HONOLULU -- The state's homeless shelter in Kakaako to help those displaced from Ala Moana Beach Park is creating problems in nearby areas.

Homeless residents are settling into the new cubicles at the state's Kakaako shelter. Some are even instilling homey decorations. The site is overflowing. Workers have had to turn some people away.

"It is not luxurious by any measure but it is safe and secure," Gov. Linda Lingle said.

The shelter opened only two weeks ago with a capacity of 200. On Monday night it took in 277.

Some homeless hoping to move into the shelter soon now hang out next door at state's Kakaako Park.

Other homeless who must vacate the shelter during the day also spill out into Kakaako Park. Korethy Lukas' family goes to the park each morning to pass time until the shelter reopens for dinner.

Some Kakaako Park goers feel uncomfortable about having so many homeless around -- many are homeless who once lived in Ala Moana park.

Lincoln Elementary School teachers had to move from their planned picnic place on Tuesday.

"We noticed that there were some homeless out there and we didn't want to bother them and have our students eat their lunch and play near them," Lincoln Elementary School teacher Vicky Mitsunaga said. "We were worried about them being in contact with our children."

The state hopes to lure more homeless out of parks by opening up more temporary shelters. The governor signed bills that would allot millions of dollars to create more shelters.