STAND. COM. REP. NO. 1577

Honolulu, Hawaii

, 2005

RE: S.B. No. 1643

S.D. 2

H.D. 2

 

 

 

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Third State Legislature

Regular Session of 2005

State of Hawaii

Sir:

Your Committee on Finance, to which was referred S.B. No. 1643, S.D. 2, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO EDUCATION,"

begs leave to report as follows:

The purpose of this bill is to improve public education through the operation of new century charter schools by clarifying and strengthening the laws that govern them. Specifically, this bill:

(1) Improves the new century charter school laws pertaining to their establishment, relationship with the Department of Education (DOE) and DOE schools, weighted student formula, personnel, and accountability;

(2) Creates and appropriates funds for the Task Force on Charter School Governance to identify and recommend to the Legislature revisions to the existing charter school law and to help create an effective framework for overseeing and supporting new and existing charter schools;

(3) Ensures more equitable and stable funding for the basic operations of new century charter schools by:

(a) Establishing and appropriating funds for a per-pupil allocation funding mechanism to be based on the most recently enacted DOE budget;

(b) Requiring that the Charter School Administrative Office's (CSAO) request for general fund appropriations for each school also be based on fringe benefit costs that must be included in the Department of Budget and Finance's annual budget request, and appropriating funds for these fringe benefits;

(c) Requiring the Legislature to make additional appropriations for collective bargaining increases for charter school employee members of collective bargaining units;

(d) Allowing the Legislature to make additional appropriations for workers' compensation benefits; and

(e) Providing charter schools with access to all federal education funds that are received by the State and authorizing CSAO to manage the federal funds;

(4) Allows new century charter school employees to participate in the State's workers' compensation system and appropriating funds as needed, including payment of all previously unpaid workers' compensation claims incurred by new century charter schools;

(5) Ensures compliance with federal regulations under the Individuals with Disabilities Education Act; and

(6) Clarifies the administrative hearing procedures relating to the education of handicapped children.

Waimea Middle School, Waimea Middle School's Local Advisory Panel, Kualapuu Elementary School, Connections Public Charter School, Halau Ku Mana Public Charter School, Hawaii Charter Schools Network, Ho'okako'o Corporation, and many concerned individuals testified in support of this bill. DOE, CSAO, the Hawaii State Teachers Association, and several concerned individuals supported the intent of this measure. The Department of Budget and Finance opposed this bill. The Governor's Administration and Department of Human Resources Development offered comments.

Your Committee has amended this bill by:

(1) Changing the following appropriation amounts to $0:

(a) $75,000 to support the operations of the Task Force on Charter School Governance; and

(b) $39,500,200 for fiscal year 2005-2006 and $45,550,416 for fiscal year 2006-2007 for per-pupil allocations to new century charter schools;

(2) Changing the effective date to July 1, 2010; and

(3) Making technical, nonsubstantive amendments for clarity, consistency, and style, including clarifying the purpose language of parts II and III to reflect the amendments made in the H.D. 1.

As affirmed by the record of votes of the members of your Committee on Finance that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 1643, S.D. 2, H.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 1643, S.D. 2, H.D. 2.

Respectfully submitted on behalf of the members of the Committee on Finance,

 

____________________________

DWIGHT TAKAMINE, Chair