THE SENATE                           S.R. NO.              91
TWENTIETH LEGISLATURE, 1999                                
STATE OF HAWAII                                            

                    SENATE  RESOLUTION


 1        WHEREAS, the Federal Impact Aid Law, referred to as P.L.
 2   103-382, Title VIII, requires the United States Department of
 3   Defense to make arrangements as may be necessary to provide
 4   free public education to all federally connected children; and
 6        WHEREAS, traditionally, property, sales, and personal
 7   income taxes account for a large portion of the average school
 8   district's annual budget; and
10        WHEREAS, parents or guardians of federally connected
11   students often pay no income taxes or vehicle license fees in
12   their state of residence, live on nontaxable federal property,
13   shop at stores that do not generate taxes, and work on
14   nontaxable federal land, thereby adversely affecting a school
15   district's financial base; and
17        WHEREAS, impact aid provides a payment to school districts
18   in lieu of lost taxes to assist with the basic educational
19   needs of its students; and
21        WHEREAS, the federal impact aid program, provides
22   opportunities for school districts to qualify for additional
23   funding through title 20 United States Code section 7702,
24   relating to payments for property, section 7703(d), relating to
25   military students with disabilities, section 7703(f), relating
26   to heavily impacted districts, and section 7707, relating to
27   construction and maintenance needs of certain school districts;
28   and
30        WHEREAS, during the 1996 Congress, the House Impact Aid
31   Coalition's top priority was a reversal of the decades long
32   decline in impact aid funding and a recommitment to the belief
33   that the federal government is duty bound to assist communities
34   which have a large federal government presence; and
36      WHEREAS, the House Impact Aid Coalition identified 1,800
37 school districts and 1.5 million children across the country who
38 depend on the impact aid program and further recognized that
39 insufficient funding of impact aid can also harm an estimated
40 17.5 million children whose families reside in school districts

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 1 impacted by a federal presence; and
 3      WHEREAS, to determine the amount of impact aid paid,
 4 students are weighted according to the Weighted Federal Student
 5 Units which establish six categories based on different financial
 6 impact on the school district; and
 8      WHEREAS, the National Association of Federally Impacted
 9 Schools, recognizing that school districts that depend on impact
10 aid are clearly struggling, recommends increasing the weight for
11 military students and for students of civilian parents who work
12 or live on federal property to facilitate more equitable
13 financing of education of federally connected students; and
15      WHEREAS, for fiscal year 1998, there were 30,165 federally
16 connected students attending Hawaii schools, 13,631 military
17 students living on federal property, 2,612 military students not
18 living on federal property, 9,631 civilian students whose parents
19 work on federal property, and 4,291 federally connected students
20 residing in federal low-rent housing projects; and
22      WHEREAS, the Department of Education impact aid summary
23 indicates that the State of Hawaii spends an average of $6,099
24 per year to educate each federally connected student, while the
25 average impact aid basic support received per federal weighted
26 student in Hawaii is $778, leaving eighty-seven per cent of the
27 cost to be paid by Hawaii taxpayers; now, therefore,
29      BE IT RESOLVED by the Senate of the Twentieth Legislature of
30 the State of Hawaii, Regular Session of 1999, that the Board of
31 Education and the Department of Education provide a report on the
32 history of impact aid received by Hawaii, including the sections
33 of the United States Code under which an application for funds
34 was made and how these funds were dispersed; and
36      BE IT FURTHER RESOLVED that the Board of Education and the
37 Department of Education identify the full cost of educating
38 federally connected students as allowed by the federal impact aid
39 formulas, including needs for general administration, general
40 instruction, special education, capital improvements, and
41 equipment in order to maximize impact aid paid to the State; and
43      BE IT FURTHER RESOLVED that the Board of Education and the
44 Department of Education identify all public educational
45 institutions located on United States Department of Defense
46 facilities and all other public educational institutions that are

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                                  S.R. NO.              91

 1 attended predominantly by students residing on federal property
 2 and pursue separate appropriations for construction and
 3 maintenance as allowed under title 20 United States Code section
 4 7707; and
 6      BE IT FURTHER RESOLVED that the Board of Education and the
 7 Department of Education submit their findings and recommendations
 8 to the Legislature not less than twenty days prior to the
 9 convening of the Regular Session of 2000; and
11      BE IT FURTHER RESOLVED that a copy of this final report be
12 transmitted to Hawaii's congressional delegation with a
13 recommendation that the Department of Defense be apprised of the
14 significant findings and proposed remedies; and
16      BE IT FURTHER RESOLVED that the members of Hawaii's
17 congressional delegation are respectfully urged to join in a
18 concerted effort to provide full funding for federally connected
19 students in Hawaii and minimize the financial impact of federally
20 connected students to Hawaii's public education system; and
22      BE IT FURTHER RESOLVED that certified copies of this
23 Resolution be transmitted to the Board of Education, the
24 Department of Education, and each member of Hawaii's
25 congressional delegation.
29                         OFFERED BY:  ____________________________