Gov. Linda Lingle and key Maui lawmakers announced on Thursday a six-year proposal to spend $4.2 billion on state highways, including $578.9 million for Maui County, that would be paid for, in part, with a 10 cent per gallon gas tax increase, The Maui News reported today.

The "Highways Modernization Plan" is similar to infrastructure stimulus bills the Legislature passed last year to make long-awaited improvements to the state's harbors and airports. Proponents said the highways bill would generate employment and disposable income for state residents. It also includes three dozen Maui County projects, many of which have been shelved for years, such as widening Honoapiilani Highway in West Maui and the Kihei-Upcountry and Paia bypass roads.

The plan probably would not be implemented until 2011. Money to pay for the new highways and roadway improvements would come from raising the gas tax 59 percent from 17 cents to 27 cents per gallon, higher state vehicle registration fees, a hike in the vehicle weight tax and a higher rental vehicle surcharge tax. Overall, the increases would generate approximately $2 billion over six years.

State Department of Transportation Director Brennon Morioka said the higher gas tax would be the first significant increase since the mid-1990s. However, recognizing that the increases could further burden residents already struggling with a downward spiraling economy, he said the tax and fee increases would only take effect after Hawaii sustains two consecutive quarters of 1 percent job growth.

Morioka introduced the bill at the state Capitol with Senate and House of Representatives transportation chairmen Sen. J. Kalani English and Rep. Joe Souki, respectively, both of Maui.

Hawaii residents already pay the highest gas prices in the country, although English noted that the bill exempts Lanai and Molokai residents from the increases. Those small, isolated populations are already suffering the most from the economic downturn, said English, who represents residents of those islands as well as East Maui and Upcountry.

"There is going to be a lot of transparency with this bill," Souki said. "We are going to hold a lot of public hearings. And if they don't want the gas tax, then we'll shelve it."

However, Souki noted that the bill already appears to have broad support in the Legislature. These are projects that need to get done, and they need to be paid for somehow, he said.

English said he's been developing the highway bill since Lingle introduced $2.3 billion and $862 million spending plans, respectively, for the state's aging airports and harbors.

"It's been a bumpy road, but I think we've been able to bring everyone together," English said.

Obviously, congestion is an incredible problem, English and Morioka said. The bill is comprehensive and looks at relieving traffic in the most highly congested areas. English and Morioka said they anticipate smoother flowing highways could save the average motorist at least $600 a year and heavy vehicle drivers $3,300 in gasoline and vehicle maintenance.

Morioka said that while the state is waiting for the economy to improve enough to float the highway revenue bonds, the state Department of Transportation will devote $25 million toward project planning and design.

In the past, some projects, like the Paia bypass and Kihei-Upcountry road, have faced significant community opposition. People have worried that creating the roads will lead to overdevelopment.

However, English said it's important for the counties and state agencies to get involved with designating land use in the affected regions. That way, the new highways won't lead to urban sprawl, he said.

English said he also believes that a lot of the project opposition has dissipated over the years as drivers struggled with longer commutes and more traffic.

"This will create a lot of jobs, heavy construction jobs," English added. "We also have to look at it as part of an economic stimulus package needed to pull Hawaii out of its tailspin."

The highway plan involves 183 projects - 76 projects on Oahu for $1,905,033,000; 36 projects for Maui County for $578,940,000; 27 projects on the Big Island for $524,712,000 and 22 projects on Kauai for $263,410,000. There's another 22 statewide projects for $968,119,000.

Statewide, the projects include new lanes to decrease congestion on several major Oahu roadways, but also include protection of shorelines, replacement of rural bridges, reinforcement of rocky cliffs and pavement improvements on other islands.

Morioka said the plan would help save lives, cut travel times and save Hawaii residents money in the long run.

''It's about preserving and improving our special way of life here in Hawaii. It's about ensuring a quality of life that we're all hoping for, and it's about putting money back into the pockets of our families,'' Morioka said.

''It will be quite a stimulus for the economy,'' said Souki, who represents Wailuku, Waikapu and Waihee residents. ''We'll be putting people back to work, and at the same time improving safety.''

Lingle said it's important to take action soon.

"While it is important to be sensitive to the current financial situation of our families and businesses, we also need to plan for the future when the economy rebounds, and not just sit and wait for it to happen," Lingle said in a news release. "This idea of an economic trigger tied to future growth in the economy means that we can do both."

Lingle said the highway bill would be in addition to the current $1.5 billion highway budget and $500 million in the proposed federal economic stimulus bill.

Under the proposed bill, the state fuel tax would generate an estimated increase of $51 million. Vehicle weight taxes, currently set at three-fourths of a cent per pound for vehicles up to 4,000 pounds, would be raised to 2 cents per pound, generating an additional $68 million in annual revenues. Motor vehicle registration fees would also be increased from $25 per year to $45 per year, adding $23.3 million in annual revenues. And, the rental vehicle surcharge tax would go from $3 to $5 per day, creating an additional $32 million annually.

The average taxpayer would pay $170 more per year, according to the state.

The spending would have to be approved by the Democratic-controlled Legislature and could undergo several changes before adjournment in May.

MAUI COUNTY ROAD PROJECTS

The "Highways Modernization Plan" presented by Gov. Linda Lingle and state lawmakers calls for spending $4.2 billion on state highways over six years. Thirty-six projects worth $578.9 million are in the plan for Maui County. The major projects and dollar amounts include:

* Kihei-Upcountry road, $186.5 million

* Lahaina bypass, $175 million

* Shoreline protection projects (Honoapiilani Highway, Kahului Beach Road, North Kihei Road), $25 million

* Hana Highway widening from Kaahumanu Avenue to the planned airport access road, $8.5 million

* Puunene Avenue widening from Wakea Avenue to Kuihelani Highway, $5.53 million

* Kula Highway, Kaipoioi stream bridge rehabilitation, $5 million

* Kamehameha Highway V, Kaimiloloa stream bridge rehabilitation on Molokai, $5 million

* Honoapiilani Highway widening from Launiupoko Park to Maalaea, $4 million

* Paia bypass road, $3.12 million

Chris Hamilton can be reached at chamilton@mauinews.com. The Associated Press contributed to this story.