Report Title:

Education System Reforms

Description:

Creates education finance system linked to student achievement and school complex performance goals; clarifies roles and responsibilities for administration and budgeting of public education system; establishes community collaboration programs; establishes quality school and teacher initiatives, including system of rewards and assistance.

THE SENATE

S.B. NO.

353

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:

PART I. FINDINGS AND PURPOSE

SECTION 1. The legislature finds that Hawaii's public education system is unique amongst the states, in that it is the only public school system in the nation that is administered by the state government. In contrast, school districts in the other forty-nine states are administered by district or county school boards that have varying levels of authority for the setting of district educational policy and funding of educational services. These school districts, known as local education agencies, are to varying degrees monitored by a state education agency, usually an entity primarily concerned with compliance with state education policy and federal education mandates. Yet in Hawaii, the state department of education acts as both the state education agency and the local education agency. Thus, unlike the other states, in Hawaii there is no clear delineation between when the department of education is acting as the state education agency and when it is acting as the local education agency.

The legislature further finds that there continues to be ongoing debate regarding the fragmentation of authority between the board of education and the superintendent, the legislature, and the governor, related to the administration and funding of the public school system. Presently, article X, section 3, of the Hawaii state constitution assigns authority for formulating statewide educational policy as provided by law to the elected board of education, which appoints the superintendent of education as the chief executive officer of the public school system. Article VII, section 2, and section 5, of the Hawaii state constitution assigns to the elected members of the state legislature primary responsibility for raising state revenues to fund state government functions and appropriating such revenues to support these functions. Article V, section 5, of the Hawaii state constitution assigns to the elected governor the primary responsibility for the faithful execution of the laws, including the management of state agencies that execute functions vital to the public education system such as construction and maintenance of school facilities, management of employee payroll and benefits, and allocation of appropriated funds to the department of education. Thus, fixing accountability for many concerns about the public education system is difficult because while all of these functions are critical to the successful operation of the schools, they are controlled by different elected officials.

Further, with the passage of the federal No Child Left Behind Act and the continuing monitoring of special education services under the Felix consent decree, the federal government is now playing a larger role in setting education policy. However, while the federal government has provided some federal funds for these federal mandates, the level of funding provided does not come close to covering the total costs to the State of these mandates. The board of education and the superintendent of education must continuously make requests for additional state funding to meet these federal mandates, while attempting to meet basic needs of the diverse population of public schools that are unique to Hawaii, but not recognized in federal mandates. Thus, the State's public education system is at a crossroads, facing challenges from the federal government related to achieving statewide educational standards and competing with many other state programs for limited resources with which to deliver education services when the legislature and governor are being faced with ongoing fiscal austerity.

During the 2002 interim period, the legislative leadership established a joint senate and house of representatives working group to further discuss and develop recommendations regarding the aforementioned issues, many of which had been raised during the 2002 legislative session. The working group's efforts were primarily focused in four areas: education finance; roles and responsibilities of education stakeholders; community collaboration between the public education system and business partners; and creating a quality school and teaching environment. The working group solicited input from education community stakeholders including the board of education, superintendent of education, principals, teachers, students, university faculty and staff, community college staff, community organizations, and private businesses. The working group also considered current research regarding education finance models and educational "best practices" that have shown positive student achievement within other school districts where these models have been adopted. From this research and discussions amongst the focus areas and within the working group, findings and recommendations in the four focus areas were adopted and, as appropriate, are reflected in this Act.

The purpose of this Act is to: establish a public school finance system organized by school complexes and linked to complex-based student performance goals; more clearly delineate certain roles and responsibilities of the board of education, the superintendent of education, complex administrators, teachers and parents within the state public education system; provide for enhanced partnerships between community-based organizations, private business, and public schools; and establish initiatives to improve the quality of public schools, including enhanced information technology, enhanced staff training, recruitment and retention incentives, and a system of rewards for quality schools and assistance for low performance.

PART II. EDUCATION BUDGET

SECTION 2. Chapter 37, Hawaii Revised Statutes, is amended as follows:

1. By amending section 37-41.5 to read:

"37-41.5 Department of education; carryover of funds. (a) The department of education may retain up to 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] in each school complex 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.

(b) Any appropriation retained in accordance with this section shall be used exclusively for [the school-based budgeting program EDN 100 and the comprehensive school support services program EDN 150,] school complex-based instructional goods and services and of those appropriations allocated to the schools, funds shall remain within the budget of the school to which they were originally allocated; provided that the retention of an appropriation shall not be used by the department as a basis for reducing a school's future budget requirements.

(c) For the purposes of this section, "school complex" means a high school and its geographically contiguous intermediate or middle and elementary schools as defined by the department for instructional, administrative, and organizational purposes."

2. By adding a new section to part V to read:

"37-   General fund; minimum appropriation for education. (a) Beginning with the 2005-2007 fiscal biennium, not less than     per cent of the state general fund shall be appropriated by the legislature in any fiscal year for the statewide education budget. The legislature may appropriate additional general funds beyond this amount, based upon estimates of growth in general fund receipts reported by the director of finance and the council on revenues, to meet increased demands for educational services based upon unanticipated growth in student enrollment, or for public health and safety issues as determined by the board and reported to the governor and the legislature. Any such additional appropriations shall not cause the general fund expenditure ceiling to be exceeded except pursuant to section 37-93.

(b) Beginning with the 2003-2005 fiscal biennium, no reductions or restrictions shall be made by the legislature, the governor, the board of education, or the superintendent of education to general or federal fund appropriations, allotments, or allocations due to the receipt of private grants or donations by an individual public school or school complex. For the purposes of this section, "school complex" means a high school and its geographically contiguous intermediate or middle and elementary schools as defined by the department for instructional, administrative, and organizational purposes."

SECTION 3. Chapter 302A, Hawaii Revised Statutes, is amended as follows:

1. By adding a new section to be appropriately designated and to read:

"302A-   Education finance system; biennial education budget; performance goals. (a) Beginning with the 2003-2005 fiscal year, the board of education shall direct the development and implementation of an integrated financial management system based upon amounts allocated to and expended by each school complex. The integrated financial management system shall link appropriations, allocations, and expenditures to school complex performance goals and shall provide reports on amounts allocated and expended in the following cost centers: administrative, instructional support, and classroom personnel; behavioral health personnel; instructional goods and services; personal services contracts; facilities repair and maintenance projects; and a pro-rata amount for board and state administrative personnel and functions.

(b) Beginning with the 2005-2007 fiscal biennium, the board of education shall direct the development and implementation of a statewide biennial education budget reflecting anticipated financial requirements for each school complex, for the following cost centers: administrative, instructional support, and classroom personnel; behavioral health personnel; instructional goods and services; personal services contracts; facilities repair and maintenance projects; and a pro-rata amount for board and state administrative personnel and functions.

(c) Beginning with the 2005-2007 fiscal biennium, the education budget shall further include for each school complex annual performance goals linked to student achievement of the Hawaii content and performance standards. These performance goals shall be based upon an individual school's achievement of the content and performance standards within their respective school complex. These performance goals shall be measured using statewide student assessments and other indicators of achievement of the goals adopted by each school complex. Beginning with the 2007-2009 fiscal biennium, the education budget shall also include each complex's progress in achieving their annual performance goals."

2. By amending section 302A-101, by adding a definition of "complex-based budget" to be appropriately inserted and to read:

""Complex-based budget" means a budget preparation and execution process that allocates funds for personnel, procurement of instructional goods and services, other personal services contracts, and school facilities repair and maintenance projects displayed by school complex."

3. By amending section 302A-1301 to read:

"[[]302A-1301[]] School system [financial accountability.] administrative overhead; transfer of funds. (a) Beginning with the [1995-1997] 2005-2007 fiscal biennium, the department's administrative expenditures shall not exceed [6.5]     per cent of the total [department operating] education 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,] to each school complex 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."

4. By repealing sections 302A-1201, 302A-1302, 302A-1303, 302A-1306, and 302A-1307.

["[302A-1201] Definitions. For the purposes of sections 302A-1306 to 302A-1309:

"Enrollment" means the number of students registered in the regular public schools, with each regular student and each special student being counted as one.

"Moneys" means funds which are not committed to positions.

302A-1302 School-based budget flexibility. Beginning with the 1995-1997 fiscal biennium, the department shall implement school-based budget flexibility for schools, complexes, and learning support centers. The flexibility shall be limited to the school-based budgeting program EDN 100 of the department for all schools except new century charter schools defined in section 302A-101 and new century conversion charter schools defined in section 302A-1191; provided that beginning in fiscal year 1998-1999, and every year thereafter, the department shall distribute the full appropriation due to a new century charter school or new century conversion charter school pursuant to sections 302A-1185 and 302A-1191, directly to the new century charter school or new century conversion charter school.

[302A-1303] School budget, general fund. The salaries of the superintendent, teachers, office force, and all other employees of the department, and all items of general expense, including books, materials, supplies, and equipment, shall be included in the departmental estimate in such form and detail as the director of finance shall require, together with such statistical and supporting data as the director may request.

[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.

[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 4. Joint Education Finance Task Force. (a) There is established a joint education finance task force (task force), comprised of members of the senate and the house of representatives, and designees from the board of education, the department of education, and the governor's executive administration. The president of the senate and the speaker of the house of representatives, each shall appoint four members from their respective body, including the chair of the senate education committee, the chair of the house lower education committee, the chair of the senate ways and means committee, and the chair of the house finance committee. The board of education shall appoint one member, the superintendent shall appoint two members, and the governor shall appoint one member.

(b) The task force shall convene upon adjournment sine die of the regular session of 2003. The task force shall meet at least once per quarter to discuss issues related to the financing of the kindergarten through grade twelve public education system. The task force shall discuss and make recommendations to the legislature regarding: the need for a dedicated source of state revenues earmarked for the public education system; models of adequate levels of state funding to support student achievement on an equitable basis; and an integrated financial management system to support more efficient and effective use of state, federal, and other funds supporting the public education system.

(c) The task force may request assistance from the superintendent of education, the University of Hawaii college of education, the Hawaii educational policy center, the legislative reference bureau, and other entities with knowledge about state education finance issues.

(d) The task force shall submit an interim report to the legislative leadership, the board of education, and the governor prior to the convening of the 2004 regular session, and a final report prior to the convening of the 2005 regular session.

PART III. ROLES AND RESPONSIBILITIES

SECTION 5. Section 26-53, Hawaii Revised Statutes, is amended to read as follows:

"26-53 Deputies or assistants to department heads. [(a)] Effective January 1, 1989, and January 1, 1990, the salaries of deputies or assistants to the head of any department of the State, other than the department of education, shall be set by the governor within the range from $69,748 to $74,608 and $72,886 to $77,966 a year, respectively.

[(b) Effective January 1, 1989, and January 1, 1990, the salary of the deputy to the superintendent of education shall be $81,629 and $85,302 a year, respectively.]"

SECTION 6. Chapter 302A, Hawaii Revised Statutes, is amended as follows:

1. By adding a new section to be appropriately designated and to read:

"302A-   Parent teacher conferences; parental leave for participation. (a) Any parent of a public school student shall be entitled to be absent from employment twice each school year for a period of not more than two hours to attend a parent teacher conference at the school at which the parent's child is enrolled. No employer shall penalize an employee, nor reduce an employee's usual salary or wages for attending a parent teacher conference with their child's teacher. Presentation of a letter from the principal by an employee to the employer shall constitute proof of attendance by the employee.

(b) The department may adopt rules pursuant to chapter 91 to effectuate this section."

2. By amending the definition of "school complex" in section 302A-101 to read:

""School complex" means a [grouping of schools established] high school and its geographically contiguous intermediate or middle and elementary schools as defined by the department for instructional, administrative, and organizational purposes."

3. By amending section 302A-1101 to read:

"302A-1101 Department of education; board of education; superintendent of education. (a) There shall be a [principal executive department to be known as the] statewide public education system to be administered by a department of education, which shall be headed by an elected policy-making board to be known as the board of education. The board shall have power in accordance with law to formulate statewide educational policy, adopt student performance standards and assessment models, monitor school success, and to appoint the superintendent of education as the chief executive officer of the public school system.

(b) The board shall appoint, and may remove, the superintendent by a majority vote of its members. The salary of the superintendent of education shall be set by the board of education at a rate no greater than $150,000 a year. The superintendent:

(1) May be appointed without regard to the state residency provisions of section 78-1(b);

(2) May be appointed for a term of up to four years; [and]

(3) May be terminated only for cause[.]; and

(4) May appoint a deputy superintendent and assistants to the superintendent at a salary level set by the board of education but not exceeding the superintendent's salary level.

Under policies established by the board, the superintendent shall administer programs of education and public instruction throughout the State, including education at the preschool, primary, and secondary school levels, adult education, school library services, health education and instruction (not including dental health treatment transferred to the department of health), and such other programs as may be established by law.

(c) The board shall invite the senior military commander in Hawaii to appoint a nonvoting military representative to the board, who shall serve for a two-year term without compensation. As the liaison to the board, the military representative shall advise the board regarding state education policies and departmental actions affecting students who are enrolled in public schools as family members of military personnel. The military representative shall carry out these duties as part of the representative's official military duties and shall be guided by applicable state and federal statutes, regulations, and policies and may be removed only for cause by a majority vote of the members of the board."

4. By amending section 302A-1102 to read:

"[[]302A-1102[]] Department of education; statewide and [regional administrative services.] school complex administration. (a) 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 complex-based budget and financial management system for the public schools. The department [may] shall establish [regional administrative] school complex units to provide [administrative support to the schools for] personnel, fiscal, and procurement services[. The regional administrative units may also be assigned responsibility for the administration and operation of special education programs and special schools.] to each school complex."

5. By repealing the definitions of "EDN 100", "regional administrative unit" and "school-based budget flexibility".

[""EDN 100" means the budget program identification number for the school-based budgeting program within the department.

"Regional administrative unit" means a grouping of complexes established by the department for administrative support and organizational purposes.

"School-based budget flexibility" means an operating budget preparation and allocation process that provides maximum flexibility to individual schools, complexes, and learning support centers in the preparation and execution of their operating budgets."]

6. By repealing section 302A-1104.

["[302A-1104] Learning support centers. Beginning with the 1995-1996 school year and until June 30, 1999, school-level support for curriculum and instruction shall be provided through learning support centers to be governed by schools within each complex. The centers shall assist school personnel in the delivery of instructional services by providing support through curriculum development, student assessment, staff development, and resource allocation. The types of services offered and the manner in which these services are provided by the centers, as well as the prioritization and allocation of available resources, shall be determined by policies established by each complex. Any regional administrative units established by the department shall be assigned all administrative functions and provide administrative support to the learning support centers."]

SECTION 7. Chapter 398, Hawaii Revised Statutes, is amended as follows:

1. By amending the chapter title to read:

"FAMILY AND OTHER LEAVE"

2. By designating sections 398-1 to 398-11 as Part I.

3. By adding a new section as Part II to be appropriately designated and to read:

"398-   Parent teacher conferences; parental leave for participation. (a) Any parent of a public school student shall be entitled to be absent from employment twice each school year for a period of not more than two hours to attend a parent teacher conference at the school at which the parent's child is enrolled. No employer shall penalize an employee, nor reduce an employee's usual salary or wages for attending a parent teacher conference with their child's teacher. Presentation of a letter from the principal by an employee to the employer shall constitute proof of attendance by the employee.

(b) The department may adopt rules pursuant to chapter 91 to effectuate this section."

PART IV. COMMUNITY COLLABORATION

SECTION 8. Chapter 302A, Hawaii Revised Statutes, is amended by adding two new sections to be appropriately designated and to read as follows:

"302A-   Community partnerships with public schools. (a) Any individual public school or school complex may participate in a partnership with a community-based organization or private business offering donated instructional goods and services to an individual school or school complex.

(b) No donated instructional goods or services may be received from or used by an individual school or school complex from a community-based organization or private business that advances any religion or that promotes discrimination of a protected class as provided in article X, section 1 of the state constitution.

(c) No reductions or restrictions shall be made by the legislature, the governor, the board of education, or the superintendent of education to general or federal fund appropriations, allotments, or allocations due to the receipt by an individual public school or school complex of donated instructional goods and services.

(d) For purposes of this section "instructional goods or services" means any textbook, video or audiotapes and equipment, computer hardware, computer software, or Internet based curriculum for use in a course of study provided in public schools, and staff professional development.

302A-   Statewide community partnerships coordinating council. (a) There is established within the department of education for administrative purposes, a statewide community partnerships coordinating council. The council shall consist of fifteen members including the chair of the board of education or designee, the superintendent of education or designee, five members from community-based organizations, five members from private business, and one member each representing a high school, an intermediate or middle school, and an elementary school. The council shall select a chair from among its members.

(b) The coordinating council shall serve as a clearinghouse and resource to assist all public schools and school complexes in forming partnerships with community-based and private business organizations. The council shall give first priority to partnerships that will directly impact school performance goals and student achievement of the Hawaii content and performance standards. The council shall work with the superintendent of education to develop and maintain an information database accessible to all public schools about available community resources and partnerships.

(c) On January 1 of each calendar year, the coordinating council shall submit to the board of education, the superintendent of education, and the legislature, an annual report of the activities of the council and data showing the numbers and types of active community partnerships operating within each school complex. The annual report shall also be posted on the department of education's website."

PART V. QUALITY SCHOOLS AND TEACHERS

SECTION 9. Chapter 302A, Hawaii Revised Statutes, is amended by adding four new sections to be appropriately designated and to read as follows:

"302A-   Student access to information technology. Beginning with the 2003-2005 biennium, the superintendent shall develop and implement a systemwide information technology plan to ensure that all public school students will become progressively competent in the use of computer technology as provided in section 302A-1128. The superintendent shall submit to the board of education the information technology plan, including information, by school complex, identifying the current level of financial and staff resources available to implement the plan. Upon review of the plan, the board of education shall include in its education budget any additional resources necessary to implement the plan.

302A-   Recruitment and retention of hard-to-fill classroom teacher positions. (a) The superintendent shall direct the development and implementation of a recruitment and retention incentive program for hard-to-fill classroom teacher positions. The program shall provide for a one-time recruitment bonus upon hiring of the classroom teacher, a one-time bonus upon successful completion of three years of classroom teaching in a hard-to-fill position with the department, and a one-time bonus upon successful completion of five years of classroom teaching in a hard-to-fill position with the department. The superintendent shall determine which teaching positions qualify as hard-to-fill based upon the number of vacant positions and the turnover rate of classroom teachers hired to fill such positions.

(b) The superintendent shall submit to the board of education an annual cost estimate of the numbers of recruitment and retention bonuses that will need to be paid during each school year, and the board shall submit this amount as part of its education budget submission to the governor and the legislature.

302A-   School administrator training academy. (a) The superintendent, in consultation with the community partnerships coordinating council established in section 302A-   , shall develop and implement a school administrator training academy for active and potential school administrators. The coordinating council shall identify as training academy faculty members, representatives from community-based organizations and private businesses interested in donating their knowledge about and experience with successful organizational and business practices.

(b) The training academy shall focus on providing leadership and management skills to assist school administrators in the operation of a school campus and coordination of resources within a school complex. The training shall include, but not be limited to, developing skill sets in the areas of personnel and financial management, procurement, and facilities management.

(c) The superintendent shall annually evaluate participation in the school administrator training academy and submit the evaluation to the community partnerships coordinating council for their review.

302A-   Quality schools and teachers; rewards and assistance. (a) Each individual school and school complex shall be eligible for annual rewards or assistance based upon achievement of their annual performance goals articulated in the biennial education budget. The performance goals shall be linked to student achievement of the Hawaii content and performance standards. These performance goals shall be based upon individual school's achievement of the content and performance standards within their respective school complex. These performance goals shall be measured using statewide student assessments and other indicators of achievement of the goals adopted by each school complex.

(b) The superintendent shall develop a system of rewards and assistance and identify the financial resources necessary to implement the system. Any rewards or assistance provided shall be based upon an evaluation and recommendations by a team of teachers and administrators working within the school complex. Rewards or assistance may be offered to an individual employee, a school, or a school complex.

(c) The superintendent shall submit recommendations for rewards and assistance to the board of education for review. The board shall include as part of the education budget, the amounts required for implementation of the rewards and assistance program. The superintendent shall also consult with the community partnerships coordinating council regarding availability of community resources for rewards and assistance.

(d) For purposes of this section:

"Assistance" means a program of targeted professional development within an individual school or school complex to enhance the knowledge, skills, and abilities of staff to improve student achievement as reflected in the individual school or school complex performance goals.

"Reward" means a monetary or non-monetary recognition of successful student achievement of the individual school or school complex performance goals."

SECTION 10. Chapter 304, Hawaii Revised Statutes, is amended by adding a new section be appropriately designated and to read as follows:

"304-   Council on education data and accountability indicators. (a) There is established a council on education data and accountability (council) to be administratively attached to the University of Hawaii. The council shall include eleven members, including the superintendent or designee, the dean of the college of education or designee, and nine members with experience in the field of education, particularly in the areas of student assessment, system accountability, education finance, and education statistics. The nine members shall be appointed as follows: three by the governor, three by the president of the senate and three by the speaker of the house of representatives. The council members shall serve for a term of four years and may be re-appointed for one additional four-year term.

(b) The purpose of the council is to provide an independent source of information and data analysis regarding successful educational programs and best practices, including but not limited to the areas of student assessment, system accountability, education finance, and education statistics.

(c) The council shall meet on a quarterly basis and submit quarterly and annual reports to the board of education, the governor, and the legislature."

SECTION 11. 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 2003-2004, for personnel and operating expenses of the council on education data and accountability indicators established in section 10 of this Act.

The sum appropriated shall be expended by the University of Hawaii, Hawaii educational policy center, for the purposes of this Act.

PART VI.

SECTION 12. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 13. This Act shall take effect upon its approval, provided that sections 10 and 11 shall take effect on July 1, 2003.

INTRODUCED BY:

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