REPORT TITLE:
Education budget


DESCRIPTION:
Authorizes the DOE to retain and expend a portion of all indirect
overhead reimbursements for discretionary grants.  Establishes a
federal grants search, development, and application revolving
fund.  Provides the DOE with autonomy over the administration of
its trust funds.  Prohibits federal impact aid received by the
DOE from being returned to the general fund.  Allows excess
federal impact aid to be spent by the DOE.  (HB1873 CD1)

 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                        1873
HOUSE OF REPRESENTATIVES                H.B. NO.           H.D. 2
TWENTIETH LEGISLATURE, 2000                                S.D. 1
STATE OF HAWAII                                            C.D. 1
                                                             
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                   A  BILL  FOR  AN  ACT

RELATING TO EDUCATION.



BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

 1      SECTION 1.  Chapter 29, Hawaii Revised Statutes, is amended
 
 2 by adding a new section to be appropriately designated and to
 
 3 read as follows:
 
 4      "29-     Department of education; federal funds; general
 
 5 fund offset.  (a)  Federal impact aid, U.S. Department of Defense
 
 6 funds, and federal indirect overhead reimbursements received by
 
 7 the department of education shall not be returned to the general
 
 8 fund.
 
 9      (b)  If the amount of federal impact aid and U.S. Department
 
10 of Defense funds received by the department of education exceeds
 
11 the authorized appropriation in the general appropriations act or
 
12 the supplemental appropriations act, then the governor shall:
 
13      (1)  Allow the department of education to increase the
 
14           federal fund expenditure ceiling for all program
 
15           identification numbers, each by an amount proportionate
 
16           to its portion of the total general fund appropriation
 
17           made by the legislature, and by the amount that the
 
18           federal impact aid and U.S. Department of Defense funds
 

 

Page 2                                                     1873
                                     H.B. NO.           H.D. 2
                                                        S.D. 1
                                                        C.D. 1
                                                        

 1           received by the department of education exceeds the
 
 2           authorized appropriation in the general appropriations
 
 3           act or the supplemental appropriations act; and
 
 4      (2)  Allow the department of education to retain the full
 
 5           amount of the general fund offset created by increased
 
 6           impact aid receipts; provided that the department shall
 
 7           not use the general fund offset to create new programs
 
 8           or expand existing programs.
 
 9      (c)  The department of education shall submit a report to
 
10 the legislature, not fewer than twenty days prior to the
 
11 convening of each regular session, concerning the exact amount
 
12 and specific nature of federal impact aid, U.S. Department of
 
13 Defense funds, and federal indirect overhead reimbursements
 
14 received under this section."
 
15      SECTION 2.  Chapter 302A, Hawaii Revised Statutes, is
 
16 amended by adding three new sections to be appropriately
 
17 designated and to read as follows:
 
18      "302A-    Federal indirect overhead reimbursements.  The
 
19 department may retain and expend federal indirect overhead
 
20 reimbursements for discretionary grants in excess of the
 
21 negotiated rate for such reimbursements as determined by the
 
22 director of finance and the superintendent.
 

 

 
Page 3                                                     1873
                                     H.B. NO.           H.D. 2
                                                        S.D. 1
                                                        C.D. 1
                                                        

 1      302A-    Federal grants search, development, and
 
 2 application revolving fund.  (a)  There is established a federal
 
 3 grants search, development, and application revolving fund into
 
 4 which shall be deposited the department's share of federal
 
 5 indirect overhead reimbursements, pursuant to section 302A-  .
 
 6 Unless otherwise provided by law, all other receipts shall
 
 7 immediately be deposited to the credit of the general fund of the
 
 8 State.  The department may expend funds in the federal grants
 
 9 search, development, and application revolving fund to search for
 
10 discretionary grants and develop program applications to secure
 
11 additional revenues for the department.  Moneys in the revolving
 
12 fund may be expended for consultant services and operational
 
13 expenses, including the creation and hiring of temporary staff.
 
14      (b)  The department shall prepare and submit an annual
 
15 report on the status of the federal grants search, development,
 
16 and application revolving fund to the legislature.  The annual
 
17 report shall include but not be limited to a list of the grant
 
18 applications to the federal agencies and the grant awards
 
19 received.
 
20      302A-    Appropriations for trust funds of the department
 
21 of education.  Notwithstanding any other law to the contrary, in
 
22 any fiscal year, if the amount of revenues deposited into a trust
 
23 fund of the department of education exceeds the amount
 
24 appropriated from that fund for that year, the superintendent may
 

 

Page 4                                                     1873
                                     H.B. NO.           H.D. 2
                                                        S.D. 1
                                                        C.D. 1
                                                        

 1 approve expenditures in excess of the amount appropriated, up to
 
 2 the amount by which revenues for that fund exceed the
 
 3 appropriations from that fund for a fiscal year; provided that
 
 4 the department shall submit a report annually to the governor and
 
 5 the legislature of all expenditures in excess of each fund's
 
 6 appropriation for each fiscal year."
 
 7      SECTION 3.  There is appropriated out of the federal grants
 
 8 search, development, and application revolving fund the sum of
 
 9 $1,000,000 or so much thereof as may be necessary for fiscal year
 
10 2000-2001 to the department of education to carry out the
 
11 purposes of this Act, including the creation and hiring of
 
12 necessary staff.
 
13      The sum appropriated shall be expended by the department of
 
14 education for the purposes of this Act.
 
15      SECTION 4.  If any provision of this Act, or the application
 
16 thereof to any person or circumstance is held invalid, the
 
17 invalidity does not affect other provisions or applications of
 
18 the Act, which can be given effect without the invalid provision
 
19 or application, and to this end the provisions of this Act are
 
20 severable.
 
21      SECTION 5.  It is the intent of this Act not to jeopardize
 
22 the receipt of any federal aid nor to impair the obligation of
 
23 the State or any agency thereof to the holders of any bond issued
 
24 by the State or by any such agency, and to the extent, and only
 

 

Page 5                                                     1873
                                     H.B. NO.           H.D. 2
                                                        S.D. 1
                                                        C.D. 1
                                                        

 1 to the extent, necessary to effectuate this intent, the governor
 
 2 need not enforce the strict provisions of this Act, but shall
 
 3 promptly report any such lack of enforcement with reasons
 
 4 therefor to the legislature at its next session thereafter for
 
 5 review by the legislature.
 
 6      SECTION 6.  New statutory material is underscored.
 
 7      SECTION 7.  This Act shall take effect on July 1, 2000.