Report Title:

DOE; Student Weighted Formula; School Community Councils; Hawaii Principals Academy; National Board Certification Incentive Program; Reduction of Bureaucracy

Description:

Implements education reform and decentralization measures; appropriates funding.

HOUSE OF REPRESENTATIVES

H.B. NO.

2984

TWENTY-SECOND LEGISLATURE, 2004

 

STATE OF HAWAII

 


 

A BILL FOR AN ACT

 

relating to education.

 

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

PART I

PURPOSE

SECTION 1. The legislature finds that the public education system in Hawaii needs to be improved. Over the years, we have been improving the state of our system by continuing to fix the schools, continuing to improve the salaries and working conditions of professionals, and continuing to help students achieve. There are several ideas that will improve the state of our educational system beginning in 2004 and going forward. In order to implement these concepts and initiatives, it will require more than a year, more than dollars, more than criticism, more than sweat. A collaborative effort is required.

The purpose of this Act is to enhance educational outcomes in public schools by:

(1) Implementing education reform and decentralization measures;

(2) Establishing a student weighted formula for providing operating moneys to individual public schools and school complexes;

(3) Establishing school community councils;

(4) Establishing a Hawaii principals academy;

(5) Establishing a national board certification incentive program; and

(6) Reducing bureaucracy from outside the department of education by transferring to it many of those functions, positions, records, and equipment from other state agencies that were previously dedicated to serving department of education needs.

PART II

STUDENT WEIGHTED FORMULA

SECTION 2. Chapter 302A, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

"§302A-   Student weighted formula. (a) In providing operating moneys to public schools, the department shall implement a student weighted formula that takes into account the educational needs of each student. Under the student weighted formula, the department shall:

(1) Create a list of applicable criteria that affect the cost of educating students;

(2) Determine the cost of educating a baseline student; and

(3) Create a system of weights based upon the criteria that may be applied to the cost of a baseline student to determine the relative cost of educating an student.

As used in this section, "baseline student" means a public school student to which none of the criteria determined under paragraph (1) apply.

(b) Under the student weighted formula, the principal shall be responsible for expending operating moneys provided to the principal's school."

SECTION 3. Section 302A-101, Hawaii Revised Statutes, is amended by adding a new definition to be appropriately inserted and to read as follows:

""Student weighted formula" means a formula for allocating operating monies to individual public schools that includes a system of weighted criteria affecting the baseline cost of educating each student attending a public school."

SECTION 4. Section 302A-1306, Hawaii Revised Statutes, is repealed.

["[§302A-1306] School priority program; established. (a) There is established within the department a school priority program to augment regular instruction and other educational services at the discretion of the individual public schools. Further, it is the intent of the legislature that the school priority program promote the equitable distribution of educational resources statewide, strengthen the scope of decisionmaking, increase flexibility in resource allocation at the school level, and provide a systematic method of conforming resource allocation to the unique needs and priorities of individual schools.

(b) All moneys to carry out the purposes of the school priority program under this section to section 302A-1309 shall be allocated by the legislature through appropriations out of the state general fund.

(c) The department shall include in its budgetary request for each upcoming fiscal period, the amounts necessary to effectuate the purposes of this section to section 302A-1309."]

SECTION 5. Section 302A-1307, Hawaii Revised Statutes, is repealed.

["[§302A-1307] Distribution of resources. The superintendent shall allot the moneys of the school priority program to the school districts based on enrollment. In the allotment of positions to the districts, the superintendent shall calculate each district's entitlement based on enrollment and may deploy one instructional resource augmentation position for each two hundred fifty students enrolled in each school; provided that all positions shall be deployed."]

SECTION 6. Section 302A-1309, Hawaii Revised Statutes, is amended to read as follows.

"[[]§302A-1309[]] Departmental controls. The superintendent shall develop and implement appropriate planning procedures and follow-up accountability reports, without regard to chapter 91, to ensure sound planning, control, and accountability in the use of moneys [allocated by the legislature to the school priority program.] by schools and school complexes. The procedures and reports, however, shall recognize the need for providing the schools latitude and discretion to determine their needs and priorities, and shall avoid imposing undue amounts of paperwork and administrative burdens on the schools.

The department shall submit an annual report to the legislature, which shall include but not be limited to an accounting of how funds were used by the schools."

SECTION 7. (a) The department of education shall convene a working group to:

(1) Address the implementation of the student weighted formula;

(2) Determine which statutes, rules, policies, or procedures need to be amended or removed to enable the effective implementation of the student weighted formula; and

(3) Determine, for the purposes of efficiency and to the degree practicable, what percentage of any allocations made under the student weighted formula would most appropriately remain at the district and school complex level to facilitate certain components of the public educational system, including but not limited to:

(A) Special education;

(B) School-based behavioral health programs;

(C) School repair and maintenance;

(D) The alignment of curriculum complex-wide; and

(E) Positions above the school level, such as complex area superintendents, and district fiscal and business officers.

(b) The working group shall include a representative group of stakeholders including the:

(1) Superintendent of education;

(2) Chair of the board of education; and

(3) The following individuals appointed by the superintendent of education and approved by the board of education:

(A) One department of education administrator;

(B) Two department of education teachers;

(C) Two department of education principals;

(D) One parent of a public school student who is a member of the Hawaii state parent teacher student association; and

(E) One member of the community.

(c) The board of education shall appoint a master to oversee, coordinate and facilitate the work of the working group as regards the transition to the student weighted formula, and a master to oversee, coordinate and facilitate the work of the working group as regards the fiscal and accountability implications of implementing the student weighted formula.

(d) The working group shall submit a report of its findings to the legislature no later than twenty days before the convening of the regular session of 2005 including a:

(1) Detailed plan for implementing the student weighted formula; and

(2) List of statutes, rules, policies, or procedures that need to be amended or removed to enable the effective implementation of the student weighted formula.

PART III

SCHOOL COMMUNITY COUNCILS

SECTION 8. Section 89-10.6, Hawaii Revised Statutes, is amended to read as follows:

"§89-10.6 [School/community-based management] School community council waiver. A school or a learning support center participating in the [school/community-based management] school community council program may initiate a waiver from policies, rules, or procedures, including collective bargaining agreements, as provided for in section 302A-1126."

SECTION 9. Section 302A-101, Hawaii Revised Statutes, is amended by deleting the definition of "school/community-based management system":

[""School/community-based management system" means a method of educational management that diffuses educational decisionmaking to involve or secure the input of those persons directly affected by the decision to be made at the school level, and encourages school-initiated methods for achieving educational goals established statewide by the board."]

SECTION 10. Section 302A-202, Hawaii Revised Statutes, is amended to read as follows:

"[[]§302A-202 Student assessments.[]] Any school electing to participate in [school/community-based management] school community council may develop and implement its own student assessment mechanisms; provided that the board shall include the results of the assessments in the educational status report to the legislature and the governor required in section 302A-1004."

SECTION 11. Section 302A-601, Hawaii Revised Statutes, is repealed.

["[§302A-601] Selection of school personnel. School/community-based management councils may participate in the selection of school personnel by providing input into the selection process."]

SECTION 12. Section 302A-1103, Hawaii Revised Statutes, is amended to read as follows:

"[[]§302A-1103[]] Principal; authority and responsibility. The role of the principal shall include but not be limited to overseeing the day-to-day management of the school, the primary function of which is to develop and deliver instructional services to students in accordance with statewide educational policy and standards. The principal shall collaborate with the:

(1) Complex to ensure that the goals and objectives of the complex are being met; and

(2) School community council in:

(A) Ensuring the school's compliance with the educational accountability system of section 302A-1004, Hawaii Revised Statutes; and

(B) Providing collaborative opportunities for input and consultation.

The principal shall ensure that the curriculum facilitates the achievement of the statewide student performance standards adopted for the public school system."

SECTION 13. Section 302A-1124, Hawaii Revised Statutes, is amended to read as follows:

"[[]§302A-1124[]] Mandate to initiate [school/community-based management system] school community councils. (a) The department[, through the board and its superintendent, shall formulate policies, including criteria and procedures to determine which schools and learning support centers shall participate in the system, to initiate a school/community-based management system in the public schools.] shall establish school community councils that:

(1) Diffuse educational decision-making by involving and securing the input of those persons directly affected at the school level; and

(2) Encourage school-initiated methods for achieving statewide educational goals established by the board of education.

(b) Under school community councils, each public school shall establish and maintain a school community council which shall collaborate with and assist the school's principal in:

(1) Ensuring the school's compliance with the educational accountability system of section 302A-1004; and

(2) Providing collaborative opportunities for input and consultation.

School community councils may participate in the selection of school personnel by providing input into the selection process.

(c) The board of education shall establish policies governing the composition, election, and operation of school community councils, provided that such school community councils shall be composed of a representative group of stakeholders, including but not limited to:

(1) A parent representative elected by an organized parent group, or, if none exists at a particular school, elected by ballots distributed among and collected from the parents of the school's students;

(2) A student representative elected by ballots distributed among and collected from the school's students;

(3) A teacher representative elected by ballots distributed among and collected from the school's teachers;

(4) The school's principal;

(5) A representative of school staff excluding teachers and the principal elected by ballots distributed among and collected from such school staff, provided that no one voting in this category has voted or will vote in any other category during a given school year; and

(6) A community representative elected by an organized

community group of school partners, or, if none exists

at a particular school, selected by organized parent

groups, or, if none exists at a particular school,

appointed by the principal.

A principal may appoint members to fill any vacancy on the school community council."

SECTION 14. Section 302A-1126, Hawaii Revised Statutes, is amended to read as follows:

"[[]§302A-1126[]] Waiver of policy, rule, or procedures. Any state agency that may be required to act under state law on a matter affecting an individual school, its school community, or a learning support center shall waive otherwise applicable policies, rules, or procedures when requested to do so by a school or a learning support center participating in the [school/community-based management system] school community council unless the agency, within thirty days, can justify a denial to the appropriate authority. The board shall adopt procedures necessary to process waivers initiated by schools or learning support centers subject to the [school/community-based management system.] school community council. This section shall apply to collective bargaining agreements as provided for in all relevant collective bargaining agreements negotiated pursuant to chapter 89."

SECTION 15. Section 302A-1505, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:

"(b) Prior to meeting with the department of accounting and general services to advise it of a school's repair and maintenance needs, the school's principal and the business and fiscal officer shall consider the recommendations made by the [school/community-based management] school community council, if there is such a council at the school; or the local school board, if the school is a new century charter school or a new century conversion charter school. If there is no [school/community-based management] school community council or local school board, then the school's principal shall appoint a standing committee composed of a teacher, a member of the support staff, a parent, a student, and a community member."

SECTION 16. Section 302A-1507, Hawaii Revised Statutes, is amended to read as follows:

"[[]§302A-1507[]] Classroom cleaning project; established. (a) There is established a classroom cleaning project in all [schools designated to participate in school/community-based management.] school community councils. Each [school/community-based management] school community council school, through its school community council, may develop mechanisms to provide for classroom cleaning, including but not limited to having parent, student, or other community groups clean the classrooms on a regular, continuing basis.

(b) [School/community-based management] School community council schools may use any available resources to achieve the purposes of this section; provided that no full-time custodial staff currently employed at the school shall be displaced."

PART IV

HAWAII PRINCIPALS ACADEMY

SECTION 17. The role of principals in the department of education is continuing to evolve over time. For far too long, their essential role as the leaders of learning communities has been hindered by excessive demands on their time to perform administrative, fiscal, reporting, and logistical functions. These types of responsibilities are increasingly being assumed by vice principals, educational officers, district business and fiscal officers, and complex area superintendents. To give the principals the tools they need to succeed in the performance of their new responsibilities and achieve the accountability required under section 302A-1004 they need to be given adequate training in a newly established Hawaii principal academy, and recruited and retained with appropriate measures. The Hawaii principal academy may also provide training to school community councils designed to facilitate their effective collaboration with principals.

SECTION 18. Chapter 302A, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

"§302A-   Hawaii principals academy. There is established the Hawaii principals academy, which shall be placed within the department for administrative purposes only. The academy shall fully support and train department principals to become better school leaders, assuring that each principal is trained to fully assume the principal's role as the educational leader accountable under section 302A-1004. The academy may also provide training to school community councils designed to facilitate their effective collaboration with principals."

PART V

NATIONAL BOARD CERTIFICATION INCENTIVE PROGRAM

SECTION 19. The regular session of the 2001 legislature of the State of Hawaii appropriated funding to help teachers achieve national board certification, following the lead of many other states that have provided incentives and support for teachers seeking such certification. States that have successfully encouraged teachers have typically made long-term commitments, often providing bonuses or salary increases for the ten-year life of their national certification. The State of Hawaii has no such long-term commitment. The previous legislative appropriation has ended and department of education support is in question.

The legislature finds that national board certification will help ensure that students are receiving the highest quality instruction and teachers are actively encouraged to remain in their profession. The legislature further finds that national certification also provides a useful means of helping teachers advance in their careers without moving into administration or some other role outside of the classroom.

SECTION 20. Chapter 302A, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

"§302A-   Teacher national board certification incentive program. There is established within the department of education a teacher national board certification incentive program to recognize teachers who have achieved national board certification from the national board for professional teaching standards. The program shall provide a $5,000 bonus per year for each teacher who has current national board certification; provided that such teachers shall participate in the department of education's program on best practices in the building of capacity for teaching and learning by training and mentoring other teachers."

PART VI

REDUCTION OF BUREAUCRACY

SECTION 21. The legislature finds that too many departments have been restricting the efficiency of the State's public educational system. The services provided to the department of education from the department of accounting and general services, department of budget and finance, department of human resources development, department of the attorney general, and department of human services need to be scrutinized to reduce bureaucracy and improve the responsiveness and service delivery of the department of education. The legislature further finds that the department of education needs to create effective and responsive fiscal and personnel systems that ensure resources are spent effectively to improve the academic achievement, health and well-being, and civic responsibility of all students.

SECTION 22. (a) To implement phase one of the transfer of rights, powers, functions, and duties from various state agencies to the department of education, effective July 1, 2004, all rights, powers, functions, and duties of the:

(1) Department of accounting and general services are transferred to the department of education, provided that such a transfer is restricted to those rights, powers, functions, and duties which will enable the department of education to:

(A) Execute personal service contracts;

(B) Access capital improvement project funds directly through the department of budget and finance instead of utilizing the department of accounting and general services as the expending agency;

(C) Budget AGS 807 physical plant operations and maintenance as EDN 807; and

(2) Department of budget and finance are transferred to the department of education, provided that such a transfer is restricted to those rights, powers, functions, and duties which will enable the department of education to control their:

(A) Funding of collective bargaining agreements; and

(B) Expenditure of federal funds.

(b) To implement phase two of the transfer of rights, powers, functions, and duties from various state agencies to the department of education, the board of education shall:

(1) Convene a working group to identify what remaining rights, powers, functions, and duties should be transferred from which state agencies to the department of education, which may include but not be limited to the:

(A) Department of accounting and general services' present jurisdiction over:

(i) Use of repair and maintenance funds;

(ii) Capital improvement projects;

(iii) Vendor payments; and

(iv) Procurement and distribution.

(B) Department of budget and finance's present jurisdiction over:

(i) Program and financial plans;

(ii) Budgets;

(iii) Allocations;

(iv) Restrictions;

(v) Transfers; and

(vi) Carryovers;

(C) Components within the department of human resources development that, if consolidated, will enable the department of education to:

(i) Create a centralized human resources system that will encompass all classes of work in the department of education, integrating payroll, records, transactions, leaves, and reports; and

(ii) Control recruitment, management, classification, compensation and labor relations;

(D) Department of the attorney general's present jurisdiction over:

(i) Negotiating workers' compensation claims; and

(ii) Aspects of labor relations of department of education employees; and

(E) Department of human services:

(i) Employee benefits; and

(ii) Employment background checks.

(2) Appoint a master to oversee, coordinate and facilitate the work of the working group.

(c) The working group shall be composed of:

(1) The auditor or their designee;

(2) Two representatives from the business community appointed by the superintendent of education and approved by the board of education; and

(3) No more than five individuals appointed by the master and approved by the board of education, with the appropriate professional skills, experiences, and qualifications.

(d) The working group shall submit a report of its findings to the legislature no later than twenty days before the convening of the regular session of 2005."

SECTION 23. Section 37-67, Hawaii Revised Statutes, is amended to read as follows:

"[[]§37-67[]] Responsibilities of the department of budget and finance. The director of finance shall assist the governor in the preparation, explanation and administration of the state long-range plans, the proposed six-year program and financial plan and the state budget. To this end, subject to this part, the director shall:

(1) With the approval of the governor, develop procedures and prescribe rules and regulations to guide such state agencies as may be assigned by the director the task of formulating and preparing the initial proposals with respect to long-range plans, program and financial plans, program budget requests and program performance reports and to assure the availability of information needed for effective policy decision-making.

(2) Assist such state agencies in the formulation of program objectives, preparation of program plans and program budget requests, and reporting of program performance.

(3) Coordinate, analyze and revise as necessary the program objectives, long-range plans, program and financial plans, program budget requests and program performance reports initially proposed or prepared by such state agencies and develop the state comprehensive program and financial plan, budget and program performance report.

(4) Administer its responsibilities under the program execution provisions of this part so that the policy decisions and budget determinations of the governor and the legislature are implemented to the fullest extent possible within the concepts of proper management.

(5) Investigate continuously the administration of the various agencies for the purpose of advising the governor and recommending to the governor, the legislature and the committees of the legislature concerning the duties of the various positions in these agencies, the methods of the agency, the standards of efficiency therein, and changes which in the director's judgment will produce greater effectiveness of programs and economy in the conduct of government programs and assist in the preparation of program and financial plans, budget requests and program performance reports.

(6) Provide the legislature and any member or committee of either house of the legislature with such documents and information as may be requested concerning the programs, budget, and fiscal and management operations of the State[.];

provided that this section shall not apply to the board of education and department of education."

SECTION 24. Section 37-41.5, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

"(a) The department of education may retain up to ten [five] per cent of any appropriation, except for appropriations to fund financing agreements entered into in accordance with chapter 37D, [for the school-based budgeting program EDN 100 and for the comprehensive school support services program EDN 150 at the close of a fiscal year] and the funds retained shall not lapse until June 30 of the first fiscal year of the next fiscal biennium. The department of education shall submit:

(1) A report to the director of finance ninety days after the close of each fiscal year, which shall be prepared in the form prescribed by the director of finance and shall identify the total amount of funds that will carry over to the next fiscal year; and

(2) A copy of this report to the legislature, as well as a report identifying the carryover of funds on a school-by-school basis, at least twenty days prior to the convening of the next regular session of the legislature."

SECTION 25. Section 302A-1301, Hawaii Revised Statutes, is amended to read as follows:

"[[]§302A-1301[]] School system financial accountability. [(a)] Beginning with the 1995-1997 fiscal biennium, the department's administrative expenditures shall not exceed 6.5 per cent of the total department operating budget unless approved by the legislature.

[(b) The department shall not transfer any funds appropriated under the school-based budgeting program EDN 100 of the state budget, except for unforeseeable circumstances that pose a threat to the health and safety of personnel and students, and subject to approval by the governor and notification to the legislature.]"

SECTION 26. All appropriations, records, equipment, machines, files, supplies, contracts, books, papers, documents, maps, and other personal property heretofore made, used, acquired, or held by the department of accounting and general services and department of budget and finance relating to the functions transferred to the department of education shall be transferred with the functions to which they relate.

SECTION 27. All officers and employees whose functions are transferred by this Act shall be transferred with their functions and shall continue to perform their regular duties upon their transfer, subject to the state personnel laws and this Act.

No officer or employee of the State having tenure shall suffer any loss of salary, seniority, prior service credit, vacation, sick leave, or other employee benefit or privilege as a consequence of this Act, and such officer or employee may be transferred or appointed to a civil service position without the necessity of examination; provided that the officer or employee possesses the minimum qualifications for the position to which transferred or appointed; and provided that subsequent changes in status may be made pursuant to applicable civil service and compensation laws.

An officer or employee of the State, whether tenured or not, who may be transferred or appointed to a civil service position as a consequence of this Act shall become a civil service employee without the loss of salary, seniority, prior service credit, vacation, sick leave, or other employee benefits or privileges and without the necessity of examination; provided that such officer or employee:

(1) Possesses the minimum qualifications for the position to which transferred or appointed; and

(2) That such a salary preservation or increase shall not last more than two years if the transfer is to a lower position or one of lesser responsibility.

If an office or position held by an officer or employee having tenure is abolished, the officer or employee shall not thereby be separated from public employment, but shall remain in the employment of the State with the same pay and classification and shall be transferred to some other office or position for which the officer or employee is eligible under the personnel laws of the State as determined by the head of the department.

SECTION 28. Chapter 302A, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

"§302A-   Exempt from procurement code. The department shall be exempt from the state procurement code, chapter 103D."

SECTION 29. There is appropriated out of the general revenues of the State of Hawaii the sum of $          , or so much thereof as may be necessary for fiscal year 2004-2005, for the purposes of this Act.

The sum appropriated shall be expended by the department of education for the purposes of this Act.

SECTION 30. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 31. This Act shall take effect upon its approval, provided that:

(1) Section 29 shall take effect on July 1, 2004;

(2) Sections 2, 3, 4, 5, 6, and 12 shall take effect on July 1, 2006, and shall apply to the 2006-2007 school year; and

(3) Sections 8, 9, 10, 11, 13, 14, 15, and 16 shall take effect on July 1, 2005, and shall apply to the 2005-2006 school year.

INTRODUCED BY:

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