The state Senate passed its version of the two-year budget Thursday, restoring funding slashed by the House for some of Gov. Neil Abercrombie’s initiatives on early childhood education, cash incentives for entrepreneurs and information technology upgrades.

The Senate’s passage of the budget sets up negotiations with the House to reach a final version of the budget bill before the Legislature adjourns May 2.

Sen. David Ige, Senate Ways and Means Committee chairman, said the proposal was crafted on the basic principles of supporting core government services, encouraging economic development and improving government services.

"The committee was judicious in the allocation of the state’s limited resources," Ige (D, Pearl Harbor-Pearl City-Aiea) said in remarks on the chamber floor.

The Senate’s $24 billion budget draft — $11.9 billion in spending in fiscal year 2014 and $12.1 billion in fiscal year 2015 — is bigger than the governor’s and the House’s versions but reflects the upgraded forecast that the Council on Revenues released after House lawmakers had completed work. The higher figure also includes state Department of Hawaiian Home Lands trust fund money that was not part of the two earlier drafts.

In general fund spending, the Senate calls for $6 billion in fiscal year 2014 — compared with $5.9 billion by the House and $6.1 billion by the governor — and $6.2 billion in fiscal year 2015 — compared with $6 billion by the House and $6.29 billion by the governor.

The Senate agreed with Abercrombie and the House on the need to pay down the state’s $16 billion unfunded liability in the public worker health care fund, with $100 million in fiscal year 2014 and $100 million — $5 million less than the governor’s request — in fiscal year 2015.

The budget passed unanimously, with Sen. Sam Slom (R, Diamond Head-Kahala-Hawaii Kai) voting for it with reservations.

"The thrust of the budget is more spending, more debt and not lessening the burden on our residents," Slom said.

None of the proposals account for the tentative agreement reached last month between the state and the Hawaii State Teachers Association on a new four-year contract. The deal is to be voted on later this month. Ige said the Senate’s budget proposal is flexible enough to account for collective-bargaining increases while also ensuring that future liabilities are funded.