Report Title:

New Century Charter Schools; Auditor; Allocations

Description:

Requires the DOE to determine the appropriate allocation for new century charter schools and new century conversion charter schools beginning in FY 2003-2004.

THE SENATE

S.B. NO.

1096

TWENTY-SECOND LEGISLATURE, 2003

 

STATE OF HAWAII

 


 

A BILL FOR AN ACT

 

relating to charter schools.

 

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

SECTION 1. The legislature finds that determining allocations for new century charter schools and new century conversion charter schools, as presently required under section 302A-1185, Hawaii Revised Statutes, is an executive branch function that belongs within the executive branch of government. The placement of this executive branch function within the legislative branch of government, specifically the office of the auditor, violates the constitutional doctrine regarding the separation of powers. This long-held doctrine, which can trace its inception back to the signing of the United States constitution in 1787, dictates that the legislative branch of government is not permitted to encroach on the domain or exercise the powers of the executive branch, and vice versa.

The legislature recognizes that a potential conflict of interest arises each and every time the auditor is called upon by the legislature to audit a new century charter school or new century conversion charter school, or the board of education's management of these schools. This position jeopardizes the auditor's independence and ability to conduct impartial assessments under generally accepted government auditing standards. It also undermines the auditor's fairness and impartiality in the eyes of the board of education, the department of education, and the public. Consequently, the purpose of this Act is to require the department of education to determine the appropriate allocation for new century charter schools and new century conversion charter schools beginning in fiscal year 2003-2004.

SECTION 2. Section 302A-1185, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

"(a) New century charter schools shall receive an allocation of state funds based upon the operational and educational funding requirements of the schools; provided that:

(1) Beginning in fiscal year [2001-2002, and every year thereafter, the auditor] 2003-2004, the department shall determine the appropriate allocation based on the total department general fund allocation for EDN 100, 200, 300, and 400 and projected per pupil allocation for the current fiscal year;

(2) Small schools with fewer than one hundred twenty students may be given a state subsidy or small school allotment, as determined by the department, to augment the per pupil allocation given; provided that if additional federal grant moneys are received, the [auditor] department shall determine the appropriate portion of the federal grant moneys to be used to offset the small school allotment; provided further that the federal grant moneys shall not include federal impact aid;

(3) The department may provide a limited start-up and planning grant formulated by the [auditor] department to a charter school upon the issuance of its charter; provided further that the department shall provide appropriate transitional resources to a conversion charter school for its first year of operation as a charter school based on the department's allocation to the school for the year prior to conversion;

(4) The [auditor] department shall take into consideration any changes to the department's budget made by the legislature, the governor, [department-imposed restrictions,] or any applicable collective bargaining negotiated amounts; provided that the [auditor] department shall exclude from the per pupil allocation funds for:

(A) Services that must be provided at the state level;

(B) Specific programs or projects that target individual schools, complexes, or districts;

(C) Grants in aid; and

(D) Resources of new facilities that target specific, new construction projects.

(5) Any new century charter school may enter into an annual memorandum of agreement for centralized services to be provided by the department prior to the beginning of each school year, provided that:

(A) The allocation of the new century charter school shall be reduced in an amount based upon the per pupil amount expended by the department for [such] these services; and

(B) The department may not retain new century charter school funds in excess of the actual cost of the service.

(6) The department shall determine and provide the appropriate level of special education staff and services necessary to ensure that the student's educational needs as indicated in the individualized educational plans are met; and

(7) The [auditor] department shall develop a methodology for allocating funds that can be applied to alternative forms of public schools, including [but not limited to] new century charter schools; and

(8) The [auditor] department shall develop a methodology for allocating funds for conversion charter schools, by basing the allocation for each newly converted school on the EDN 100 and 200 program budgets, and upon written agreement between the conversion charter school's local school board and the department, specified sections of the EDN 300 and 400 program budgets the school received in the year prior to conversion; provided that the allocation may be adjusted to account for any changes that may be made by the legislature, the governor, [department-imposed restrictions,] or applicable collective bargaining negotiated amounts."

SECTION 3. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 4. This Act shall take effect on July 1, 2003.

INTRODUCED BY:

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By Request