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MAKENA - Even before she starts promoting her package to deal with the state's fiscal crisis, Gov. Linda Lingle wants to get one thing straight: The state does not have a $1.8 billion deficit.

"We have a gap," she said, referring to the difference between the state's estimated revenue and its draft budget for the next two years. The state Constitution does not allow the government to run a tab.

The gap got a lot wider in the past three months, Lingle told about 150 members and guests of the Maui Contractors Association on Wednesday at the Maui Prince Hotel.

The Council on Revenues tells the governor how much she will have to spend. And, between Oct. 29 and Jan. 9, the council revised its forecast down by $700 million. The forecast is for the biennium.

Bank of Hawaii chief economist Paul Brewbaker, who is one of three members of the council, visited Maui last week and predicted more decline but also that he was pretty sure 2009 would be the bottom of the cycle.

"I'm not pretty sure about that," Lingle told the contractors, although she is certain Hawaii will come back. To help the process, she listed a number of spending programs that can go soon. "Hold our feet to the fire," she said.

The various projects are listed on state Web sites so that residents can check their progress. The governor told the contractors that if they notice a project is being held up for a county, state or federal permit, to raise the alarm.

"Not every department was excited about having this online," she deadpanned.

She said that as far back as 2006, her administration began looking at "improving the regulatory environment" and laying out plans for billions of dollars in capital spending.

Much of this was for self-supporting facilities, so no claim on the general fund was involved. Airports, commercial harbors and state highways support themselves from sources like rental fees and fuel taxes.

With the money already provided, all that was needed was authorization from the Legislature, which was obtained in 2007 for $2.6 billion for airport improvements, $618 million for harbors and $1.8 billion for highways. Overall, there are 1,500 projects.

"Not all of them are big projects," she said. On Maui, they range from $70,000 to replace windows at Baldwin High School to $25 million to widen Honoapiilani Highway in Lahaina south to Aholo Road.

In a very brief question-and-answer period - Lingle had to catch a plane - Tom Cook, finishing a term as the association's president, asked "how we assure our Hawaii contractors get those jobs."

Lingle acknowledged that in "overheated" periods in the past, Mainland firms and Mainland workers got much of the work in the islands, which she called "the tail wagging the dog."

Outside firms cannot be prevented from bidding, Lingle said, so the best thing local firms can do is use the online project list to remain alert to projects and bid for them.

Lingle also asked for support for her Recreational Renaissance program to provide money for the Department of Land and Natural Resources to upgrade and repair parks, small-boat harbors and similar facilities.

She said the problem with delays in upgrading state parks and small-boat harbors is that unlike the Department of Transportation, DLNR has never had a dedicated stream of funds; so when the department went to the Legislature for a portion of general fund money, it found itself competing with "dental care for the elderly."

She is requesting $240 million over five years for DLNR projects and to establish a stream of revenue for the department by imposing fees on tourists at some parks. (On Maui, those include Iao and Makena state parks.)

For DOT projects, she wants higher incomes (in taxes and fees), but would defer imposing them until job expansion shows at least 1 percent gains for two consecutive quarters. She said she would prefer to exempt Molokai and Lanai residents. (Very few DOT projects are slated for those islands.)

She also boosted her idea for a Hawaii Communications Commission to promote better broadband infrastructure and her Clean Energy Initiative.

"Nothing we did in Hawaii" caused the worldwide economic crisis, Lingle said, "but we have to deal with the impacts together. We're all in it together."

* Harry Eagar can be reached at heagar@mauinews.com.