Seeing an economy on the mend, a Board of Education committee approved a $1.4 billion proposed general fund budget yesterday for the upcoming fiscal year that would restore about $129 million in cuts and seek an additional $28 million for student bus transportation, nursing services and athletics.

"We’re just trying to get it (the budget) back to something that’s more appropriate," said Janis Akuna, chairwoman of the Committee on Budget and Fiscal Accountability.

Akuna added that though there are "green shoots" in the economy, money is still tight at schools and that the funding restorations requested will not cover all the cuts made over the last two years.

The budget includes $86 million to end teacher furlough days for good.

Teachers on 10-month contracts took six furlough days this school year, while 12-month teachers took 10, all on noninstructional days.

Last school year, students lost 17 instructional days to teacher furloughs as part of a cost-saving plan that drew the ire of parents.

"We are putting those (restored) monies into the schools," James Brese, DOE chief financial officer, said yesterday. "We’re restoring that funding, making sure that they don’t have to take furloughs in the coming biennium."

The committee’s proposed budget, which will go to the full board, also asks the next governor to consider $28 million in increased general fund appropriations for the Department of Education.

The bulk of that additional funding — $19.5 million — would go to student bus services to cover a projected shortfall for the fiscal year that begins July 1, 2011.

If the increased funding is not approved, the DOE warns, bus transportation that serves general- and special-education students (mainly in rural areas) could be reduced.

The additional funding would go to athletics salaries and equipment ($1.5 million) and skilled nursing services ($2 million), along with $5 million for lease payments on the procurement and implementation of a new financial management computer system.

"The things we have that are budget increases are the things we desperately need," Brese said.

Meanwhile, the committee also approved a proposed capital improvement budget that includes $200 million over two years to address backlogged repairs, $35 million for upgrades to science facilities, $30 million for electrical upgrades and $10 million for compliance and safety projects.

Also yesterday, the Board of Education moved forward with a plan to build a $140 million high school in Kihei, Maui.

The Legislature has appropriated planning funds for the project, which is designed to alleviate overcrowding at Maui and Baldwin high schools.

It is not yet clear when construction on the new campus would start, but the board committee approved a proposal that would have the state paying for the new school over 20 years in increments of less than $12 million annually.