STAND. COM. REP. NO. 1606

                                 Honolulu, Hawaii
                                                   , 1999

                                 RE: H.C.R. No. 8
                                     H.D. 2




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. 8, H.D. 1, entitled: 

     "HOUSE CONCURRENT RESOLUTION REQUESTING THE DEPARTMENT OF
     EDUCATION, THE BOARD OF EDUCATION, THE DEPARTMENT OF BUDGET
     AND FINANCE, HAWAII'S CONGRESSIONAL DELEGATION, PARENTS OF
     FEDERALLY-CONNECTED STUDENTS, AND FACULTY OF THE AFFECTED
     SCHOOLS, TO WORK COOPERATIVELY IN THE MANAGEMENT OF SCHOOLS
     EDUCATING FEDERALLY-CONNECTED CHILDREN,"

begs leave to report as follows:

     The purpose of this concurrent resolution is to request the
Department of Education, the Board of Education, the Department
of Budget and Finance, Hawaii's Congressional Delegation, parents
of federally-connected children, and faculty of affected schools
to work cooperatively to:

     (1)  Increase the amount of Federal Impact Aid awarded to
          Hawaii;

     (2)  Seek alternative funding sources for the education of
          federally-connected special needs students; 

     (3)  Determine how such moneys are disbursed;

     (4)  Examine ways to direct Federal Impact Aid moneys to the
          affected schools, instead of the State general fund;
          and


 
 
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     (5)  Ensure that parents of federally-connected children
          have ready access to information regarding the public
          school education of their children, with a focus on
          specific ways these parents can become involved in the
          decision-making process.

     The Department of Education (DOE) testified in support of
the intent of the measure.  The Department of Budget and Finance
(B&F) testified that Impact Aid funds are a reimbursement to the
State, and that they are not deposited to the state general fund
but retained by the DOE for general educational expenses.  Both
DOE and B&F noted that, historically, the DOE has used the Impact
Aid funds for teacher salaries and fringe benefits for regular
and special education teachers.

     Your Committee finds that, because Hawaii is required to
educate a disproportionate share of military dependents who, by
federal law, qualify for free and appropriate education, efforts
to increase the Impact Aid level of funding are crucial.

     Your Committee has amended this concurrent resolution by:

     (1)  Deleting the contents of the resolution and replacing
          it with language that requests Hawaii's Congressional
          Delegation to vigorously pursue and obtain:

          (a)  An increase in federal funding for the education
               of military dependents in Hawaii's schools who
               have special needs to cover the total cost of
               services required under federal laws and the Felix
               consent decree; and

          (b)  An increase in the Impact Aid formula that better
               reflects the true cost of educating federally-
               connected students in Hawaii;

     (2)  Providing that certified copies of the resolution be
          transmitted to members of Hawaii's Congressional
          Delegation, the Governor, the Chairperson of the Board
          of Education, the Superintendent of Education, and the
          Director of Health; and

     (3)  Amending the title to read:  "REQUESTING HAWAII'S
          CONGRESSIONAL DELEGATION TO OBTAIN ADDITIONAL FEDERAL
          FUNDS FOR THE EDUCATION OF MILITARY DEPENDENTS." 


 
 
 
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     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. 8,
H.D. 1, as amended herein, and recommends that it be referred to
the Committee on Finance, in the form attached hereto as H.C.R.
No. 8, H.D. 2.

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



                                   ______________________________
                                   KEN ITO, Chair