STAND. COM. REP. NO. 1962

                                 Honolulu, Hawaii
                                                   , 1999

                                 RE: S.C.R. No. 145
                                     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 S.C.R.
No. 145 entitled:

     "SENATE CONCURRENT RESOLUTION REQUESTING A STUDY OF SPECIAL
     EDUCATION SERVICES TO FEDERALLY CONNECTED CHILDREN,"

begs leave to report as follows:

     The purpose of this concurrent resolution is to request the
Board of Education and the Department of Education to:

     (1)  Identify the full cost of educating federally-connected
          children with disabilities as allowed by the Federal
          Impact Aid formulas, including special education
          programs and equipment, to maximize Impact Aid paid to
          the State;

     (2)  Determine if students are making progress toward
          predetermined goals;

     (3)  Provide a report on how funds were used toward special
          education programs, teacher salaries, and equipment,
          including assistive devices; and

     (4)  Submit findings and recommendations to the Legislature
          prior to the convening of the Regular Session of 2000.

     The Department of Education testified in support of the
measure.


 
 
                                 STAND. COM. REP. NO. 1962
                                 Page 2

 
     Your Committee finds that Hawaii now spends in excess of
$200 million per year to provide services to students with
special needs.  Your Committee also finds that Hawaii is required
to educate a disproportionate share of military dependents who,
by federal law, qualify for a free and appropriate education
because the State is considered to be the only overseas port for
military families with special needs children. 

     Your Committee feels strongly that Hawaii's Congressional
Delegation should be urged to vigorously pursue and obtain:

     (1)  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 v. Waihee
          consent decree; and

     (2)  An increase in the impact aid formula that better
          reflects the true cost of educating federally-connected
          students in Hawaii.

Accordingly, the title and contents of S.C.R. No. 145 have been
deleted and replaced with the contents of H.C.R. No. 8, H.D. 2,
which was heard and passed by your Committee earlier this
Session, and which reflects the above findings and beliefs.
 
     As amended, the new title reads: "REQUESTING HAWAII'S
CONGRESSIONAL DELEGATION TO OBTAIN ADDITIONAL FEDERAL FUNDS FOR
THE EDUCATION OF MILITARY DEPENDENTS."

     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 S.C.R. No. 145,
as amended herein, and recommends that it be referred to the
Committee on Finance in the form attached hereto as S.C.R. No.
145, H.D. 1.

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



                                   ______________________________
                                   KEN ITO, Chair