STAND. COM. REP. NO. 1604

                                 Honolulu, Hawaii
                                                   , 1999

                                 RE: H.C.R. No. 237
                                     H.D. 1




Honorable Calvin K.Y. Say
Speaker, House of Representatives
Twentieth State Legislature
Regular Session of 1999
State of Hawaii

Sir:

     Your Committee on Education, to which was referred H.C.R.
No. 237 entitled:

     "HOUSE CONCURRENT RESOLUTION REQUESTING THE APPOINTMENT OF A
     TEMPORARY ADVISORY COMMISSION TO RECOMMEND A NEW PROGRAM
     STRUCTURE FOR LOWER EDUCATION THAT IS AN EDUCATION GOALS,
     STUDENT ACHIEVEMENT DRIVEN SYSTEM, WITH A FINANCE COMPONENT
     DESIGNED TO FINANCE THE PROGRAMS AND STRATEGIES REQUIRED TO
     MEET THESE GOALS,"

begs leave to report as follows:

     The purpose of this concurrent resolution is to request the
appointment of a temporary advisory commission to recommend a new
program structure for lower education.

     The Department of Budget and Finance submitted testimony in
general support of the resolution.  

     While concurring with the intent of the resolution, the
Department of Education (DOE) testified that a program structure
should be part of an overall effort at standards-based reform,
and that development of educational accountability should not be
undertaken on a piecemeal basis.

     Your Committee finds that financial information reported by
the DOE about its programs have often been deficient.  In many
cases, expenditures are not matched with educational goals and
objectives, and actual expenditures are not matched with budgeted
amounts.  The Legislature and the public have been frustrated
with the inability of the DOE to provide the kind of financial
information that should be expected from a public agency.

 
                                 STAND. COM. REP. NO. 1604
                                 Page 2

 

     Your Committee has amended the concurrent resolution by:

     (1)  Emphasizing the inadequacy of financial reports made by
          the DOE;

     (2)  Describing "transparent" systems of financial reporting
          that can be achieved by automation;

     (3)  Recognizing the importance of the Hawaii Content and
          Performance Standards and recognizing that a financial
          system must fit into a larger accountability system;

     (4)  Revising the specific objectives of the Advisory
          Commission (Commission);

     (5)  Changing the membership of the Commission from eight to
          five, with members appointed by the Governor and the
          Chairperson of the Board of Education;

     (6)  Stating that it is unclear whether the DOE has an
          appropriate financial structure;

     (7)  Revising the title to emphasize recommendations for a
          financial structure that is coordinated with education
          goals; and

     (8)  Making technical, nonsubstantive revisions for purposes
          style and clarity.

     As affirmed by the record of votes of the members of your
Committee on Education that is attached to this report, your
Committee concurs with the intent and purpose of H.C.R. No. 237,
as amended herein, and recommends that it be referred to the
Committee on Finance, in the form attached hereto as H.C.R. No.
237, H.D. 1.

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



                                   ______________________________
                                   KEN ITO, Chair