STAND. COM. REP. NO. 2423

                                   Honolulu, Hawaii
                                                     , 2000

                                   RE:  S.B. No. 2571
                                        S.D. 1




Honorable Norman Mizuguchi
President of the Senate
Twentieth State Legislature
Regular Session of 2000
State of Hawaii

Sir:

     Your Committee on Education and Technology, to which was
referred S.B. No. 2571 entitled: 

     "A BILL FOR AN ACT RELATING TO SCHOOL-BASED BUDGETING,"

begs leave to report as follows:

     The purpose of this bill is to provide public schools
maximum flexibility in expending their budgets and to facilitate
the implementation of school-based budgeting by requiring the
Department of Education to submit to the individual schools and
the legislature, by opening day of each regular session, a report
on its proposed school-by-school budget allocation.

     Testimony in support of the measure was received from Hawaii
Business Roundtable.  Testimony in opposition to the measure was
received from the Department of Education.  Comments on the
measure were received from HGEA-AFSCME.

     Your Committee finds that without information about how
money is being spent at the school level, school communities are
constrained in their current ability to make decisions about how
best to utilize their resources in order to plan and implement
improvements and innovations on a long-term basis.  Consequently,
schools should be allowed to have greater control over their own
budgets, so that there will be clearer and more useful
information on how education moneys are being spent, which can be
used by school communities, policymakers, and the general public.


 
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                                   STAND. COM. REP. NO. 2423
                                   Page 2


     Your Committee amended the measure to clarify the definition
of "school-by-school budgeting" as a process in which the
Department of Education prepares a separate allocation for each
school.

     As affirmed by the record of votes of the members of your
Committee on Education and Technology that is attached to this
report, your Committee is in accord with the intent and purpose
of S.B. No. 2571, as amended herein, and recommends that it pass
Second Reading in the form attached hereto as S.B. No. 2571,
S.D. 1, and be referred to the Committee on Ways and Means.

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



                                   ______________________________
                                   DAVID Y. IGE, Chair

 
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