Honorable Robert Bunda

President of the Senate

Twenty-First State Legislature

Regular Session of 2002

State of Hawaii

Sir:

Your Committees on Education and Transportation, Military Affairs and Government Operations and Judiciary and Ways and Means, to which was referred S.B. No. 2102 entitled:

beg leave to report as follows:

The purpose of this measure is to propose amendments to the state constitution to:

On February 12, 2002, this measure was originally heard by your Committees on Education and Transportation, Military Affairs and Government Operations and Judiciary. At that hearing, your Committees received testimony commenting on this measure from the Department of Budget and Finance, Office of Information Practices, Hawaii State Teachers Association, and Hawaii Business Roundtable. Testimony opposing this measure was received from the Board of Education and Hawaii Government Employees Association-AFSCME, Local 152, AFL-CIO.

Thereafter, this measure was re-referred to jointly include the members of your Committee on Ways and Means. Having already been subjected to a public hearing, your Committees conducted decision-making on this measure as described herein.

Your Committees find that the governance structure of Hawaii's public education system is ripe for innovative restructuring. The cracks in its foundation have remained in a state of disrepair for too long manifesting systemic problems including difficulties in complying with federal requirements such as the Individuals with Disabilities Education Act and the Felix Consent Decree, continuous labor disputes with teacher unions, teacher shortages, backlogs in school repair and maintenance, audit reports continually identifying ineffectiveness and inefficiencies, and, most importantly, loss of public confidence in the entire education system.

The current governance structure of Hawaii's public education system consists of a statewide elected board of education. Your Committees find that other organizational structures need to be considered at this time to ensure the integrity and quality of the public education system. Particularly, an enumeration of boards of education throughout the State to represent and govern local or district areas may provide the benefit of a governing body that is more accessible, responsive, and accountable to the needs of the community within its jurisdiction. Your Committees find that decentralizing the administration of Hawaii's public education system in this manner would lead to improved accountability, efficiency, and effectiveness of Hawaii's public education system.

Your Committees have amended this measure by replacing its contents with provisions that propose amendments to the state constitution that change the governing structure of the public education system by:

Your Committees note that Senate Bill No. 3018, S.D. 1, provides for the establishment of the seven educational districts to be governed by the district boards of education and, thereby, accompanies this measure.

Your Committees further recognize that the restructuring of Hawaii's public education system requires serious consideration and understand that this measure deserves further scrutiny as it proceeds through the legislative process. However, your Committees are optimistic that further deliberation over the ideas proposed by this measure will eventually lead to positive changes to Hawaii's public education system.

As affirmed by the records of votes of the members of your Committees on Education and Transportation, Military Affairs and Government Operations and Judiciary and Ways and Means that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 2102, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 2102, S.D. 1, and be placed on the calendar for Third Reading.