A U.S. Department of the Interior Fish and Wildlife Service proposal to preserve open space the state is proposing to sell to plug a budget hole was made public yesterday, a day before the full House of Representatives was to take up the proposed 2008 budget.

In its proposal, sent via e-mail on June 7 to Rep. Steven M. Costantino, chairman of the House Finance Committee, Fish and Wildlife proposed buying 70 acres of state-owned land in South Kingstown that borders the John H. Chafee National Wildlife Refuge — which Fish and Wildlife administers — in exchange for the state conserving the approximately 50 acres it had proposed selling for $3.4 million to help balance its budget.

The 70 acres in South Kingstown would be purchased at fair market value, with the price determined through a certified appraisal, said Charles E. Vandemoer, refuge manager of the Rhode Island National Wildlife Refuge Complex.

The land on Pettaquamscutt Cove, adjacent to the Oliver H. Stedman Government Center, would be incorporated into the Chafee refuge. It would connect two parcels currently owned by Fish and Wildlife, Vandemoer said.

Fish and Wildlife also administers the Ninigret National Wildlife Refuge, which borders the southern shore of Watchaug Pond.

The parcel the state wants to sell borders the northwestern shore of the pond. The land, once part of Burlingame State Park, is administered by the state Department of Mental Health, Retardation and Hospitals as part of the Pastore Leisure Center. It was purchased in 1934 through condemnation by the Metropolitan Parks Commission (predecessor of the state Department of Environmental Management) to be preserved as open space. In 1986, the DEM transferred the land to the MHRH to construct a group home amid a state push to deinstitutionalize mental-health patients.

House spokesman Larry Berman said yesterday Costantino “is aware of the existence” of the Fish and Wildlife proposal but “is leaving the money savings in the budget for the sale of the [Charlestown] land.

“All we did was [to] put the money in the budget that Governor Carcieri suggested would bring revenue to the State of Rhode Island,” Berman said yesterday.

“That amount of money,” Berman said, referring to the $3.4-million MHRH estimated sale price, “is remaining in the budget.

“It’s up to Governor Carcieri to work out the details as to this sale or an exchange of land.”

Rep. Donna Walsh, D-Charlestown, who filed an amendment Wednesday to remove the land sale from the budget and cut $3.4 million from the Judiciary’s budget to offset the loss, said she may withdraw the amendment if she gets firm assurances the land will not be sold.

“I just want to make sure it doesn’t fall through,” said Walsh.

Opponents of the sale were jubilant at the news of Fish and Wildlife’s proposal.

“This could be the ultimate win-win situation,” said Matt Auten, advocate for Environment Rhode Island. “It feels like we won the lottery, and it would be insane for the state not to show up and collect the winnings.”

Carcieri spokesman Jeff Neal expressed cautioned optimism, saying no negotiations have taken place.

“At this [point], it’s still a proposal,” Neal said. “It’s a very promising proposal, and it’s a proposal that gives us significant reason for hope.”

But “I certainly don’t want to make any promises that I have to take back later on,” he said.

The DEM is also reviewing a possible purchase of the land, which would be incorporated again into Burlingame State Park, Director W. Michael Sullivan confirmed yesterday.

Under the Fish and Wildlife proposal, the Charlestown land would be conserved either as part of the Burlingame Management Area or through a conservation easement provided at no cost to a conservation organization.

marmenta@projo.com