STAND. COM. REP. NO. 2565

                                   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 Ways and Means, to which was referred S.B.
No. 2571, S.D. 1, entitled: 

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

begs leave to report as follows:

     The purpose of this bill is to give each school maximum
flexibility in the execution of its budget by mandating "school-
by-school budgeting" for the Department of Education.

     Specifically, this bill:

     (1)  Defines "school-by-school budgeting" to mean a process
          in which the Department of Education prepares a
          separate allocation for each school, and each school is
          given maximum flexibility in the execution of its
          budget;

     (2)  Amends the definition of "school-based budget
          flexibility" by repealing the element that provides
          flexibility to individual schools, complexes, and
          learning support centers in the preparation (as opposed
          to the execution) of their operating budgets;

     (3)  Requires the Department of Education to prepare and
          report to the individual schools and the Legislature, a
          budget for each school based on the budget submitted to

 
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                                   STAND. COM. REP. NO. 2565
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          the Legislature by the Governor, beginning with budget
          preparation for fiscal biennium 2001-2003;

     (4)  Requires the Department of Education to submit the
          proposed school-by-school budget to the individual
          schools and the Legislature by the opening day of each
          legislative session;

     (5)  Specifies the minimum content of the Department of
          Education's annual school-by-school budgeting report,
          beginning with the Regular Session of 2001;

     (6)  Requires each school to submit expenditure reports to
          the Department of Education for the previous fiscal
          year, prior to the beginning of each school year;

     (7)  Requires the Department of Education to collect these
          expenditure reports and to submit them to the
          Legislature within thirty days after the beginning of
          the school year; and

     (8)  Requires each school to be given maximum flexibility
          over the funds designated to the school, to the extent
          allowed for each type of funding.

     As affirmed by the record of votes of the members of your
Committee on Ways and Means that is attached to this report, your
Committee is in accord with the intent and purpose of S.B. No.
2571, S.D. 1, and recommends that it pass Third Reading.

                                 Respectfully submitted on behalf
                                 of the members of the Committee
                                 on Ways and Means,



                                 ________________________________
                                 CAROL FUKUNAGA, Co-Chair



                                 ________________________________
                                 ANDREW LEVIN, Co-Chair

 
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