WAIPAHU — A fire yesterday morning killed two pet dogs and extensively damaged the interior of a four-bedroom home in Waipahu. The family of three was not home when the fire broke out just before 7 a.m. at 94-1108 Kahuamo St. The fire was declared under control at 7:23 and extinguished at 7:30.

Gov. Linda Lingle presented an updated six-year financial plan to the Legislature yesterday that presumes another round of pay cuts for state workers and reduces benefits for people in Quest, the state's health plan for the poor and disabled.

HONOLULU — A feud between state auditor Marion Higa and Gov. Linda Lingle grew more heated yesterday with Higa challenging the administration to take a lie detector test. At issue are more than $1 billion in state investments in student-loan backed securities that have declined in value by about $250 million over the past several years.