STAND

STAND. COM. REP. NO.890-02

Honolulu, Hawaii

, 2002

RE: S.B. No. 2512

S.D. 2

H.D. 1

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-First State Legislature

Regular Session of 2002

State of Hawaii

Sir:

Your Committees on Education and Labor and Public Employment, to which was referred S.B. No. 2512, S.D. 2, entitled:

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

beg leave to report as follows:

The purpose of this bill is to provide equity to New Century Charter Schools (charter schools) and their teachers by:

(1) Enabling teachers who meet the requirements for regular Department of Education (DOE) teachers and teach at charter schools to receive probationary credit and tenure status and acquire seniority;

(2) Requiring charter schools to receive an allocation based on the total DOE appropriation and projected per-pupil allocation for the current fiscal year, with certain program I.D. appropriations excluded;

(3) Requiring DOE to determine and provide an adequate amount of special education staff and services to charter schools;

(4) Limiting reimbursements by a charter school to DOE for administrative services related to federal grants and subsidies to six and one-half percent of the charter school's federal grants and subsidies;

(5) Establishing deadlines for DOE to provide a charter school's per-pupil allocation each year;

(6) Repealing the cap on the per-pupil allocation to a charter school for special education students at charter schools; and

(7) Repealing the requirement that the Auditor consider the advice of the Superintendent of Education and representatives of charter school boards when determining the per-pupil allocation for charter schools.

The Office of Hawaiian Affairs, American Friends Service Committee, numerous students, teachers, and parents from Halau Lokahi, Waialae, and other charter schools, and concerned individuals submitted testimony in support of this bill. DOE, Hawaii State Teachers Association, Hawaii Association of Charter Schools, and Halau Ku Mana New Century Public Charter School submitted testimony in support of this bill with amendments. Kamehameha Schools submitted testimony in support of the intent of this bill. The Hawaii Government Employees Association and a member of the Board of Education submitted comments on this bill.

This bill takes important steps to ensure that charter schools receive equitable treatment in relation to other public schools. The funding mechanism for charter schools is much different than that for regular charter schools because while most public schools simply receive positions and services consistent with their population and overall needs, charter schools receive a specific amount of funding from the overall DOE appropriation. This has resulted in confusion in determining a fair and reasonable method of allocating funds to charter schools, as their needs must be calculated and budgeted differently than other public schools.

Upon further consideration, your Committees have amended this bill by changing the effective date to July 1, 2050, to facilitate and promote further discussion.

As affirmed by the records of votes of the members of your Committees on Education and Labor and Public Employment that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 2512, S.D. 2, as amended herein, and recommend that it pass Second Reading in the form attached hereto as S.B. No. 2512, S.D. 2, H.D. 1, and be referred to the Committee on Finance.

Respectfully submitted on behalf of the members of the Committees on Education and Labor and Public Employment,

____________________________ SCOTT K. SAIKI, Chair		____________________________ KEN ITO, Chair