HOUSE OF REPRESENTATIVES             H.R. NO.              H.D. 1
TWENTIETH LEGISLATURE, 1999                                
STATE OF HAWAII                                            

                     HOUSE  RESOLUTION


 1        WHEREAS, the program structure for lower education, the
 2   display of programs that are grouped in accordance with the
 3   educational objectives to be achieved or the education-related
 4   functions to be performed, should be designed so that the
 5   appropriation, allocation, and expenditure of resources are
 6   clearly linked to education goals; and
 8        WHEREAS, however, despite numerous changes to the program
 9   structure of the Department of Education, the most recent
10   beginning with the 1993-1995 fiscal biennium, the finances of
11   the Department of Education have been difficult to analyze; and
13        WHEREAS, various audits of the Department of Education
14   have repeatedly found difficulty in quantifying spending, and,
15   for example, the internal system of the Department of Education
16   has not been able to track actual spending as compared with
17   budgeted funds; and
19        WHEREAS, the current trend in public accountability in
20   finances has been to develop "transparent" systems of financial
21   reporting, where costs and spending are dispersed to program
22   and cost centers; and
24        WHEREAS, with automated systems many school districts on
25   the mainland are not only able to identify true costs and
26   expenditures by program, but are also able to relate them to
27   programmatic goals; and
29        WHEREAS, regarding educational objectives, the Legislature
30   has supported the efforts of the Department of Education to
31   develop standards through the Hawaii Content and Performance
32   Standards and to develop an accountability system, because
33   these kinds of efforts are critical to the advancement of
34   student achievement in our public schools; and

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                                  H.R. NO.              H.D. 1

 1        WHEREAS, the Legislature has also supported school-based
 2   budgeting in an effort to receive specific information about
 3   how funds are budgeted, and the Legislature has repeatedly
 4   requested expenditure information about programs, including
 5   information related to the Felix v. Cayetano consent decree, in
 6   fulfilling its responsibility to provide the public with
 7   information on the expenditure of public funds; and
 9        WHEREAS, however, the budgetary and accounting
10   information provided by the Department of Education has been
11   deficient, so at this time it is unclear whether or not the
12   Department of Education has the financial structure or the
13   trained personnel needed to design a meaningful program
14   structure, to design a meaningful internal budgeting and
15   accounting system, to "cost out" strategies for producing high
16   levels of student achievement, or to comply with the
17   requirements of the Felix consent decree; now, therefore,
19        BE IT RESOLVED by the House of Representatives of the
20   Twentieth Legislature of the State of Hawaii, Regular Session
21   of 1999, that the Governor and the Chairperson of the Board of
22   Education are requested to appoint the members of a temporary
23   advisory commission to recommend a new finance structure for
24   lower education; and
26        BE IT FURTHER RESOLVED that the advisory commission is
27   requested to:
29        (1)  Review the structure of the existing budgetary and
30             financial system of the Department of Education with
31             respect to tracking budgeted amounts and actual
32             expenditures;
34        (2)  Recommend changes to the structure to more
35             efficiently and accurately track expenditures in
36             concert with programmatic goals to support the
37             accountability system;
39        (3)  Review the existing qualifications and minimum
40             requirements for key positions in the budget and
41             finance system; and
43        (4)  Recommend changes to the minimum qualifications
44             needed to ensure that individuals occupying these key
45             positions will in the future have the skills,
46             knowledge, and abilities needed to implement the new
47             program structure;
49   and

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                                  H.R. NO.              H.D. 1

 1        BE IT FURTHER RESOLVED that the advisory commission is
 2   requested to be comprised of not more than five voting members
 3   who shall have expertise in financial management, three of whom
 4   shall be appointed by the Governor, and two of whom shall be
 5   appointed by the Chairperson of the Board of Education; and
 7        BE IT FURTHER RESOLVED that the Superintendent of
 8   Education is requested to chair the advisory commission and to
 9   serve as an ex-officio nonvoting member of the commission; and
11        BE IT FURTHER RESOLVED that the Department of Education,
12   the Department of Budget and Finance, the Department of Human
13   Resources Development, and the Legislative Reference Bureau are
14   requested to provide technical assistance to the advisory
15   commission on such matters as the budgeting and accounting
16   systems of the Department of Education and minimum
17   qualifications for key appointed and tenured positions within
18   the Department of Education, the state personnel system and the
19   minimum qualifications of personnel therein, and legislative
20   drafting, respectively; and
22        BE IT FURTHER RESOLVED that the advisory commission is
23   requested to submit a status report to the Legislature no later
24   than twenty days prior to the convening of the Regular Session
25   of 2000, describing the progress of the commission; and a final
26   report to the Legislature no later than twenty days prior to
27   the convening of the Regular Session of 2001, containing the
28   findings and recommendations of the commission; and
30        BE IT FURTHER RESOLVED that certified copies of this
31   Resolution be transmitted to the the Governor, the Chairperson
32   of the Board of Education, the Superintendent of Education, the
33   Director of Finance, the Director of Human Resources
34   Development, and the Director of the Legislative Reference
35   Bureau.