Report Title:

DOE; Decentralization

Description:

Requires the Superintendent to decentralize fiscal and administrative authority in DOE.

HOUSE OF REPRESENTATIVES

H.B. NO.

1347

TWENTY-SECOND LEGISLATURE, 2003

 

STATE OF HAWAII

 


 

A BILL FOR AN ACT

 

relating to education.

 

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

SECTION 1. The legislature finds that schools and school complexes lack meaningful control over their management and finances. The state budgetary system and the department of education's centralized bureaucracy have made it difficult for schools to flexibly meet challenges and fund needed items. While the department has moved toward decentralizing aspects of its management by establishing complex areas that are smaller than the previous school districts, there has been little significant growth in local control over education, and especially education finance.

In recent years, the University of Hawaii has enjoyed an increased level of freedom for the usual budgetary restraints. This type of reform would allow complex areas to more flexibly attend to the needs of schools without going through the onerous process that faces all state departments that seek to expend funds. This, in turn, would improve education by allowing schools to spend moneys on a timely basis and address pressing needs immediately.

Accordingly, the purpose of this Act is to:

(1) Require the department of education to delegate responsibility for fiscal and operational management to regional administrative units;

(2) Give similar flexibility afforded to the University of Hawaii in allotment process to the department of education; and

(3) Require the department of education to provide block moneys to the regional administrative units on a quarterly basis.

SECTION 1. Section 37-34, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:

"(b) Before appropriations for the University of Hawaii become available to the university, the university shall advise the governor and the director of finance of the amount necessary for payments for financing agreements under chapter 37D, the governor, with the assistance of the director of finance, as may be necessary, shall establish allotment ceilings for each source of funding of all of the appropriations of the University of Hawaii for each allotment period and shall advise the university of these determinations. Before appropriations for the department of education become available to the department, the department shall advise the governor and the director of finance of the amount necessary for payments for financing agreements under chapter 37D, and the governor, with the assistance of the director of finance, as may be necessary, shall establish allotment ceilings for each source of funding of all of the appropriations of the department of education for each allotment period and shall advise the department of these determinations."

SECTION 2. Section 37-36, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

"(a) The director of finance may modify or amend any previous allotment upon notice to the department or establishment concerned; provided that:

(1) For the University of Hawaii[,] or the department of education, the director of finance may modify or amend any previous allotment only upon application of or notice to the university[,] or the department of education, as appropriate, and upon public declaration, which shall be made ten days prior to the modification or amendment taking effect;

(2) The modification or amendment shall be made only to avoid an illegal result or in anticipation of a revenue shortfall;

(3) No deficit or undue reduction of funds to meet future needs of the department or establishment will result from the modification or amendment; and

(4) No modification or amendment shall reduce an allotment below the amount required to meet valid obligations or commitments previously incurred against the allotted funds."

SECTION 3. Section 302A-1102, Hawaii Revised Statutes, is amended to read as follows:

"[[]§302A-1102[]] Department of education; statewide and regional administrative services. The department shall serve as the central support system responsible for the overall administration of statewide educational policy, interpretation, and development of standards for compliance with state and federal laws, and coordination and preparation of a systemwide budget for the public schools. The department [may] shall establish regional administrative units to provide administrative support to the schools for personnel, fiscal, and procurement services. The regional administrative units shall be responsible for the financial management of their respective complex areas. Notwithstanding the provisions of chapter 37 to the contrary, regional administrative units shall receive block funding on a quarterly basis from the department for its operational needs. The regional administrative units shall be authorized to expend funds up to allotment ceiling limits established pursuant to section 37-34. The regional administrative units may also be assigned responsibility for the administration and operation of special education programs and special schools."

SECTION 4. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 5. This Act shall take effect on July 1, 2003.

INTRODUCED BY:

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