Honorable Robert Bunda

President of the Senate

Twenty-First State Legislature

Regular Session of 2001

State of Hawaii

Sir:

Your Committee on Education, to which was referred S.C.R. No. 120 entitled:

begs leave to report as follows:

The purpose of this measure is to request the Department of Education and Board of Education to identify the full cost of educating federally connected children with disabilities as allowed by the Federal Impact Aid formulas.

Your Committee heard testimony in opposition to the measure from the Department of Education.

Your Committee finds that the Individuals with Disabilities Act can be construed as an underfunded Federal mandate in that the law allows the Federal government to fund up to 40% of special education costs, while Hawaii has traditionally received only 10-12%. The negative ramifications of this severe underfunding are amplified by the even higher expenditures mandated by the Felix Consent Decree. Your Committee finds that, in such a fiscal and legal context, it is imperative that the Legislature and Executive branch act expeditiously to identify and secure all potential sources of funding.

Your Committee further finds that one potential resource could be increased Federal Impact Aid, although in order to request increased funding levels it is necessary first to identify the full cost of educating federally connected children with disabilities as allowed by the Federal Impact Aid formulas.

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. 120 and recommends that it be referred to the Committee on Ways and Means.