REPORT TITLE:
Federal Impact Aid


DESCRIPTION:
Prohibits the amount of federal impact aid received by the DOE
from being considered a reimbursement to the authorized
appropriation in the general or supplemental appropriations acts.
Requires the governor to allow the DOE to add to the department's
budget submission the full amount of impact aid receipts.

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                        
THE SENATE                              S.B. NO.           1244
TWENTIETH LEGISLATURE, 1999                                
STATE OF HAWAII                                            
                                                             
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                   A  BILL  FOR  AN  ACT

RELATING TO FEDERAL AID.



BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

 1      SECTION 1.  In the interest of productivity and efficiency,
 
 2 government agencies require a budget that is sufficient to the
 
 3 execution of their responsibilities.  However, the governor has
 
 4 instituted a budget policy that restricts the ability of agencies
 
 5 to execute their responsibilities in an efficient and effective
 
 6 manner.  When allowed, federal funds are placed in the general
 
 7 fund.  Federal funds should be identified and tracked to ensure
 
 8 that they are used for their intended purpose.  Hawaii's
 
 9 congressional delegation continues to be dissatisfied by the
 
10 State's inability to provide information regarding the use of
 
11 federal funds.
 
12      The federal Transportation Equity Act for the Twenty-first
 
13 Century funds (Fiscal Year 1999 $134,000,000), which are used in
 
14 other jurisdictions for transportation enhancements such as
 
15 sidewalks, acquisition and construction of walking/bike paths,
 
16 and landscaping, have been primarily expended in Hawaii for
 
17 streets and highways and the acquisition of Kaiwi state park.
 
18 Federal impact aid, which should be used for special education,
 
19 has increased substantially in the last few years.  However, in
 

 
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 1 fiscal year 1998, of $25,000,000 in federal impact aid, the
 
 2 governor indirectly diverted nearly $4,000,000 from lower
 
 3 education to fund general government operations.
 
 4      SECTION 2.  Chapter 29, Hawaii Revised Statutes, is amended
 
 5 by adding a new section to be appropriately designated and to
 
 6 read as follows:
 
 7      "§29-     Federal impact aid.  (a)  The amount of federal
 
 8 impact aid received by the department of education shall not be
 
 9 considered a reimbursement to the authorized appropriation in the
 
10 General Appropriations Act or the Supplemental Appropriations
 
11 Act.
 
12      (b)  The governor shall allow the department of education to
 
13 increase the federal fund expenditure ceiling for EDN 100,
 
14 school-based budgeting, by the amount of the federal impact aid
 
15 received by the department of education.
 
16      (c)  The governor shall allow the department of education to
 
17 add to the department's budget submission the full amount of
 
18 impact aid receipts to reduce the student to teacher ratio in
 
19 grades kindergarten to twelve to eighteen students to one
 
20 teacher, and to provide for the increased demand for
 
21 instructional support in special education."
 
22      SECTION 3.  If any provision of this Act, or the application
 
23 thereof to any person or circumstance is held invalid, the
 

 
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                                     S.B. NO.           1244
                                                        
                                                        

 
 1 invalidity does not affect other provisions or applications of
 
 2 the Act which can be given effect without the invalid provision
 
 3 or application, and to this end the provisions of this Act are
 
 4 severable.
 
 5      SECTION 4.  It is the intent of this Act not to jeopardize
 
 6 the receipt of any federal aid nor to impair the obligation of
 
 7 the State or any agency thereof to the holders of any bond issued
 
 8 by the State or by any such agency, and to the extent, and only
 
 9 to the extent, necessary to effectuate this intent, the governor
 
10 may modify the strict provisions of this Act, but shall promptly
 
11 report any such modification with reasons therefor to the
 
12 legislature at its next session thereafter for review by the
 
13 legislature.
 
14      SECTION 5.  New statutory material is underscored.
 
15      SECTION 6.  This Act shall take effect upon its approval.
 
16 
 
17                           INTRODUCED BY:_________________________