STAND. COM. REP. NO. 234-00

                                 Honolulu, Hawaii
                                                   , 2000

                                 RE: H.B. No. 2493
                                     H.D. 1




Honorable Calvin K.Y. Say
Speaker, House of Representatives
Twentieth State Legislature
Regular Session of 2000
State of Hawaii

Sir:

     Your Committee on Education, to which was referred H.B. No.
2493 entitled:

     "A BILL FOR AN ACT RELATING TO NEW CENTURY CHARTER SCHOOLS,"

begs leave to report as follows:

     The purpose of this bill is to require the Superintendent of
Education, rather than the Auditor, to determine the appropriate
allocation of state general funds to new century charter schools
based upon the operational and educational funding requirements
of the schools, beginning in fiscal year 2000-2001.

     Your Committee received testimony in support of this bill
from the Department of Education and the Hawaii State Teachers
Association.

     Your Committee finds that this bill is necessary in order to
prevent the budget shortfall that would occur based upon the
current method of public charter school allocation being
developed by the Auditor.  The law currently requires the
allocation of state general funds to new century charter schools
to be based upon the operational and educational funding
requirements of the schools, without regard to fiscal
constraints.  Since other public schools are not funded on the
basis of their operational and educational funding requirements
because of fiscal constraints, the law essentially requires new
century charter schools to be funded at the expense of these

 
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other schools.  To prevent this gross inequity, the Legislature
could:

     (1)  Fund all public schools, including new century charter
          schools, on the basis of their operational and
          educational funding requirements; or

     (2)  Allow the Superintendent of Education to determine the
          appropriate allocation of state general funds to new
          century charter schools.

     Your Committee has amended this bill by:

     (1)  Clarifying that the stated purpose of this bill is to
          require the Superintendent of Education, rather than
          the Auditor, to determine the appropriate allocation of
          state general funds to new century charter schools
          based upon the operational and educational funding
          requirements of the schools, beginning in fiscal year
          2000-2001; and

     (2)  Making a technical nonsubstantive change for purposes
          of style.

     As affirmed by the record of votes of the members of your
Committee on Education that is attached to this report, your
Committee is in accord with the intent and purpose of H.B. No.
2493, as amended herein, and recommends that it pass Second
Reading in the form attached hereto as H.B. No. 2493, H.D. 1, and
be referred to the Committee on Finance.

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



                                   ______________________________
                                   KEN ITO, Chair

 
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