SB1700 SD1 SSCR503

STAND. COM. REP. NO.503

Honolulu, Hawaii

, 2003

RE: S.B. No. 1700

S.D. 1

Honorable Robert Bunda

President of the Senate

Twenty-Second State Legislature

Regular Session of 2003

State of Hawaii

Sir:

Your Committee on Education, to which was referred S.B. No. 1700 entitled:

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

begs leave to report as follows:

The purpose of this measure is to establish in law a new funding mechanism for the charter schools and to create a charter school education agency to provide administrative oversight of the charter schools.

Testimony in support of this measure was submitted by the Board of Education, Voyager Public Charter School, Ke Kula o Kamakau Charter School, Lanikai Public Charter School, Halau Ku Mana Public Charter School, the Hawaii Business Roundtable, the Hawaii State Teachers Association, and many concerned parents of students enrolled in public charter schools. Testimony in opposition to this measure was submitted by ILWU Local 142. The Hawaii Government Employees Association Local 152 submitted comments.

Your Committee finds that the Legislature authorized the creation of public charter schools to provide students and parents with a choice of educational philosophies and learning environments within the public school system. Your Committee further finds that while many charter schools have been established, the method of determining funding for the schools has been an ongoing challenge, to the extent that it threatens the continuing existence of the public charter schools. Additionally, placing the responsibility for administrative support and oversight of the charters with the Department of Education has only provided an additional burden on the department at a time when it is faced with looming budget cuts and special education requirements that are taxing its infrastructure. Thus, your Committee agrees that in order for the charter schools to succeed, adequate resources and support must be provided to assure that the legislative intent of school choice for Hawaii's students and families is fulfilled. However, your Committee also believes that continuing discussion needs to take place between the appropriate legislative committees, the Department of Education, and the charter schools with regard to certain aspects of this measure, which will result in satisfactory resolution of these issues.

After careful consideration of the testimony presented and continuing discussions with representatives from the charter schools and the Department of Education, your Committee has amended this measure by:

(1) Deleting the per pupil amounts set-out in statute as the basis for legislative appropriations;

(2) Requiring the Legislature to consider the biennium budget request and supplemental budget request of the charter school education agency based upon projected enrollment and a breakdown of general education and special education students;

(3) Requiring the Legislature to appropriate funds based upon the average pupil cost as reported in the Department of Education's consolidated annual financial report for the previous fiscal year;

(4) Delineating that appropriations to the new century conversion charter schools shall include all categories of funding as are provided to the department of education public schools;

(5) Delineating that appropriations to the start-up new century charter schools shall include specific categories of funding, and that special education funding shall be based upon a per pupil weighted count formula implemented by the Department of Education and applied to special education students in the new century charter schools;

(6) Requiring that the allocations of general funds to the charter schools be based upon appropriations by the Legislature to EDN 110, and that these funds may be subject to restrictions or reductions similar to Department of Education public schools;

(7) Establishing a nine-member board of directors as the governing body of the charter school education agency, which is to be attached for administrative purposes only to the Department of Education;

(8) Requiring the executive director of the charter school education agency to consult with the governing board of directors and the local school boards of the charter schools, in providing administrative support to and oversight of the charter schools;

(9) Repealing the existing language of section 302A-1188, Hawaii Revised Statutes, and inserting language delineating the Department of Education's responsibilities to the charter schools with regard to technical assistance, negotiation and purchase of central services, provision of educational and related services to special education students, and providing first right of refusal to the State for assets of charter schools that are dissolved or discontinued;

(10) Making an appropriation for the new century charter schools and new century conversion charter schools;

(11) Requiring the Department of Budget and Finance to make direct allocations of EDN 110 appropriations to the charter schools for the fiscal year 2003-2004, prior to the implementation of EDN 100 and the charter school education agency;

(12) Changing the effective date to May 17, 2054; and

(13) Making technical, nonsubstantive changes for the purposes of clarity and style.

As affirmed by the record of votes of the members of your Committee on Education that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 1700, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 1700, 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,

		____________________________ NORMAN SAKAMOTO, Chair