announced he will run for the state Senate.

Takamine, a Democrat, told supporters at a fundraiser in his hometown of Honoka'a Saturday that he will seek the District 1 Senate seat being vacated by state Sen. Lorraine Inouye. Inouye plans to run for mayor of the Big Island next year.

The Senate district includes Waimea, Hamakua, North Hilo and portions of South Hilo.

Much of the Senate district is familiar territory to Takamine, a lawyer who has represented Hamakua, North Hilo and North Kohala in the state House since 1984.

Ted Hong, another lawyer and former state chief labor negotiator for Gov. Linda Lingle, is expected to run for the same Senate seat as a Republican.

Hong, a Hilo resident, said yesterday he is "finalizing his plans" for the race.

"I certainly welcome his challenge, because Dwight Takamine has a long record that he should be held accountable for," Hong said. If the voters are unhappy with traffic jams or the condition of Big Island public schools, they should hold Takamine responsible because he held a position of power at the Legislature for many years, Hong said.

Hong is also a former Honolulu deputy prosecutor, and served as assistant corporation counsel for the Big Island under former Mayor Stephen Yamashiro.

Takamine was chairman of the Finance Committee, which controls the state's purse strings, from 1999 until he lost the position during the House reorganization in 2006. He is regarded as close to Hawai'i's labor unions, and served as chairman of the House Labor and Public Employment Committee from 1987 to 1992.

In a written statement issued yesterday, Takamine said, "I look forward to meeting and hearing the concerns of the people of the 1st senatorial district."

"I hope that the voters will consider the experience that I gained serving in the Legislature for the past 23 years and my ability to deal with the challenges and issues that will arise in the future for the people in the district and in our state," Takamine said in the statement.

Reach Kevin Dayton at kdayton@honoluluadvertiser.com.