Micah Kane, chairman of the state Department of Hawaiian Home Lands and close supporter of Gov. Linda Lingle, has been named as a new trustee of the Kamehameha Schools.

State Probate Judge Colleen Hirai yesterday selected the 40-year-old Kane to replace retired Adm. Robert Kihune, whose term expires at the end of the month. Kane's appointment is effective Sept. 1.

Kane, a 1987 graduate of Kamehameha Schools, was appointed from a list of finalists that included Hawaii Community Development Authority Executive Director Anthony Ching and former Kamehameha Schools executive and ex-DHHL Chairman Ray Soon.

The position pays about $90,000 a year.

"I'm very happy that Micah has been selected as a Kamehameha Schools trustee," Lingle said. "He has the skills and experience, combined with the heart and compassion, to serve as a trustee of this valued organization that is of such great importance to Hawaiians and non-Hawaiians alike."

Kane could not be reached for comment yesterday. But in an interview in April, he said he was honored to be considered as a finalist and said he's been fortunate to have been touched by the legacy of Princess Bernice Pauahi Bishop.

Kane, who has worked closely with Kamehameha Schools officials to set up charter schools on DHHL land, also said he's impressed by the direction the estate has taken under Chief Executive Officer Dee Jay Mailer's guidance to expand its educational programs for Hawaiian children.

As the head of the DHHL since 2002, Kane has expanded the number of homes built by the department for Native Hawaiians.

He is a former chairman of the Hawai'i Republican Party and served as the party's executive director. He also has worked as government affairs liaison for the Building Industry Association of Hawai'i.

Established by the 1883 will of Princess Pauahi, Kamehameha Schools is a nonprofit trust that educates Hawaiian children. It is one of the nation's largest charities and is Hawai'i's largest private landowner with more than 360,000 acres.

Kane's appointment comes as the trust's endowment has dropped by more than $1.7 billion in wake of the turmoil in the global financial markets. The decline has prompted trustees to take a 10 percent pay cut in February.

Roy Benham, former president of the Kamehameha Schools Alumni Association, called Kane a "terrific administrator." But Benham said he had hoped that someone with a stronger financial background would have been selected given the challenges faced by the trust's endowment.

"He's doing a great job at DHHL but what we need is to make more money for the estate ... so that it could spend more on Hawaiian students," he said.