WAILUKU, Hawaii — Maui Mayor Charmaine Tavares has proposed a $561 million budget for 2008-09. That's a 2 percent increase over the current year.

Spending on county operations would actually climb 6 percent to 461 million dollars.

But capital improvement projects would receive just under 100 million dollars, or 12 percent less than the current budget.

Tavares says the lack of available State Revolving Fund loans was the critical factor in cutting capital spending.

Last year the loans provided around 20 million dollars for water and wastewater projects.