KAHULUI » The University of Hawaii Board of Regents approved yesterday a general fund spending request of more than $1.4 billion that reduces taxpayer-supported expenses by up to $30.6 million over the next two years.

The regents, meeting at Maui Community College, were warned that UH economists believe more cuts will be necessary to balance the state budget.

“;This is round one,”; UH President David McClain said. “;It doesn't end with what we just presented to you.”;

McClain, who is an economist, said the University of Hawaii Economic Research Organization believes the governor will have to ask departments to double their cuts to balance the state budget.

“;As we go forward, we fully expect either this fall in the governor's budget or in the spring when the Legislature meets, we will probably have to do more,”; McClain said.

The UH budget calls for about $9 million in actual cuts and transferring up to $21.6 million in expenses from the general fund to tuition, research and other special funds.

Taxpayer funds account for about half of UH spending. Tuition covers about 10 percent, and research grants and other contracts bring in about 28 percent. Total UH spending is about $1.6 billion a year, McClain said.

UH hopes to save $9 million across its 10 campuses by cutting electricity and other costs and freezing most hiring.

Gov. Linda Lingle had asked all state departments to propose cuts of between 10 to 20 percent of discretionary spending. She also asked public worker unions not to take raises this year. The current budget does not account for pay raises as the state and the university are still negotiating with the unions.

McClain said he believes the cuts will not hurt students, and no layoffs are planned so far. If more budget cuts are needed, he said, UH will have to do its share.

But Klaus Keil, chairman of the UH-Manoa Faculty Senate, said he is afraid additional cuts will hurt and could mean layoffs.

“;You can do this (budget cutting) only to a point,”; Keil said. “;We have more students that need to be taught.”;

UH enrollment systemwide is at a record 53,500 students.

“;We're a little different than other businesses in this economy,”; McClain said. “;Demand for our services is going up as the economy is going down.”;

McClain also emphasized that the university is going to continue spending on fixing aging buildings.

The capital improvements budget approved by the regents last month calls for about $277 million to repair and modernize existing buildings.

UH administrators estimate that there is a $351 million backlog of needed repairs which is growing at a rate of about $60 million a year.

The total CIP spending request is about $614 million, which includes $116 million for a new classroom building at UH-Manoa and $32 million for a new College of Hawaiian Language building at UH-Hilo.

The CIP budget is mostly paid by issuing bonds to be paid back over several years.

Lingle had asked for departments to increase construction spending as a way to stimulate the economy.

The UH budget now goes to the Governor's Office to be incorporated into the state budget that will be presented to the Legislature in January.

In other votes yesterday, the regents approved giving a Regent's Medal of Distinction to the late Winona Beamer and the establishment of the Barbara Cox Anthony Chair in Aging.

McClain also announced that UH Vice President for Administration Sam Callejo will retire at the end of the year.