1



         1                  SENATE/HOUSE OF REPRESENTATIVES

         2                        THE 21ST LEGISLATURE

         3                          INTERIM OF 2001

         4   

         5   

         6   

         7         JOINT SENATE-HOUSE INVESTIGATIVE COMMITTEE HEARING

         8                         November 10, 2001

         9                                  

        10                                  

        11                                  

        12         Taken at the State Capitol, 415 South Beretania,  

        13       Conference Room 325, Honolulu, Hawaii, commencing at 

        14             9:06 a.m. on Saturday, November 10, 2001.

        15                                  

        16                                  

        17                                  

        18                                  

        19              BEFORE:   JESSICA R. PERRY, CSR No. 404

        20   

        21   

        22   

        23   

        24   

        25   



                            RALPH ROSENBERG COURT REPORTERS
                     OFC:  (808) 524-2090     FAX:  (808) 524-2596


                                                                         2



         1   APPEARANCES:

         2   

         3   Senate-House Investigative Committee:

         4             Co-Chair Senator Colleen Hanabusa

         5             Co-Chair Representative Scott Saiki

         6             Vice-Chair Senator Russell Kokubun

         7             Vice-Chair Representative Blake Oshiro

         8             Senator Jan Yagi Buen

         9             Representative Ken Ito

        10             Representative Bertha Kawakami

        11             Representative Bertha Leong

        12             Representative Barbara Marumoto              

        13             Senator Norman Sakamoto

        14             Senator Sam Slom

        15   

        16   

        17   Also Present:            

        18             Special Counsel James Kawashima

        19   

        20   

        21   

        22   

        23   

        24   

        25   



                            RALPH ROSENBERG COURT REPORTERS
                     OFC:  (808) 524-2090     FAX:  (808) 524-2596


                                                                         3



         1                             I N D E X

         2   WITNESS:  PATRICIA HAMAMOTO

         3   EXAMINATION BY:                                      PAGE

         4               SPECIAL COUNSEL KAWASHIMA..............  5, 116

         5               VICE-CHAIR REPRESENTATIVE OSHIRO.......  67, 125

         6               VICE-CHAIR SENATOR KOKUBUN.............  71, 123

         7               REPRESENTATIVE ITO.....................  76, 130

         8               SENATOR BUEN...........................  79, 127

         9               REPRESENTATIVE KAWAKAMI................  83, 132

        10               SENATOR SLOM...........................  89, 129

        11               REPRESENTATIVE LEONG...................  94, 137

        12               SENATOR SAKAMOTO.......................  97, 124

        13               REPRESENTATIVE MARUMOTO................  101

        14               CO-CHAIR SENATOR HANABUSA..............  106, 133

        15               CO-CHAIR REPRESENTATIVE SAIKI..........  112, 138

        16   

        17   

        18   

        19   

        20   

        21   

        22   

        23   

        24   

        25   



                            RALPH ROSENBERG COURT REPORTERS
                     OFC:  (808) 524-2090     FAX:  (808) 524-2596


                                                                         4



         1                       P R O C E E D I N G S

         2                  CO-CHAIR REPRESENTATIVE SAIKI:   Good morning.  

         3   We'd like to convene our joint investigative committee to 

         4   investigate the state's efforts to comply with the Felix 

         5   consent decree.  We'll begin with roll call.

         6                  CO-CHAIR SENATOR HANABUSA:  Co-Chair Saiki?

         7                  CO-CHAIR REPRESENTATIVE SAIKI:  Present.

         8                  CO-CHAIR SENATOR HANABUSA:  Vice-Chair 

         9   Kokubun?

        10                  VICE-CHAIR SENATOR KOKUBUN:  Here.

        11                  CO-CHAIR SENATOR HANABUSA:  Vice-Chair Oshiro?

        12                  VICE-CHAIR REPRESENTATIVE OSHIRO:  Here.

        13                  CO-CHAIR SENATOR HANABUSA:  Senator Buen?

        14                  SENATOR BUEN:  Here.  

        15                  CO-CHAIR SENATOR HANABUSA:  Representative 

        16   Ito?

        17                  REPRESENTATIVE ITO:  Here.

        18                  CO-CHAIR SENATOR HANABUSA:  Representative 

        19   Kawakami?

        20                  REPRESENTATIVE KAWAKAMI:  Here.

        21                  CO-CHAIR SENATOR HANABUSA:  Representative 

        22   Leong?

        23                  REPRESENTATIVE LEONG:  Here.

        24                  CO-CHAIR SENATOR HANABUSA:  Representative 

        25   Marumoto?



                            RALPH ROSENBERG COURT REPORTERS
                     OFC:  (808) 524-2090     FAX:  (808) 524-2596


                                                                         5



         1                  REPRESENTATIVE MARUMOTO:  Here.

         2                  CO-CHAIR SENATOR HANABUSA:  Senator Matsuura 

         3   is excused.  Senator Sakamoto?

         4                  SENATOR SAKAMOTO:  Yes, ma'am.  

         5                  CO-CHAIR SENATOR HANABUSA:  Senator Slom?

         6                  SENATOR SLOM:  Here.

         7                  CO-CHAIR SENATOR HANABUSA:  We have quorum.

         8                  CO-CHAIR REPRESENTATIVE SAIKI:   Members, our 

         9   first witness is Ms. Patricia Hamamoto, who is already seated 

        10   at the witness table.  We'll administer the oath at this 

        11   time.

        12                  CO-CHAIR SENATOR HANABUSA:  Ms. Hamamoto, do 

        13   you solemnly swear or affirm that the testimony you're about 

        14   to give will be the truth, the whole truth, and nothing but 

        15   the truth?

        16                  MS. HAMAMOTO:  Yes, I do.

        17                  CO-CHAIR SENATOR HANABUSA:  Thank you very 

        18   much.

        19             Members, we'll follow our usual procedure.  We'll 

        20   begin with Mr. Kawashima.

        21                  SPECIAL COUNSEL KAWASHIMA:  Thank you, Madam 

        22   Chair.

        23                            EXAMINATION

        24   BY SPECIAL COUNSEL KAWASHIMA:  

        25        Q.   Please state your name and business address.



                            RALPH ROSENBERG COURT REPORTERS
                     OFC:  (808) 524-2090     FAX:  (808) 524-2596


                                                                         6



         1        A.   Patricia Hamamoto, 1309 Miller Street, Honolulu,  

         2   96804 -- 13.

         3        Q.   Ms. Hamamoto, I noticed just before you started you 

         4   wanted to say something.  Please go ahead.

         5        A.   Yes, I would.  I'd like to share with the 

         6   committee -- and good morning, first and foremost, but I'd 

         7   like to share with the representatives and the senators my 

         8   position in relationship to a contextual understanding of 

         9   where we are.  Prior to two weeks ago or three weeks ago, I 

        10   was the deputy superintendent, and as we all know due to 

        11   circumstances that I am now the superintendent.  While I 

        12   realize that I was part of the previous administration and 

        13   there were concerns and problems that may have arose, I 

        14   understand when I literally get up to base or I get up to the 

        15   top position right now, the buck not only stops with me but I 

        16   also understand that in so doing my job is also to fix the 

        17   problems that may have occurred in previous administration, 

        18   and that is not a problem about fixing it, and perhaps being 

        19   part of the past administration allows me to understand how 

        20   those problems arose and what needs to be done. 

        21             I would also like to share with you at this time my 

        22   personal philosophy regarding my position as a -- first and 

        23   foremost an educator and now in this particular job that I 

        24   do, but more importantly the trust that the public has put in 

        25   me not only to take charge for the care and for the welfare 



                            RALPH ROSENBERG COURT REPORTERS
                     OFC:  (808) 524-2090     FAX:  (808) 524-2596


                                                                         7



         1   as well as the future of the state of Hawaii is very 

         2   important to me, and I take my job very seriously.  If 

         3   there's one hallmark that I would like this administration to 

         4   be known with is, number one, that we are first and foremost 

         5   an administration that not only believes and practices 

         6   integrity but we do all we can to ensure that what we have 

         7   for the future of Hawaii is what you, the legislature, the 

         8   governor, and the policymakers, including the Board of 

         9   Education, wants for Hawaii. 

        10             In that sense, whatever we do under my 

        11   administration and anything that I have to be responsible 

        12   for, very simply put, is subject to audit.  In other words, 

        13   it is open.  If you have questions, we will be able to answer 

        14   it, we should be, and if we are unable to, then it is our 

        15   obligation to find out why and to correct anything that we 

        16   see that is wrong.  And with that, thank you very much for 

        17   allowing me this time to express a part of me.  Thank you.

        18        Q.   Thank you, Ms. Hamamoto.  You are currently the 

        19   interim superintendent of education --

        20        A.   Yes.

        21        Q.   -- for the Department of Education, state of 

        22   Hawaii, are you not?

        23        A.   Yes.

        24        Q.   Now, perhaps you can recount for us briefly, 

        25   Ms. Hamamoto, your educational background after secondary 



                            RALPH ROSENBERG COURT REPORTERS
                     OFC:  (808) 524-2090     FAX:  (808) 524-2596


                                                                         8



         1   level. 

         2        A.   University -- well, at the time it was State 

         3   College -- State College California, State University now, 

         4   Long Beach.  I got my professional diploma there and began 

         5   working on my master's there.  Got involved in teaching, then 

         6   moved back to Hawaii as a single parent.  Could not get into 

         7   education for a couple years at that time so did various and 

         8   sundry jobs primarily in hotel, hospitality, and travel 

         9   industry.  Then federal funds became available through the 

        10   department at which time I entered as a teacher and have 

        11   been.  Again, when federal funds started to get goofy and 

        12   your positions are temporary, I began to look at 

        13   administration and started to work on my master's there. 

        14             So I have my professional diploma as well as my 

        15   professional administrative certificate from the Department 

        16   of Education vis-a-vis the University of Hawaii.  I've been 

        17   in administration since 1982.  I have been at -- vice 

        18   principal at Maui High School, Nanakuli High and 

        19   Intermediate.  Principalship was at Pearl City Highlands 

        20   Elementary.  I did about two and a half years as a personnel 

        21   specialist with labor relations in the Department of 

        22   Education, and then my -- before becoming deputy, at McKinley 

        23   High School for nine years, principal of McKinley High School 

        24   for nine years.

        25        Q.   Thank you.  Now, your master's at Long Beach State, 



                            RALPH ROSENBERG COURT REPORTERS
                     OFC:  (808) 524-2090     FAX:  (808) 524-2596


                                                                         9



         1   what was it in?

         2        A.   No, I didn't finish it, sir.  I began it.  It was 

         3   going to be in content area, history major.

         4        Q.   So when you received your master's at the 

         5   University of Hawaii, then, what was that in?

         6        A.   That would have been in geography, also a content 

         7   area.  I have the thesis on Chinatown and the identification 

         8   and the sense of place in Chinatown, and as I began working 

         9   on my final thesis, I got into administration and got 

        10   side-tracked by being an administrator.

        11        Q.   All right.  How many years did you teach, then?

        12        A.   A total teaching time in California and Hawaii, 

        13   approximately -- close to 15 years, just about 15 years.

        14        Q.   And you say you got into administration in 1982, 

        15   about, almost 20 years ago?

        16        A.   Yes.

        17        Q.   And you were, though, the principal at McKinley 

        18   for, you say, nine years?

        19        A.   From '91 to '99, eight years.

        20        Q.   And did you go from McKinley directly to become 

        21   deputy superintendent?

        22        A.   Yes.

        23        Q.   Now, if I may, as deputy superintendent for almost 

        24   two years, what types of duties did you have?

        25        A.   When I assumed the responsibility, I realized that 



                            RALPH ROSENBERG COURT REPORTERS
                     OFC:  (808) 524-2090     FAX:  (808) 524-2596


                                                                        10



         1   it's -- the job description requires me to deal mainly with 

         2   day-to-day operations should they become a problem.  I dealt 

         3   primarily with student discipline from the schools.  That 

         4   would be the implementation of our Chapter 19 for due process 

         5   for students that were suspended for more than ten days.  

         6   That would be the most -- that was one of my priorities, and 

         7   I found out very quickly when I assumed the position that 

         8   Felix and the Felix consent decree and compliance to the 

         9   Felix consent decree was going to be the first and foremost 

        10   duty that I was responsible for. 

        11             For the first -- from '99, March or February, 

        12   through the contempt order, which was in June of 2000, the 

        13   department had its team of specialists and Dr. Houck who took 

        14   care of what happened on a day-to-day basis, and the 

        15   decision-making in relationship to myself would be only if 

        16   and when there were problems that arose that needed someone 

        17   of a higher level that sat in the deputy's position, but for 

        18   the most part the programs were flowing, the meetings were 

        19   occurring, and the department was, quote, rolling along. 

        20             In the 2000 -- 2000, June, when we went back to the 

        21   court and the contempt order came upon us, the department 

        22   took a position that if we were going to meet the contempt 

        23   order and continue to move and to become compliant, we would 

        24   need to step up our efforts, and at that point many of the 

        25   duties and responsibilities for the response to the Felix 



                            RALPH ROSENBERG COURT REPORTERS
                     OFC:  (808) 524-2090     FAX:  (808) 524-2596


                                                                        11



         1   contempt order became my responsibility.

         2        Q.   I see.  Now, initially, when you gave us some of 

         3   your comments, you mentioned the fact that you would support 

         4   audits?

         5        A.   Yes.

         6        Q.   In fact, you have already proved that by the audit 

         7   that you -- I understand that you ordered that Mr. Koyama 

         8   perform earlier this year.  Is that a correct statement, that 

         9   it was your decision?

        10        A.   Yes, it was my decision.

        11        Q.   And I assume that you got the concurrence of the 

        12   superintendent, but primarily it was your decision to have 

        13   the audit run of the Felix response plan?

        14        A.   Yes, it was.

        15        Q.   So that Mr. Koyama, as far as his instructions were 

        16   concerned, took instructions from you in that regard?

        17        A.   Yes.  Mr. Koyama is attached to the 

        18   superintendent's office, and those individuals attached to 

        19   the superintendent's office are primarily responsible for me, 

        20   and let me qualify when I say primarily, while I -- they 

        21   report to me and we do their everyday operations, it does not 

        22   preclude the superintendent from meeting with them and/or 

        23   directing them in whichever program he feels is important at 

        24   the time.

        25        Q.   Now, from his report I could not tell necessarily 



                            RALPH ROSENBERG COURT REPORTERS
                     OFC:  (808) 524-2090     FAX:  (808) 524-2596


                                                                        12



         1   when you asked Mr. Koyama to conduct this financial audit.  

         2   When was that about, if you recall?

         3        A.   I want -- I want to start thinking end of February, 

         4   March.

         5        Q.   And why was it in the end of February or early 

         6   March that you believe that such an audit was necessary?

         7        A.   There were several issues that bore -- well, came 

         8   to mind for consideration.  Every two weeks I was receiving a 

         9   document from our accounting office of the monies that were 

        10   allocated, that I was approving, allocated, and what was 

        11   being expended, and the expenditures weren't keeping up with 

        12   what was being allocated. 

        13             So in my mind people were getting paid, programs 

        14   were being run, but something wasn't coming out on paper, and 

        15   because it didn't click I needed to find out what was going 

        16   on, where was that money going, and if they were being -- the 

        17   result would be, first of all, find out where was that money 

        18   going, because it was specifically designed for the contempt 

        19   order.  It was not designed for other Felix issues, it was 

        20   not designed for other programs, and because this -- we would 

        21   be asking -- it was the emergency appropriation.  I wanted to 

        22   be sure that we would be able to track that money very 

        23   diligently so when it wasn't coming out, I wasn't going to 

        24   wait until June when the fiscal year ended and find out. 

        25             I wanted to, first of all, find out what was going 



                            RALPH ROSENBERG COURT REPORTERS
                     OFC:  (808) 524-2090     FAX:  (808) 524-2596


                                                                        13



         1   on, and, number two, that if they weren't being charged to 

         2   the correct program, then we needed to ensure that they were.  

         3   We also needed to take corrective action, and then what kinds 

         4   of things could we do in the future that would not allow this 

         5   to happen again.  So I had very specific purposes under 

         6   consideration in what was going on and why.

         7        Q.   By the way, before the financial audit was actually 

         8   ordered by you for Mr. Koyama to complete, did you discuss 

         9   the matter with the superintendent?

        10        A.   Yes.

        11        Q.   And he concurred in your decision to go forward 

        12   with that audit?

        13        A.   Yes.

        14        Q.   Let me ask you, during the last legislative session 

        15   there were a number of questions raised about Felix-type 

        16   expenditures, about segregating out those type of 

        17   expenditures, and whether it could be done or not.  Would 

        18   that have been, perhaps, one of the reasons why you also 

        19   needed to know the things that came out of this audit?

        20        A.   Yes, because I realized that -- one of the end 

        21   results is that we would need to answer to the legislature on 

        22   how the money was spent, and we needed to ensure that it was 

        23   spent properly.  So yes, and I've gone through three 

        24   legislative sessions and it seems that, you know, we -- when 

        25   we're asked what did we spend, the department puts forth what 



                            RALPH ROSENBERG COURT REPORTERS
                     OFC:  (808) 524-2090     FAX:  (808) 524-2596


                                                                        14



         1   we budgeted or what we allocated, but what I think is being 

         2   asked is I know what you budgeted, but what did you spend, 

         3   and so we need to take a look at how we explain out what we 

         4   do.

         5        Q.   Sure.  I think you've noticed that one of the goals 

         6   of the committee, as the questions have been asked of the 

         7   various witnesses, was exactly what you point out here.  I 

         8   think you share that concern, do you not?

         9        A.   I do.

        10        Q.   Now, were you surprised by the findings of 

        11   Mr. Koyama's audit?

        12        A.   Not surprised.  I'm glad that he was able to 

        13   pinpoint.  I think these are -- they -- through the course of 

        14   time and observing what happens in the processes that go on 

        15   and the procedures, you have an idea that this is happening.  

        16   What you don't know is exactly for sure and you don't have 

        17   the data that specifically says here, here, and here.  So 

        18   what Mr. Koyama did is he validated what we thought and he 

        19   ensured that these were areas that needed more attention. 

        20        Q.   And as far as the various recommendations -- I 

        21   should say findings, there were a number of findings, am I to 

        22   understand, then, that you as the -- since you are head of 

        23   the department are working on those findings?

        24        A.   Yes.  Those that we found that needed to be 

        25   corrected that we could do, we did.  There were funds that 



                            RALPH ROSENBERG COURT REPORTERS
                     OFC:  (808) 524-2090     FAX:  (808) 524-2596


                                                                        15



         1   were returned to the program.  That's one finding that we 

         2   had.  The journal vouchers to ensure that they were charged 

         3   to the correct accounts were also taken care of, and those 

         4   that we were unable -- because at the end of the -- two 

         5   things were occurring when it ended.  We were closing out the 

         6   fiscal year, so we had to do that for the department, 

         7   vis-a-vis the individual schools in the district, as well as 

         8   we were trying to correct those areas from the audit.  So 

         9   many things were going on at that time, so a lot of the 

        10   things we corrected, a lot of the things we were working on, 

        11   and we were also working on the process by which we could 

        12   have a check.  We need checkpoints or how to monitor and 

        13   check to see that what we're spending is being spent in the 

        14   proper program ID.

        15        Q.   Good.  I believe you would agree that Mr. Koyama 

        16   did an actually very good -- excellent job in completing the 

        17   audit.  It looks like he needs help, though?

        18        A.   He has, and his frustration was the fragmentation 

        19   that everything is separated out, and that's what we also 

        20   share.  And what we're looking at is in the process of giving 

        21   or making us user friendly so people know what it is we're 

        22   doing and we know what we're doing, the process of the 

        23   dialogue and how do we ensure that the process are integrated 

        24   and yet at the same time how do we track separately is more 

        25   than just a dialogue, but it's actually a work in progress 



                            RALPH ROSENBERG COURT REPORTERS
                     OFC:  (808) 524-2090     FAX:  (808) 524-2596


                                                                        16



         1   right now.

         2        Q.   Actually, I was referring to his staff of one that 

         3   he has.

         4        A.   Yes, that too.  We have to do a lot of juggling 

         5   or --

         6        Q.   Sure.

         7        A.   -- working at his priorities.

         8        Q.   Ms. Hamamoto, one of Mr. Koyama's findings was, 

         9   quote, There are concerns about the performance of Columbus 

        10   Educational Services and about the quantity of candidates 

        11   being presented to the DOE for hire, end quotes.

        12        A.   Yes.

        13        Q.   Were you involved with the -- retention may be the 

        14   word or the contracting with Columbus?

        15        A.   Yes.

        16        Q.   To what extent?

        17        A.   When we came out of the contempt order -- well, 

        18   that court and we looked at our new benchmarks, we realized 

        19   that there were some stringent expectations and court 

        20   mandates that required the department to take measures that 

        21   it had not considered before.  While it had been discussed in 

        22   the presence of the court monitor and the court master and 

        23   the plaintiffs and it had been brought up in court about the 

        24   department's recruitment and retention efforts, the 

        25   department has always looked at, you know, finding our own 



                            RALPH ROSENBERG COURT REPORTERS
                     OFC:  (808) 524-2090     FAX:  (808) 524-2596


                                                                        17



         1   and hiring our own employees, and so we've been putting 

         2   things of that nature -- those discussions off to the side, 

         3   and it finally ended up in a court order because the 

         4   department was -- perhaps reluctant would be the proper word, 

         5   to go outside to hire a recruiting firm. 

         6             So in that process, when it came out, I don't 

         7   believe there was a choice at that time.  I think benchmark 

         8   number, what is it, 8 clearly stated that we were to retain a 

         9   recruitment -- national recruitment firm by August 15th and 

        10   by September 1st a contract had to be in place.  And so 

        11   that -- with that coming out, there was two things we were -- 

        12   happening at one time.  Number one, time, and number two, the 

        13   court order that says you will. 

        14             We came off of a contempt order -- I think at that 

        15   time the department's thinking and their actions was how do 

        16   we, quote, get -- you have a contempt order, what do you do 

        17   to get yourself out of the contempt order, and it's not about 

        18   not doing what you're expected to do.  So since recruitment 

        19   and retention comes out of administrative services, which is 

        20   personnel, assistant superintendent at that time was Paula 

        21   Yoshioka, so I asked her to start looking into what kind of 

        22   national recruitment firms were out there, what -- well, 

        23   what's out there, first of all. 

        24             Number two, does any company have the scope to be 

        25   able to handle what we're asking, and I, in my mind, was 



                            RALPH ROSENBERG COURT REPORTERS
                     OFC:  (808) 524-2090     FAX:  (808) 524-2596


                                                                        18



         1   thinking were there referral services like an employment 

         2   agency that could refer and then, you know, we would hire 

         3   them.  As she started to look through that, the first 

         4   place --

         5             Well, let me step back and share with you that 

         6   special-needs population in the United States, while it may 

         7   be large and growing in numbers, the people who are the 

         8   leaders and the people who are most knowledgeable about this 

         9   particular population run a very close-knit networking 

        10   system, and they have a clearinghouse for special needs 

        11   throughout the United States.  So what we did is we went 

        12   through the national clearinghouse for special-needs 

        13   population.  I think it's in Maryland and -- or Virginia, and 

        14   we asked, do you have -- first of all, can you refer us to 

        15   find if there were any recruiting firms that did this, are 

        16   there any agencies that would do this, are there any 

        17   colleges, so is there any kind of an agency that would be 

        18   able to fill our need or our court order, and the answer we 

        19   got back was no, they don't do a referral, but, you know, you 

        20   can contact people on their board of directors who may be 

        21   able to give you leads. 

        22             And at that point we also asked the monitor, do you 

        23   have any leads because we're not able to find what we're 

        24   looking for and we have an August 15th, and yes, we were very 

        25   concerned, and with that popped up Columbus Educational 



                            RALPH ROSENBERG COURT REPORTERS
                     OFC:  (808) 524-2090     FAX:  (808) 524-2596


                                                                        19



         1   Services, and so when we heard about Columbus Educational 

         2   Services, we did the initial contact with them, we asked them 

         3   for what do they do, what can they do, what was their track 

         4   record, how do they operate.  So we did -- you know, we did 

         5   various conversations on the phone.  Paula did most of it 

         6   through email, and when it came to me for the conference 

         7   calls with them.  It was -- my particular concern was, number 

         8   one, can you deliver what we want, number two, do you have 

         9   the capability and if you don't, can you bring it up so that 

        10   I am not in contempt, and I was also concerned about would 

        11   they be -- I wanted a referral service, an employment agency 

        12   kind of relationship or contract, and Columbus's mission and 

        13   their statement of incorporation, they are an employment 

        14   agency that hires and employs people with companies, 

        15   institutions, clinics, whichever, and they do the hiring, 

        16   they do all the Social Security, medical benefits, workman's 

        17   comp, they cut the checks, they do vacation, they do those 

        18   annuities, retirement, they do everything.  They are the 

        19   company.  So we hired a company to provide a service, and the 

        20   service that they were to provide for us would be special ed 

        21   licensed teachers who would meet the benchmark for 

        22   compliance. 

        23             In that process, we found out that we wanted to do 

        24   it for a year, and through the negotiations it would be for 

        25   three years.  We began to do the contract, and we looked at 



                            RALPH ROSENBERG COURT REPORTERS
                     OFC:  (808) 524-2090     FAX:  (808) 524-2596


                                                                        20



         1   the number of teacher vacancies that we had, and low and 

         2   behold after they gave us their proposal and what it was, the 

         3   amount was rather large, to say the least, which is an 

         4   understatement.  At that point we think of, okay, what do we 

         5   do now and we have compliance looking at us, a benchmark, a 

         6   court date, time, and we need -- and, you know, above all, we 

         7   do want teachers that are trained and we do want teachers 

         8   working with our kids, and we found that the neighbor islands 

         9   are the hardest hit because people don't -- they come and 

        10   they go.  Oahu is probably not the easiest but it may be a 

        11   lot easier to fill and we did it. 

        12             So as we started to get down into the finer points 

        13   of the negotiation, we took a look at where would -- oh, and 

        14   standing off to the side is HSTA, which is also another 

        15   consideration and the impact of bringing in a non-bargaining 

        16   -- or bringing in Columbus teachers, and we looked at all 

        17   these various factors.  We took them into consideration.  We 

        18   looked at the consequences that were occurring, and then I go 

        19   back to, you know, August 2nd stipulation, benchmark, 

        20   contempt order, and what the consequences there would be, and 

        21   doing all that then we move into looking at how do we put 

        22   together the contract so that the Department of Education and 

        23   the state of Hawaii are able to manage and have some input -- 

        24   not only some input, but it's our contract.  We should be 

        25   able to manage it.  So how do we give ourselves the 



                            RALPH ROSENBERG COURT REPORTERS
                     OFC:  (808) 524-2090     FAX:  (808) 524-2596


                                                                        21



         1   flexibility to do this. 

         2             One of the things that we opt for in our discussion 

         3   is that three year -- while it may be three years, it's in 

         4   the contract that it's subject to year-to-year funding, and 

         5   that is where the legislature has an active part in the 

         6   funding process, because our contracts are funded -- our 

         7   budget is funded by the legislature.  So it clearly states 

         8   that it is on a year-to-year funding. 

         9             The second thing that we ensured is that we wanted 

        10   to limit where they would provide the services of the 

        11   teachers, and we limited them to the neighbor islands, 

        12   particularly beginning with those areas that the court had 

        13   declared were the hardest to fill, Ka'u, Kohala, Hana, 

        14   Molokai, yeah, the five.  So those were the first -- that 

        15   first.  There was a lot of discussion.  I will share with you 

        16   that there was a lot of disagreement between Columbus and the 

        17   department, but we held firm that it would be neighbor island 

        18   and it would be the hard-to-fill area first.  That was it.  

        19   And the process that we had agreed to was that if we were 

        20   going to be paying for these services, then we wanted to 

        21   ensure that the teachers that came to Hawaii that we 

        22   interviewed -- because we would have the final decision -- 

        23   the principals would, should be at least 90 percent hireable.  

        24   Don't bring us someone who is a 50/50.  I want the 

        25   probability to be in my favor. 



                            RALPH ROSENBERG COURT REPORTERS
                     OFC:  (808) 524-2090     FAX:  (808) 524-2596


                                                                        22



         1             So what Columbus did is they did their national 

         2   advertisement throughout the nation.  They ended up with 

         3   4,000 applicants who submitted interest and applications to 

         4   work in the state of Hawaii.  They do their first screening, 

         5   which is a paper screening, an office screening of the 4,000.  

         6   They whittled that down to those that they feel meet the 

         7   criteria that we're looking for, special ed, licensable, 

         8   credentials, college -- I mean, you know, their transcripts 

         9   are in, they have experience, or if not they've been out of 

        10   college and they've passed those necessary requirements to be 

        11   a certified teacher and then other -- background check, they 

        12   do the background check for us, and then they do those other 

        13   questioning and answering that we would do if we were 

        14   screening someone. 

        15             Then after they did their first screening and they 

        16   got down to those numbers that they thought would be, you 

        17   know, manageable, they thought could be hired, they did a 

        18   face-to-face.  They met each candidate, and by this time I 

        19   think it's probably down to about maybe 2,000 is what the 

        20   odds would be.  So they do a face-to-face.  They either go to 

        21   that person's city or career center or their center, because 

        22   they have centers throughout the United States in which they 

        23   have -- they had at any one time a minimum of six full-time 

        24   recruiters on staff that they staff throughout, so they are 

        25   constantly recruiting.  So they have recruiting regions or 



                            RALPH ROSENBERG COURT REPORTERS
                     OFC:  (808) 524-2090     FAX:  (808) 524-2596


                                                                        23



         1   centers.  So they had face-to-face, and from there they did 

         2   the second cut, and what came from that second face-to-face. 

         3   Then they did the next one, which would be the people who 

         4   were the point people here in Hawaii, that would be Diane 

         5   Sydoriak and Virginia Clemons, so then it comes down to what 

         6   it is. 

         7             In the meantime, the people that are located in 

         8   Hawaii have a very specific task, and their task is to meet 

         9   the schools, principals, know what it is that the school 

        10   principal wants, they need to find out about the school 

        11   community, about the culture, they need to find out about 

        12   housing, transportation, what are the services that teachers 

        13   would be able to -- how do we support, how do we network, how 

        14   do we ensure that the teacher that comes, stays. 

        15             So there were two things going on in this process 

        16   of recruiting, and when the Hawaii office met with the 

        17   mainland office on those that had passed the face-to-face.  

        18   That's when they did that real mashing of who do they think 

        19   would be able to get hired here, and then, finally, when they 

        20   came down to those numbers, then they flew the person to 

        21   Hawaii and they set up like two or three interviews.  So it 

        22   wasn't one on one.  It was like one candidate would have 

        23   three or four school principals that they would interview 

        24   while they were here for the day -- or three days.  Usually 

        25   we tried to do it around a weekend so that the principal 



                            RALPH ROSENBERG COURT REPORTERS
                     OFC:  (808) 524-2090     FAX:  (808) 524-2596


                                                                        24



         1   would be available Thursday, Friday, or maybe a Monday, 

         2   Tuesday, and then from there the selection was made. 

         3             We found that because we started after September, 

         4   that was the quantity that Mr. Koyama -- the production 

         5   wasn't coming in on what was projected because we had started 

         6   after the school year began.  Many of the teachers on the 

         7   mainland were unable to break their contract on the mainland,  

         8   so we realized that timing was not appropriate -- was not the 

         9   best, also that a lot of people want -- for the people in 

        10   Columbus if they were young and single and out of college 

        11   chances are better that they would be here, but if they had 

        12   families and they had children in school and they had lives, 

        13   then it was much more difficult for them and it would be a 

        14   commitment, because it was a three-year commitment.  It 

        15   wasn't just for a year, or come, if you don't like it, leave.  

        16   The expectation is it's for three years.  So that took -- 

        17   factored into the production numbers. 

        18             And just before the teacher's strike we realized 

        19   that this one on one was just not as -- you know, may I just 

        20   stop for a second, Mr. Kawashima?

        21        Q.   Yes.

        22        A.   I'm getting lengthy here and people are such good 

        23   listeners, but I would like to pass this out.  And what I did 

        24   is I did a chronology, and I apologize I didn't start that 

        25   off as I began, but I did a chronology of Columbus and maybe 



                            RALPH ROSENBERG COURT REPORTERS
                     OFC:  (808) 524-2090     FAX:  (808) 524-2596


                                                                        25



         1   that will help put it together about the numbers and what 

         2   occurred and then I'll add the in betweens.

         3        Q.   Okay.  Let me ask you some questions about what you 

         4   just testified to, Ms. Hamamoto.  Am I to understand -- well, 

         5   strike that. 

         6             First of all, the initial contract with Columbus 

         7   was for the amount of $100 million or so.  Now, I understand, 

         8   though, that -- having looked into the matter, that it 

         9   appears that the $100 million or so would have been expended 

        10   had Columbus performed under the contract totally but over a 

        11   period of three years; is that a fair statement or not?

        12        A.   That would be a fair statement.

        13        Q.   And as it turned out, you had to modify the 

        14   contract because, unfortunately, the results of Columbus's 

        15   efforts were not as they had anticipated, right?

        16        A.   Mr. Kawashima, can you repeat that statement -- 

        17   question again, please?

        18        Q.   Do you agree that one of the reasons you had to 

        19   modify the agreement -- to revise downward the contract 

        20   amount was because Columbus could not perform under contract 

        21   as had been anticipated, albeit optimistically, but had not 

        22   performed as had been expected in finding the numbers of 

        23   teachers that they were looking for; is that a fair 

        24   statement?

        25        A.   No, and the reason why is -- that I would like to 



                            RALPH ROSENBERG COURT REPORTERS
                     OFC:  (808) 524-2090     FAX:  (808) 524-2596


                                                                        26



         1   explain is that the two impacters were time and the court 

         2   order, and so that was our first concern.  Once we had 

         3   fulfilled that, we knew -- and we had talked with Columbus 

         4   that the contract would always be subject to revision, and 

         5   the revision would be based upon the department's need and we 

         6   would only pay for teachers that we hired.  We weren't going 

         7   to pay for a number.  So it was no teacher, no pay, and it 

         8   was always designed that way.  So up front when we worked 

         9   with Columbus, while this was their proposal and we accepted 

        10   the proposal, in light of the time element and the court 

        11   order, both Columbus and the department knew that this was 

        12   subject to revision and most likely it would be going down.  

        13   This would be the maximum.  It would not exceed what we put 

        14   here, and chances were, in all likelihood, that we would 

        15   start to move into our need.

        16        Q.   I see. 

        17        A.   We also told Columbus when we began that the 

        18   department would not stop its own recruiting efforts.  Not 

        19   only would we continue and beef up our recruiting efforts, 

        20   but part of the contract is Columbus would be working with us 

        21   to build our own capacity in recruitment and retention.  So 

        22   from the get-go it was always understood that we would be 

        23   looking to revise it and we would be building our own 

        24   capacity in consonant with implementing parts of this 

        25   contract.



                            RALPH ROSENBERG COURT REPORTERS
                     OFC:  (808) 524-2090     FAX:  (808) 524-2596


                                                                        27



         1        Q.   You have actually revised it significantly, have 

         2   you not?

         3        A.   Yes.

         4        Q.   And Columbus has not complained or objected to 

         5   that, have they?

         6        A.   No.

         7        Q.   And though -- one aspect of it, though, I just want 

         8   to clarify to be sure I understand it, is that your -- well, 

         9   first of all, the amount of $100 million was at one time an 

        10   amount requested for appropriation, right?

        11        A.   It was requested -- you know, I --

        12        Q.   The item was there in that amount in an 

        13   appropriation request at one time?  Not correct?

        14        A.   No.  And the reason I'm thinking about it is 

        15   because if I think of how we do the budget process and how we 

        16   ask or we request our appropriation on a yearly basis, we 

        17   would not be asking for the 100 million.  We would be asking 

        18   for what we would need for that year to implement that part 

        19   of the contract.  So while it may have appeared to look as 

        20   100 million, we would not be asking the legislature for the 

        21   100 million, but we would be asking for each year what we 

        22   would need to implement.

        23        Q.   I see.  I have not looked at that item very 

        24   closely, Ms. Hamamoto.  You may be correct.  So that in your 

        25   mind, as far as you're concerned, the Department of Education 



                            RALPH ROSENBERG COURT REPORTERS
                     OFC:  (808) 524-2090     FAX:  (808) 524-2596


                                                                        28



         1   never requested an appropriation item for Columbus in the 

         2   amount of $100 million?

         3        A.   No, sir.

         4        Q.   But your understanding is, though, that any amounts 

         5   that are paid to Columbus, they -- Columbus understands that 

         6   it is subject to funding by the legislature, is it not?

         7        A.   Yes.

         8        Q.   So that if the legislature, for whatever reason, 

         9   decides it cannot fund it, then Columbus cannot be paid, they 

        10   understand that?

        11        A.   Correct.

        12        Q.   Now, Columbus, though, as you've already explained 

        13   the atmosphere in the country with special education, there 

        14   really was no employment agency that specializes in special 

        15   education at the time, was there?

        16        A.   No.

        17        Q.   So Columbus, albeit a large national company, 

        18   itself had not specialized in special education, had it?  And 

        19   I use the word specialized -- I stress that word.

        20        A.   Their whole -- their entire mission and their 

        21   company is based on specialized for the special-needs 

        22   population, so --

        23        Q.   It is?  Columbus is?

        24        A.   Columbus Educational Services specifically looks 

        25   for the special-need population.  They've done institutions 



                            RALPH ROSENBERG COURT REPORTERS
                     OFC:  (808) 524-2090     FAX:  (808) 524-2596


                                                                        29



         1   for people who are trained to help -- or to work with the 

         2   mentally retarded, the severe, the autistic.  So they have on 

         3   their board of directors these individuals throughout the 

         4   nation that are highly qualified in the special-needs 

         5   population area and they have on their staff working with 

         6   their people people who are versed in ADA as well as IDEA.  

         7   So they are very in tune with those kinds of special needs.  

         8   While it may not be special education teachers, but it is 

         9   special-needs population.

        10        Q.   Were you aware of Columbus Educational Services 

        11   before you went on this rather, as you described it, frantic 

        12   search for a search firm?

        13        A.   No, Mr. Kawashima, I had no idea such an agency 

        14   existed.

        15        Q.   Knowing about it as you do now, to your knowledge, 

        16   is there anyone who is on Columbus's board of directors or 

        17   employed by Columbus now or in the recent past that have 

        18   performed any services here in Hawaii or related to any of 

        19   the Felix matters in Hawaii?

        20        A.   Not to my knowledge.

        21        Q.   Now, you mentioned, though, going to the court 

        22   monitor and asking if he had any suggestions about who might 

        23   be able to assist you and the name Columbus came up?

        24        A.   What he -- when I -- when we went to ask him -- and 

        25   I'm in my mind thinking of that, you know, it was like, 



                            RALPH ROSENBERG COURT REPORTERS
                     OFC:  (808) 524-2090     FAX:  (808) 524-2596


                                                                        30



         1   Dr. Groves, we're having a hard time, have you got any 

         2   suggestions, because we need to do a court order here, and he 

         3   said that -- let him check and he would talk with Ms. Schrag, 

         4   Judy Schrag, and Dr. Schrag, I think -- I can't remember who 

         5   exactly gave us the name Columbus, but it was referred 

         6   through either the monitor or Dr. Schrag.

         7        Q.   I see.  And did Columbus, by the way, prior to your 

         8   entering into the contract with Columbus, send 

         9   representatives here to Hawaii to discuss the matter with you 

        10   or to look at what we had here and what type of task they 

        11   were going to embark upon?

        12        A.   The sequence of events -- let's see, this starts in 

        13   October.  The sequence of events was that we got the name, 

        14   Columbus Educational Services, we initiated the phone call, 

        15   and then we started some email.  Then they sent over the 

        16   president and their chief fiscal officer to talk with us so 

        17   that they could develop the scope of what their proposal 

        18   would be and know exactly what it is that we were looking 

        19   for.  They came over for about two to three days, talked with 

        20   us, talked a lot with personnel understand how we do 

        21   recruiting, what it is, what is our island like, what our 

        22   process, procedures, then they went back and they submitted 

        23   their proposal.

        24        Q.   Who are individuals, the president and the chief 

        25   fiscal officer?



                            RALPH ROSENBERG COURT REPORTERS
                     OFC:  (808) 524-2090     FAX:  (808) 524-2596


                                                                        31



         1        A.   Richard Rounder and Don Mooney, or maybe he's chief 

         2   operations officer.

         3        Q.   I saw the name Kukic, K-U-K-I-C, somewhere that may 

         4   have been related to Columbus.  Does that found familiar to 

         5   you?

         6        A.   No, sir.

         7        Q.   Steven Kukic, K-U-K-I-C?

         8        A.   No, sir.

         9        Q.   And no one from Columbus has come down with a name 

        10   like that?

        11        A.   Not that I'm aware of.

        12        Q.   Are you aware of anyone such as the court monitor, 

        13   Dr. Groves, or Ms. Schrag being in any way affiliated with 

        14   Columbus?

        15        A.   No, sir.

        16        Q.   Nothing was revealed to you?  I'm not suggesting 

        17   that there is something, but nothing was revealed to you by 

        18   Ms. Schrag or Dr. Groves as to their respective relationships 

        19   with Columbus, if any?  Nothing was revealed to you, was it?

        20        A.   No, sir.

        21        Q.   You mentioned the urgency -- time urgency you were 

        22   under, and I think roughly the time frame was order -- the 

        23   benchmark relating to this area was contained within a 

        24   stipulated order; is that correct?

        25        A.   Yes.



                            RALPH ROSENBERG COURT REPORTERS
                     OFC:  (808) 524-2090     FAX:  (808) 524-2596


                                                                        32



         1        Q.   Dated on or about August 2nd of this year?

         2        A.   Yes.

         3        Q.   And also -- not this year, last year.

         4        A.   2000.

         5        Q.   Correct, last year.  And then, though, this 

         6   specific benchmark -- I'm paraphrasing, but required that a 

         7   firm -- national recruiting firm be retained by August 15th, 

         8   13 days hence, and that a contract be entered into by 

         9   September 1st; is that correct?

        10        A.   Yes.

        11        Q.   And that was all in the stipulated order, was it 

        12   not?

        13        A.   Yes, it was.

        14        Q.   Do you know why -- well, strike that.

        15             You certainly would not have agreed with such a 

        16   time frame, would you?

        17        A.   No, sir.

        18        Q.   Do you know why anyone -- whoever it was entered 

        19   into a stipulation that would place such strict and very 

        20   rigid time constraints on the department?

        21        A.   Back in January of 2000, maybe December of 2000, 

        22   the plaintiffs' attorney had been pushing on the department 

        23   to get more special education licensed teachers and we were 

        24   not meeting that 85 percent benchmark.  It was 85 percent 

        25   licensed teachers that was part of the original benchmark 



                            RALPH ROSENBERG COURT REPORTERS
                     OFC:  (808) 524-2090     FAX:  (808) 524-2596


                                                                        33



         1   that came out in 1994, 1995, and we weren't meeting that.  

         2   Our monitoring and our -- excuse me.  Our self-monitoring and 

         3   our reporting to the courts were not as sophisticated as they 

         4   currently are because we've since set up the systems, but we 

         5   were giving them reports and they were very dissatisfied.  

         6   They were not adequate for their purpose, which was to ensure 

         7   that the department was working towards compliance. 

         8             And I remember from around December, January that 

         9   there were many conversations about the department should 

        10   hire from outside, and the retort from the part of the 

        11   department was, well, you know, this is a -- we do have a 

        12   union here.  It's not about bringing in people who will come 

        13   and then leave.  It's about retention.  It's not about 

        14   bringing in people who will stay two years and go, and it's 

        15   not about someone thinking they know what we want.  It's 

        16   about what we want. 

        17             So the discussion with the plaintiffs' attorneys 

        18   had been going on since December, January '99, 2000, and 

        19   their comment and their position was that the department is 

        20   not able to fulfill its requirement to get specialized 

        21   teachers or licensed teachers, and licensed teachers in the 

        22   classroom meant that kids would be adequately, properly 

        23   serviced.  They would know what they were able to do, and 

        24   they would be able to deliver the quality of service through 

        25   the system of care.  So it's very important that when you 



                            RALPH ROSENBERG COURT REPORTERS
                     OFC:  (808) 524-2090     FAX:  (808) 524-2596


                                                                        34



         1   help the students and you deliver the system of care, that 

         2   you have trained professionals who not only know what they 

         3   are supposed to do, but are able to do what they are supposed 

         4   to do, so that special education licensed teacher was one of 

         5   the high benchmarks -- high watermarks in the eyes of the 

         6   plaintiffs, and the department was just unable to put 

         7   together -- we had been doing what we've always done. 

         8             We had our own certification program with RISE, we 

         9   sent out our principals and our recruiting staff, but we were 

        10   not bringing in the numbers, and every year it appeared, 

        11   based on what was licensed, qualified, and trained, we either 

        12   were just slowly putting our head above -- we weren't even 

        13   above water.  We were just going to the surface or not at 

        14   all, and with the yearly retirements and with people leaving, 

        15   it was almost like going down, trying to get up to where we 

        16   were before they left and then moving above, and it was 

        17   just -- it just was very difficult.  At times it seemed like 

        18   an impossible task, and the plaintiffs kept saying, well, 

        19   then go to an employment agency, go find a recruitment --

        20        Q.   No, but let me --

        21        A.   So with that, they put it in a court order, and I 

        22   was surprised.

        23        Q.   You didn't agree with that, did you, that -- such a 

        24   short time frame?

        25        A.   Absolutely not.



                            RALPH ROSENBERG COURT REPORTERS
                     OFC:  (808) 524-2090     FAX:  (808) 524-2596


                                                                        35



         1        Q.   Of course.  And if you were asked whether or not 

         2   you would agree to such a short time frame, you would not 

         3   have agreed with that, would you?

         4        A.   No, Mr. Kawashima.

         5        Q.   Do you know if the department's position was well 

         6   stated in terms of the amount of time you might have needed 

         7   to do this job?  Understanding all the background, we don't 

         8   need to go into that, but understanding all of the 

         9   background, for the court to order that on August 2nd that 

        10   you need to retain someone by August 15th for such a large 

        11   task and enter into a contract by September 1st, now, that 

        12   type of time frame, do you feel the department's position was 

        13   well stated, that they did not agree with that?  Because you 

        14   did enter into a stipulation, you know?

        15        A.   Yes.

        16        Q.   Do you think the department's position was well 

        17   stated there?

        18        A.   No, sir.

        19        Q.   All right.  Now, though, even the September 1 date 

        20   to enter into a contract, to make it a public matter, in 

        21   other words, to put it in a public document that was filed 

        22   and open to the public so that whoever negotiated with the 

        23   state of Hawaii knew that you had to enter into a contract by 

        24   court order on September 1, that would place you at a 

        25   tremendous disadvantage in negotiating, wouldn't it?



                            RALPH ROSENBERG COURT REPORTERS
                     OFC:  (808) 524-2090     FAX:  (808) 524-2596


                                                                        36



         1        A.   Yes, it does.

         2        Q.   So was that made clear so that perhaps that one 

         3   date would not be contained within the stipulated order that 

         4   was actually filed and issued?

         5        A.   Mr. Kawashima, at the time that the final 

         6   stipulations were agreed to, I was not part of many of those 

         7   conversations.  While I may have been in regards to what was 

         8   doable and what was operational, some of those decisions were 

         9   made that I wasn't --

        10        Q.   I understand.

        11        A.   -- part of.

        12        Q.   I understand that the superintendent delegated much 

        13   of the responsibility to Ms. Yoshioka.

        14        A.   Yes, sir.

        15        Q.   Now, nonetheless, even considering all of these 

        16   concerns, the contract that you believe the department 

        17   entered into had a moral commitment on the people who were 

        18   hired to stay here at least three years; was that what you 

        19   said earlier?

        20        A.   Yes.

        21        Q.   We don't need to go into it in detail, ma'am, but 

        22   you agree, though -- and again, I understand the urgencies 

        23   and the reasons why it may have happened, but that the 

        24   contract that you were, you feel, forced to enter into and 

        25   that you did enter into was highly advantageous to Columbus 



                            RALPH ROSENBERG COURT REPORTERS
                     OFC:  (808) 524-2090     FAX:  (808) 524-2596


                                                                        37



         1   from the terms of the contract?  And I may give you an 

         2   example first.  The contract doesn't require Columbus 

         3   actually to do anything but make good faith effort to find 

         4   teachers for you; is that a fair statement?

         5        A.   I --

         6        Q.   And that may be a legal question, so if you --

         7        A.   No, I'm thinking because it was never about good 

         8   faith effort.  It was about production.

         9        Q.   Sure.

        10        A.   So if they did not give us the -- if we didn't 

        11   hire, we wouldn't pay.

        12        Q.   Right.  I understand that.  That's a good aspect of 

        13   the contract that you have, that if they didn't produce a 

        14   person who started working, other than the expenses for 

        15   travel and all, you wouldn't have to pay that person as a 

        16   teacher, right?  You wouldn't have to pay Columbus who would 

        17   pay that person as a teacher; is that correct?

        18        A.   Yes.

        19        Q.   But nonetheless, even before they hired their very 

        20   first teacher, a substantial amount was expended in setting 

        21   up offices, hiring personnel, dedicating these personnel to 

        22   these offices, substantial amounts.  I hesitate to estimate 

        23   how much that was, but if for -- and I'm not suggesting it 

        24   would happen, but if it didn't happen that Columbus didn't 

        25   hire one person, all of those expenses would have been lost, 



                            RALPH ROSENBERG COURT REPORTERS
                     OFC:  (808) 524-2090     FAX:  (808) 524-2596


                                                                        38



         1   that's how the agreement was structured, was it not?  Was 

         2   that too long a question?

         3        A.   No, no, and I would like to include in the answer 

         4   that it -- while the simple or the short answer is yes, 

         5   there -- when a person enters into a contract of this nature 

         6   and this size, this amount, and this scope, I believe that as 

         7   I stated when I first -- in my opening statement, the public 

         8   trust and the funds that I am expected to expend properly 

         9   weighs very heavily in my decision-making, and through that 

        10   decision-making and our consideration of Columbus, we were 

        11   comfortable that the company was a solid company, that the 

        12   company if it was going to -- it had been around in since 

        13   1984, that if it was going to continue to do well or to 

        14   continue to exist as a company, then they would -- it would 

        15   be to their advantage to also produce the numbers so that we 

        16   would be able to hire.

        17        Q.   Sure.  I understand what you're saying, and I don't 

        18   disagree with that, but it appears from the agreement itself, 

        19   though, that's not a requirement of the agreement, that they 

        20   produce one or 200 teachers.  They will make their best 

        21   effort.  If for whatever reason they could not find that 

        22   person or persons, they suffered no consequences because all 

        23   the expenses up to that point, hiring personnel, opening 

        24   offices in the mainland, here in Hawaii were all to be paid 

        25   by the state of Hawaii and the state of Hawaii only?



                            RALPH ROSENBERG COURT REPORTERS
                     OFC:  (808) 524-2090     FAX:  (808) 524-2596


                                                                        39



         1        A.   Administrative costs, yes.

         2        Q.   Now, has -- the name Judy Schrag has come up.  Has 

         3   she, as far as you're concerned, provided any consulting 

         4   services to the state of Hawaii?

         5        A.   Through the court monitor's office, yes.

         6        Q.   And what type of services has she performed?

         7        A.   Judy Schrag was -- in 1994 when the technical 

         8   assist panel came about, Judy Schrag was the department's 

         9   person.  Lenore Behar was for the Department of Health 

        10   representative, and the court monitor was agreed to by the 

        11   then deputy attorney general and the plaintiffs' attorneys, 

        12   and that's the decision-maker.

        13        Q.   Who was agreed upon by the plaintiffs' attorneys 

        14   and the deputy AG?

        15        A.   The two names that pop up that I'm aware of is 

        16   Charlene Aina and Shelby Floyd.

        17        Q.   No, I'm sorry, I'm talking about --

        18        A.   Oh, Ivor Groves.  I'm sorry, Ivor Groves.

        19        Q.   But he had come to Hawaii even before that, though, 

        20   as a retained expert witness for the plaintiffs in that class 

        21   action litigation, had he not?  Do you know that?

        22        A.   Yes, I do, and at one time I asked Dr. Groves how 

        23   did he get involved in all of this, you know, being a history 

        24   major, how did you get involved in all of this, and he very 

        25   briefly was asked to come prior by an advocacy group to speak 



                            RALPH ROSENBERG COURT REPORTERS
                     OFC:  (808) 524-2090     FAX:  (808) 524-2596


                                                                        40



         1   at a conference on special needs, and when he got off the 

         2   plane he was then asked to start looking at what is going on 

         3   in this state and started to look behind the provision of 

         4   services, the delivery of services, and I guess they moved -- 

         5   I don't know the details, and the next thing we were in court 

         6   and they decide on a monitor and he's the chosen person.

         7        Q.   Who asked him to look at the situation?

         8        A.   It was a name that I'm not familiar with.  It was 

         9   an advocacy group that was around in 1992, '93.  I don't know 

        10   even know if that advocacy group is still around today.

        11        Q.   Do you know any of the individuals that were 

        12   involved with that advocacy group?

        13        A.   No.  In my conversation with Dr. Groves at that 

        14   time I wasn't asking, you know, those questions, just how did 

        15   you get into this.

        16        Q.   But you do know that at one time he was named as an 

        17   expert witness for the plaintiffs' side in the class action 

        18   litigation?

        19        A.   No, but -- I didn't.

        20        Q.   All right.  And do you know whether or not the 

        21   state of Hawaii, either the Department of Health or the 

        22   Department of Education, had obtained Lenore Behar as an 

        23   expert witness?

        24        A.   What I -- what I was -- what was told to me was 

        25   that Lenore Behar worked for the Department of Health as a 



                            RALPH ROSENBERG COURT REPORTERS
                     OFC:  (808) 524-2090     FAX:  (808) 524-2596


                                                                        41



         1   consultant and I don't know for how long.

         2        Q.   All right.  Do you know whether or not -- strike 

         3   that.

         4             As far as you know, Lenore Behar is not providing 

         5   services to either the Department of Health or the Department 

         6   of Education as of the present time?

         7        A.   No, sir.

         8        Q.   Do you know when she ceased her -- providing 

         9   services to the state?

        10        A.   When the technical assistance panel was disbanded, 

        11   and I believe that was 2000, with that last court -- when the 

        12   contempt order came out they disbanded the technical 

        13   assistance panel.

        14        Q.   What was your understanding as to why the technical 

        15   assistance panel was disbanded?

        16        A.   My understanding is the department had moved to a 

        17   level of compliance and we had been working on that 

        18   infrastructure, and many of the things -- or infrastructure 

        19   items had been identified.  It was being put in place.  So 

        20   much of the technical assistance that they we were providing, 

        21   we had reached a level where we were able to not only sustain 

        22   but we were able to know what we needed to do.

        23        Q.   Now, the technical assistance panel, though, is it 

        24   your understanding that the individuals that constituted the 

        25   panel were paid through the Felix monitoring project?



                            RALPH ROSENBERG COURT REPORTERS
                     OFC:  (808) 524-2090     FAX:  (808) 524-2596


                                                                        42



         1        A.   Yes.

         2        Q.   Let me digress a bit.  The service testing 

         3   instrument that was ultimately used by the state was an 

         4   instrument that had a copyright on it by a company that was 

         5   at least partly owned by Dr. Groves; are you aware of that?

         6        A.   No, I didn't know it was copyrighted.

         7        Q.   Oh, okay.  I believe there was testimony.  I'm not 

         8   saying -- representing that it was at this point, but there 

         9   was sworn testimony in one of these proceedings that it was 

        10   copyrighted.

        11        A.   All right.

        12        Q.   But did you know, though, that when the service 

        13   testing instrument was recommended and then started to be 

        14   utilized by the state, did you know that the instrument was 

        15   an instrument owned by a company in Florida, one of the 

        16   stockholders of which would be Dr. Groves?

        17        A.   No, I didn't know that the instrument was owned.  I 

        18   know of service testing and how it came about and the genesis 

        19   of it, but I didn't realize that it was a -- you know, that 

        20   it was copyrighted.  I know that's what the monitor, 

        21   Dr. Groves, and the state agreed to would be the tool or by 

        22   which we would determine compliance.

        23        Q.   The tool by which you would determine compliance 

        24   was recommended by Dr. Groves?

        25        A.   The case review process I believe was -- it was a 



                            RALPH ROSENBERG COURT REPORTERS
                     OFC:  (808) 524-2090     FAX:  (808) 524-2596


                                                                        43



         1   current state of the art methodology and strategy in 

         2   determining compliance.

         3        Q.   Understanding the state of the art at the time, 

         4   Ms. Hamamoto, and I understand the situation may have been 

         5   difficult at that time to find a tested instrument, something 

         6   that had gone through various uses and various states, but 

         7   nonetheless, it was Dr. Groves who recommended the use of 

         8   this instrument that was ultimately used, right?

         9        A.   Uh-huh.

        10        Q.   Yes?

        11        A.   Yes.

        12        Q.   And when he recommended it, did he inform you, at 

        13   least, that the instrument was own by a company of his?

        14        A.   No.  When I became deputy, service testing was 

        15   already in progress.

        16        Q.   I see.  Do you know historically, going back in 

        17   serving as deputy superintendent from 1999 onwards, did you 

        18   learn, though, at some point in time that this instrument had 

        19   been owned by Dr. Groves's company?

        20        A.   I guess, Mr. Kawashima, I don't look at it as being 

        21   owned, and the reason is because I know that since 1981 case 

        22   review for -- as a method of determining whether outcomes 

        23   were being achieved had been in use.  I do know that what was 

        24   created for Hawaii was unique to Hawaii because it's 

        25   customized.  So the process is generic throughout the nation, 



                            RALPH ROSENBERG COURT REPORTERS
                     OFC:  (808) 524-2090     FAX:  (808) 524-2596


                                                                        44



         1   but what happened in Hawaii -- and if you --  then it would 

         2   stand to resume what you shared with me, that it's copyright 

         3   for him because he crafted it or he customized it for 

         4   Hawaii's use.

         5        Q.   Well, I would imagine an instrument like that would 

         6   be customized in every jurisdiction in which it would be 

         7   used, right?

         8        A.   That's true, it is.

         9        Q.   But the basic type of instrument, if a person 

        10   copyrights it, obviously that person believes that it has 

        11   some special aspects to it that they wanted to maintain 

        12   ownership interest in, right?

        13        A.   Yes.

        14        Q.   Now, my understanding is that the state was not 

        15   charged any fee for the use of that instrument in and of 

        16   itself directly; is that correct?

        17        A.   To my knowledge, yes.

        18        Q.   However, the state of Hawaii did have to pay for 

        19   the expenses and fees to various consultants to come to 

        20   Hawaii to teach the people how to use the instrument, though?

        21        A.   Yes.

        22        Q.   Including Ray Foster, Dr. Groves's partner; is that 

        23   correct?

        24        A.   I don't know if he's his partner, but yes, Dr. --

        25        Q.   Partner may be a loose term.  Who is also a 



                            RALPH ROSENBERG COURT REPORTERS
                     OFC:  (808) 524-2090     FAX:  (808) 524-2596


                                                                        45



         1   shareholder in that same company, you were aware of that, 

         2   weren't you?

         3        A.   No.

         4        Q.   My understanding is he's also a shareholder in the 

         5   company that owns the copyright, if there is one, that owns 

         6   the ownership interest in this service testing instrument.  

         7   You were not aware of this?

         8        A.   No, sir.

         9        Q.   Now, are you aware as to whether or not this 

        10   service testing instrument, albeit modified, of course, for 

        11   another state or district or division, has been used in any 

        12   other state of the union?

        13        A.   I know it's being used in Alabama.  I also know 

        14   it's being used in Iowa, and they are called quality case 

        15   reviews.

        16        Q.   But it meaning that instrument?

        17        A.   The process.

        18        Q.   The process, all right.  Do you know if the use in 

        19   Alabama and Iowa was initiated after the instrument was being 

        20   used in Hawaii already or not?

        21        A.   No, I do not.

        22        Q.   Do you know whether or not the state of Iowa or the 

        23   state of Alabama paid a fee for the use of that instrument?

        24        A.   No, sir.

        25        Q.   As far as Ms. Schrag -- let me get back to 



                            RALPH ROSENBERG COURT REPORTERS
                     OFC:  (808) 524-2090     FAX:  (808) 524-2596


                                                                        46



         1   Ms. Schrag.  I digressed there.  As far as Ms. Schrag is 

         2   concerned, though, do you have any knowledge that she was 

         3   involved in any way with the service testing instrument?

         4        A.   No.

         5        Q.   I'm not suggesting she was.

         6        A.   No.

         7        Q.   So that any payments made to Ms. Schrag, to your 

         8   knowledge, would have been from the monitoring project, not 

         9   the state?

        10        A.   To my knowledge, it would be through the monitoring 

        11   project.

        12        Q.   The types of services that she performed, some of 

        13   them were related to state matters, educational matters, 

        14   though, not necessarily the monitoring project matters, 

        15   weren't they?  Let me ask it this way.  What types of 

        16   consulting did she provide, to your knowledge?

        17        A.   The ones that I'm aware of:  She's done a 

        18   management study for the department I think in 1998, along 

        19   with other members.  She has worked with our special 

        20   education department on the monitoring of the continuous 

        21   improvement process.  She's helped us -- worked with us as a 

        22   consultant on our integrated training plan.  She's been 

        23   involved in the IEP process.

        24        Q.   I see.  Well, let me stop you there.  We're going 

        25   to take a break shortly.  Let me finish this line, ma'am.  



                            RALPH ROSENBERG COURT REPORTERS
                     OFC:  (808) 524-2090     FAX:  (808) 524-2596


                                                                        47



         1   The management study that Ms. Schrag did in 1998, was that a 

         2   study of the infrastructure, the organizational structure of 

         3   the Department of Education?

         4        A.   Specific to the compliance efforts in Felix.

         5        Q.   When you say specific to the compliance efforts, 

         6   what do you mean?

         7        A.   What the department -- how the management or the 

         8   structure of the department lent itself to compliance 

         9   efforts.

        10        Q.   And to your knowledge -- you weren't here then, but 

        11   to your knowledge, did the department decide that this needed 

        12   to be done or was this something that was either recommended 

        13   or ordered by the court monitor?

        14        A.   I don't know if it was ordered or recommended, but 

        15   it was done.

        16        Q.   And it was done, though, specific to the Felix 

        17   response plan or the Felix compliance efforts?

        18        A.   Yes.

        19                  SPECIAL COUNSEL KAWASHIMA:  Take a break?

        20                  CO-CHAIR REPRESENTATIVE SAIKI:  Members, we've 

        21   hit the one-hour mark, so let's give our court reporter a 

        22   break.  Five-minute recess. 

        23                            (Recess taken.)

        24                  CO-CHAIR REPRESENTATIVE SAIKI:  Members, we'd 

        25   like to reconvene our hearing, and we'll continue with 



                            RALPH ROSENBERG COURT REPORTERS
                     OFC:  (808) 524-2090     FAX:  (808) 524-2596


                                                                        48



         1   questioning by Special Counsel.

         2                  SPECIAL COUNSEL KAWASHIMA:  Thank you, Chair 

         3   Saiki.

         4        Q.   Ms. Hamamoto, I was asking you some questions about 

         5   some individuals before we took a break.  I had also asked 

         6   you a few questions about the technical assistance panel as 

         7   it existed.  During the time that you were deputy 

         8   superintendent, you must have had some dealings with the 

         9   panel as a panel, the technical assistance panel?

        10        A.   Yes.

        11        Q.   During the time -- well, would you recall what 

        12   types of dealings you might have had with them?

        13        A.   Primarily my dealings with them were at meetings in 

        14   which the monitor generally -- well, the monitor chaired the 

        15   meetings and it was a status report.  When the monitor came 

        16   to town at his regular -- whenever he comes to town, he'd 

        17   have a meeting of the parties, and at that time it would be 

        18   the Department of Education, Dr. LeMahieu, myself, Dr. Houck, 

        19   and various programs people if he asked for them, and then on 

        20   the other side it was the Department of Health, it was Bruce 

        21   Anderson, Anita Swanson, Tina Donkervoet, and it would be the 

        22   plaintiffs' attorneys, generally it was Eric Seitz and Shelby 

        23   Floyd, and we would have those. 

        24             We also had meetings whenever Mr. Portnoy called, 

        25   the master, in his office, and again, it would be the 



                            RALPH ROSENBERG COURT REPORTERS
                     OFC:  (808) 524-2090     FAX:  (808) 524-2596


                                                                        49



         1   superintendent, myself, and Dr. Houck, Bruce Anderson, Anita 

         2   Swanson, and then the plaintiffs' attorneys, and then we 

         3   would be asked questions about the status.  So other than 

         4   that, I have not worked with them unless Dr. Schrag would be 

         5   the one that would be giving me an update.  She's the only 

         6   one of the technical --

         7        Q.   Why would she be giving you an update, as opposed 

         8   to anyone else on that panel?

         9        A.   She would be calling me to let me know her progress 

        10   on particular issues that she had been working with with the 

        11   department, as I mentioned earlier, the IEP, the training 

        12   plan, did I have thoughts about what it should look like, how 

        13   it should role out, did I have any concerns that I wanted to 

        14   address with her so that she would be sure that when she 

        15   worked with our staff that these issues would be 

        16   incorporated.

        17        Q.   I see.  Now, was it your understanding, if you had 

        18   any, about the technical assistance panel, that the way it 

        19   was constructed with three people in it, constituting the 

        20   panel, that each one of those three individuals represented 

        21   different interests or were they supposed to, once they came 

        22   together as a panel, represent the state of Hawaii in trying 

        23   to achieve compliance?

        24        A.   That they would represent the overall state of 

        25   Hawaii's compliance efforts, but each one was specific -- had 



                            RALPH ROSENBERG COURT REPORTERS
                     OFC:  (808) 524-2090     FAX:  (808) 524-2596


                                                                        50



         1   specific skills and knowledge that would help those areas or 

         2   agencies that would be closest to what they are able to do.

         3        Q.   Which -- so Ms. Schrag was the one that was, in 

         4   your mind, early on designated as the Department of 

         5   Education's person or not?

         6        A.   Yes, she was.  My first encounter with Judy Schrag 

         7   was when I was a principal at McKinley High School and we 

         8   were first looking at a pilot demonstration for CSSS back in 

         9   '95, maybe '7, and we were looking at that -- a continuum of 

        10   services for students, it would be Kaiulani, Central, and 

        11   McKinley as one of the demonstration complexes, or those 

        12   three schools.  There were several -- I think Kaiser High 

        13   School was one, Mokihana on Kauai was another, so they had 

        14   designated different kinds of pilots.

        15        Q.   When you dealt with Ms. Schrag back then was that, 

        16   to your understanding, by virtue of her position on the panel 

        17   or by virtue of her position as a consultant?

        18        A.   Mr. Kawashima, I don't know.  At that time, back 

        19   until the mid-'90s or when she first came to us, I did not 

        20   even connect it up to the Felix consent decree.

        21        Q.   Drawing back, though, now that you know what you 

        22   know, can you give me your opinion, if you have one, based on 

        23   what you knew then and what you know now whether she was 

        24   functioning as a consultant on the one hand or as a member of 

        25   the technical assistance panel on the other?



                            RALPH ROSENBERG COURT REPORTERS
                     OFC:  (808) 524-2090     FAX:  (808) 524-2596


                                                                        51



         1        A.   I believe it would be for the technical -- I would 

         2   imagine for the technical assistance panel.

         3        Q.   But did she in fact -- she or her company provide 

         4   services to the state of Hawaii?

         5        A.   Not that I'm aware of, other than through the 

         6   monitor's office.

         7        Q.   How about to McKinley, though?

         8        A.   No, sir.

         9        Q.   Now, the meetings, then, that -- where you met with 

        10   the technical assistance panel, including the other 

        11   individuals as you've already enumerated for us, the meetings 

        12   were -- the purpose of the meetings, I should say, was to see 

        13   how well you were doing towards compliance?

        14        A.   Yes.

        15        Q.   And that panel was to be providing assistance, 

        16   then, to the other members of the state of Hawaii that were 

        17   there to, I guess, give them advice as to how to achieve 

        18   compliance?

        19        A.   Yes.

        20        Q.   Did it appear to you that these meetings, as far as 

        21   the types of information that was imparted from them to you, 

        22   was very technical information or did it appear to be 

        23   practical stuff or what?

        24        A.   A combination of both, and when I say a combination 

        25   of both, they were looking at it with a different set of 



                            RALPH ROSENBERG COURT REPORTERS
                     OFC:  (808) 524-2090     FAX:  (808) 524-2596


                                                                        52



         1   eyes, looked -- outside looking in but having the technical 

         2   kinds of body of knowledge or skills that we would need or 

         3   that perhaps we have but we were never -- we didn't use it to 

         4   the level that we were capable of.

         5        Q.   All right.  Now, let me ask it this way, maybe it 

         6   might shorten the process.  To your knowledge, Ms. Hamamoto, 

         7   and based upon your personal involvement with the panel 

         8   during the time it was in existence and that you were 

         9   involved with it, did it appear that anything that the panel 

        10   was doing was something that might be considered proprietary 

        11   or that ought to be kept in confidence, anything like that?

        12        A.   Not that I'm aware of.

        13        Q.   Essentially, the panel was functioning to help the 

        14   state achieve compliance?

        15        A.   To the best of my knowledge, yes.

        16        Q.   Using their particular special skills and knowledge 

        17   that they had, in other words, to give advice to the state as 

        18   to how to achieve compliance, a very public matter, right?

        19        A.   Yes.

        20        Q.   Now, I was going to ask you a question about this.  

        21   Have you met a Mr. Howard Schrag?

        22        A.   No, sir.

        23        Q.   Do you know whether or not Mr. Howard Schrag is the 

        24   husband of Judy Schrag?

        25        A.   I believe that is her husband.



                            RALPH ROSENBERG COURT REPORTERS
                     OFC:  (808) 524-2090     FAX:  (808) 524-2596


                                                                        53



         1        Q.   Just based on what you have heard in the course of 

         2   your work, you believe that is to be correct?

         3        A.   Yes.

         4        Q.   Ms. Schrag, as far as we know, works under the -- a 

         5   company name, Education and Human Systems Group.  Are you 

         6   aware of that?

         7        A.   No, sir.

         8        Q.   You have not seen letterhead with that name on it 

         9   coming from Ms. Schrag?

        10        A.   No, sir.

        11        Q.   Do you know -- and I think I know the answer, but I 

        12   need to ask you.  Do you know whether or not Howard Schrag is 

        13   a co-principal in that company?

        14        A.   No.

        15        Q.   You don't know?

        16        A.   No, I don't know, sir.

        17        Q.   Do you know why -- I had pointed it out to you 

        18   during the break so you would have a little time to look at 

        19   it, Ms. Hamamoto.  We have what has been provided by your 

        20   department what is entitled encumbrance listing for EDN 150, 

        21   and my understanding is that it is an encumbrance -- list of 

        22   encumbrances for the fiscal year that ended June 30th, 2001.

        23        A.   Yes.

        24        Q.   This past fiscal year.  And I see where one of the 

        25   items on page 28 -- 382 or 383, I'm not sure.  383 it looks 



                            RALPH ROSENBERG COURT REPORTERS
                     OFC:  (808) 524-2090     FAX:  (808) 524-2596


                                                                        54



         1   like -- has an item that was encumbered, I believe, on March 

         2   13th and the vendor name is Howard Schrag and the amount is 

         3   $15,350 even.  Do you have an idea what that might be for?

         4        A.   No, sir.

         5        Q.   You're not aware that Howard Schrag had ever 

         6   provided services to the state of Hawaii?

         7        A.   Not to my knowledge.

         8        Q.   This would suggest, though -- what I just showed 

         9   you and what we're looking at would suggest that, in fact, 

        10   Howard Schrag provided services to the state of Hawaii for 

        11   which he was paid $15,350?

        12        A.   Yes.

        13        Q.   Would you do the committee a favor by researching 

        14   that to see why that encumbrance was made?  In other words, 

        15   what types of services and whether in fact it was performed 

        16   and if in fact that amount was paid.

        17        A.   Yes, I will.

        18        Q.   Thank you.  I think from your prior testimony, 

        19   Ms. Hamamoto, you weren't sure but it may be that Ms. Schrag 

        20   was the one who recommended Columbus?

        21        A.   I believe, yes.

        22        Q.   Not Dr. Groves?

        23        A.   I can't recall who it was.  It came through the 

        24   monitor and Judy Schrag, and he could have asked her and she 

        25   could have told us, you know, but it came through them.



                            RALPH ROSENBERG COURT REPORTERS
                     OFC:  (808) 524-2090     FAX:  (808) 524-2596


                                                                        55



         1        Q.   But you have a distinct recollection that 

         2   Ms. Schrag was somehow involved with that process --

         3        A.   Yes.

         4        Q.   -- out of which came the name Columbus Educational 

         5   Service?

         6        A.   Yes.

         7        Q.   Again, I'm not sure whether it's correct or not, 

         8   but are you aware as to whether or not Ms. Schrag had any 

         9   time of familial or professional relationship with anyone 

        10   that was, on the other hand, related to Columbus?

        11        A.   My understanding is that the board -- a board of 

        12   director, I believe it's Martha Fields --

        13        Q.   I'm sorry, what was the name?

        14        A.   Her name is Martha Fields who sits on their board.  

        15   I don't know if she's still on their board of directors now, 

        16   and Ms. Schrag know each other.  I don't know -- in a 

        17   professional -- I don't know the depth or extent of their 

        18   relationship, but these were members of the -- many of them 

        19   were former state directors of special education and 

        20   they -- I do believe Judy Schrag at one time was under 

        21   secretary for special education, Department of Education.

        22        Q.   I see.

        23        A.   So, you know --

        24        Q.   And to your knowledge, Ms. Schrag doesn't have any 

        25   business relationship with Columbus, does she?



                            RALPH ROSENBERG COURT REPORTERS
                     OFC:  (808) 524-2090     FAX:  (808) 524-2596


                                                                        56



         1        A.   Not that I'm aware of.

         2        Q.   Again, let me ask the question this way.  If in 

         3   fact Ms. Schrag had some relationship with Columbus or had 

         4   some familial relationship with someone that was affiliated 

         5   with Columbus, that would have been something that you 

         6   believe she should have told you at that point in time?

         7        A.   Yes.

         8        Q.   And again, I'm not saying it's fact, but she did 

         9   not tell you anything of that nature, did she?

        10        A.   No.  Only that she -- when the name came and after 

        11   we started to talk with them and we asked about their 

        12   credentials and how solid were they, she said yes, they had 

        13   good people who sat on the board so that these people would 

        14   be able to ensure that whoever Columbus hires or how they set 

        15   up their infrastructure met the needs of special education or 

        16   special needs.

        17        Q.   All right.  Who is the person who Columbus had come 

        18   down here and man the Columbus Educational Services office in 

        19   Honolulu?

        20        A.   Her name is Diane Sydoriak.

        21        Q.   And she is an employee, to your knowledge, an 

        22   employee of Columbus?

        23        A.   Yes.

        24        Q.   And are you aware as to whether Ms. Sydoriak had 

        25   any relationship, business or otherwise, with Ms. Schrag?



                            RALPH ROSENBERG COURT REPORTERS
                     OFC:  (808) 524-2090     FAX:  (808) 524-2596


                                                                        57



         1        A.   Relationship, yes, because Diane Sydoriak retired 

         2   as the state director of special education for the state of 

         3   Arkansas, and as I mentioned a few minutes ago, the state 

         4   directors have their own association.  In fact, they are 

         5   having their national association conference now, and it's a 

         6   very tight group, knowledgeable group.  It's very few members 

         7   of it.  So that relationship exists.

         8        Q.   I see.  No other relationship of which you're 

         9   aware?

        10        A.   None that I -- I know they've worked together 

        11   because they've worked as a -- consultants to us in helping 

        12   us with our IEP processing, so --

        13        Q.   Who is that?

        14        A.   Diane Sydoriak and Judy Schrag and others.

        15        Q.   Diane has also worked as a consultant?

        16        A.   I don't know if she -- I don't know if she has 

        17   worked as a consultant for pay or she has discussed in 

        18   dialogue the ideas.  So I don't know if it was an informal 

        19   let's talk story or it was a formal you're under contract.

        20        Q.   I see.  And of course you don't know if the 

        21   monitoring project may have retained her to provide 

        22   consulting services?

        23        A.   I do not know that, sir.

        24        Q.   I saw a term or phrase in-kind services, and I 

        25   think it may have been related to Columbus.  Do you know what 



                            RALPH ROSENBERG COURT REPORTERS
                     OFC:  (808) 524-2090     FAX:  (808) 524-2596


                                                                        58



         1   that might be?

         2        A.   No.

         3        Q.   To provide in-kind services?

         4        A.   No.  I would have to take a look.  The only in-kind 

         5   that I could -- no.  Because if -- they were helping us to 

         6   bring up our capacity for recruitment and retention, but we 

         7   are paying for that, so it's not in-kind.  They need to 

         8   provide that -- they will provide that -- they are providing 

         9   that service to us.

        10        Q.   Okay.  I asked you a few questions about Mr. Ray 

        11   Foster.  You know Mr. Foster, do you not?

        12        A.   Yes.

        13        Q.   How did you become acquainted with him?

        14        A.   I had met him when he conducted the conference on 

        15   training.  The three times I met him it was in relationship 

        16   to a training conference or a training meeting.  That was my 

        17   only dialogue with him.

        18        Q.   Was that a training meeting related specifically to 

        19   the use of the service testing instrument we've referred to?

        20        A.   Yes, as they prepare the reviewers for service 

        21   testing.

        22        Q.   And was Mr. Foster, then, in the lead capacity of 

        23   that training session with the services testing instrument?

        24        A.   I believe he was.

        25        Q.   And was it your understanding that Mr. Foster had 



                            RALPH ROSENBERG COURT REPORTERS
                     OFC:  (808) 524-2090     FAX:  (808) 524-2596


                                                                        59



         1   either developed or in some fashion owned this service 

         2   testing instrument for which he was giving training?

         3        A.   No, I -- my understanding was that he was most 

         4   knowledgeable and he worked with Dr. Groves and Dr. Groves 

         5   had employed him, is my understanding, to be the trainer for 

         6   the service testing.  He had the most knowledge of it.

         7        Q.   You just said something that I wanted to ask you 

         8   more questions about.  The process, then, where Ray Foster 

         9   came to Hawaii to provide services was one in which, to your 

        10   understanding, Dr. Groves and the Felix monitoring project 

        11   retained Mr. Foster?

        12        A.   To my knowledge, yes.

        13        Q.   And it was through the Felix monitoring project, 

        14   headed by Dr. Groves, that Mr. Foster was paid for his fees, 

        15   for his time?

        16        A.   Yes.

        17        Q.   And you have no idea what that was?

        18        A.   For the training, sometimes he did the reviews, he 

        19   went along to ensure the quality control that the reviewers 

        20   were doing, what they should be doing, ought to be doing, so 

        21   that I knew he came.  I don't know the specific dates when he 

        22   was here.  The times that I have met him have been at the 

        23   conference or the training, but I know he has been here other 

        24   than the times that I know of.

        25        Q.   And you don't know how much he was paid for his 



                            RALPH ROSENBERG COURT REPORTERS
                     OFC:  (808) 524-2090     FAX:  (808) 524-2596


                                                                        60



         1   fees?  I'm not suggesting he shouldn't have been paid, but 

         2   you don't now how much?

         3        A.   No, I don't, sir.

         4        Q.   Now, though, am I to understand, though, based on 

         5   your prior testimony, Ms. Hamamoto, that you were not aware 

         6   that Mr. Foster had any business relationship with 

         7   Dr. Groves?

         8        A.   Other than that -- no.  I think you asked me if I 

         9   knew he was an owner in the company, that I don't know, but I 

        10   do know that the relationship -- my understanding is that he 

        11   provided the service testing reviewers the training and he 

        12   went along for quality assurance for the training, and that's 

        13   the relationship that I've known him with Dr. Groves and the 

        14   state.

        15        Q.   So that it appears to be a relationship, though, 

        16   where Dr. Groves retained Mr. Foster to provide you services?

        17        A.   Yes.

        18        Q.   But it does not appear, though, from your 

        19   recollection and your knowledge that Mr. Foster and 

        20   Mr. Groves were co-shareholders in a corporation, for 

        21   example?

        22        A.   No, sir, I didn't know of that.

        23        Q.   And I asked you this before.  I just want to 

        24   clarify.  Did you know if anyone had ownership rights to that 

        25   service testing instrument, who it was that had ownership 



                            RALPH ROSENBERG COURT REPORTERS
                     OFC:  (808) 524-2090     FAX:  (808) 524-2596


                                                                        61



         1   interest, whether it be a person or persons or a company?

         2        A.   No.

         3        Q.   Now, we had received testimony from Dr. Houck, the 

         4   former director of program support and development.  It was 

         5   his opinion when viewed as a state-wide system -- as Hawaii 

         6   is a state-wide system, unique to the country -- had met 85 

         7   percent compliance, the 85 percent scope of compliance 

         8   standard set by the court monitor.  If we were to look at the 

         9   system as it is a state-wide system, not in the various 

        10   complexes, would you agree with Dr. Houck that as of when 

        11   Dr. Houck testified a month or two ago that the state had 

        12   achieved 85 percent compliance?

        13        A.   You know, Mr. Kawashima, I'll make this one short 

        14   because I thought about what Dr. Houck said at the time, and 

        15   at the time if you take a look at the complexes that were 

        16   tested and those that failed and those that passed, yes, that 

        17   85 percent would be accurate at that instant in time.

        18        Q.   But you seem to qualify that answer.

        19        A.   Because there were still a lot of complexes that 

        20   hadn't gone through the compliance efforts yet, and I mean 

        21   the compliance presentations and they have been.  So for 

        22   myself right now, as we are passing service testing on a 

        23   weekly basis and the compliance presentations are being done 

        24   and they are receiving their full compliance, I feel a lot 

        25   better because I know that we've had time.  It's an issue of 



                            RALPH ROSENBERG COURT REPORTERS
                     OFC:  (808) 524-2090     FAX:  (808) 524-2596


                                                                        62



         1   time, and the longer we go, the stronger the scores are, the 

         2   more solid they are.  I feel a lot better now.

         3        Q.   All right.  We've been using the term compliance.  

         4   I understand that the process through which the state has 

         5   gone to achieve compliance was sort of a two-step process 

         6   where you -- a complex received provisional compliance; is 

         7   that the right term?

         8        A.   Yes.

         9        Q.   And then full compliance?

        10        A.   Yes.

        11        Q.   And the full compliance really was what you had to 

        12   do is put on this presentation, right?

        13        A.   Yes.

        14        Q.   Now, were you making a distinction in your mind 

        15   when you thought about what Dr. Houck said as to whether or 

        16   not the state was in compliance as to whether we were using 

        17   the phrase provisional compliance or full compliance?

        18        A.   Yes.

        19        Q.   We were provisionally in compliance 85 percent as 

        20   of when Dr. Houck testified?

        21        A.   For those complexes that were tested, because there 

        22   were many that hadn't been tested yet.

        23        Q.   I see.  So as far as being in full compliance, you 

        24   would not agree, 85 percent when Dr. Houck testified?

        25        A.   Full compliance? 



                            RALPH ROSENBERG COURT REPORTERS
                     OFC:  (808) 524-2090     FAX:  (808) 524-2596


                                                                        63



         1        Q.   Uh-huh.

         2        A.   Can you repeat that question again?

         3        Q.   If we were to look at full compliance, obviously, 

         4   we did not have 85 percent full compliance?

         5        A.   (Witness nods.)

         6        Q.   Now, whose decision was it -- are you familiar with 

         7   the matter of someone making a decision that in a state-wide 

         8   system such as Hawaii that the compliance efforts ought to be 

         9   looked at from a complex-by-complex standpoint as opposed to 

        10   a state-wide?

        11        A.   The question is was I aware?

        12        Q.   Yes. 

        13        A.   That it was going to be complex by complex?

        14        Q.   No.  My question is:  Are you familiar with the 

        15   fact that this decision was made at some point in time?

        16        A.   Yes.

        17        Q.   Do you know when it was made?

        18        A.   I believe it was made after the -- when they first 

        19   began the service testing, I think they were looking at 

        20   districts.  And when they did it by districts they realized 

        21   that it was too -- the districts in Hawaii are much too large 

        22   and you would not be able to understand or be able to see 

        23   that system of care or whether they were doing it.  So to 

        24   make it so that it had meaning and the people who were 

        25   working at it, it was decided that complexes would be a 



                            RALPH ROSENBERG COURT REPORTERS
                     OFC:  (808) 524-2090     FAX:  (808) 524-2596


                                                                        64



         1   better indicator or a reflection of whether we were making 

         2   compliance so we could track students from K through 12 

         3   through complex.

         4        Q.   And do you know when that decision was made?

         5        A.   I want to say it was made probably just about the 

         6   time or prior to my coming on board in March of '99, because 

         7   I remember going to a service testing in-servicing in 

         8   February and it was talking about how we were now looking at 

         9   complexes because the districts, it would be -- the 

        10   variation, if you took Honolulu from Kaiser to Farrington, 

        11   would be almost impossible, very difficult.

        12        Q.   What knowledge do you have, then, Ms. Hamamoto, as 

        13   to whether or not the court monitor had anything to do with 

        14   that decision being made, to look at the system on a 

        15   complex-by-complex basis?

        16        A.   I have no knowledge of that.

        17        Q.   I believe that it would be your opinion that it 

        18   would not be possible to look at the state -- or not be 

        19   practical to look at the state on a state-wide basis if you 

        20   wanted to look at compliance, because it is a state-wide 

        21   system?

        22        A.   If I walk through what you've just asked me, I 

        23   believe we can do it on state-wide basis, but we would have 

        24   to break down the components of what goes into that 

        25   state-wide basis and the basis, then, would be the complexes.



                            RALPH ROSENBERG COURT REPORTERS
                     OFC:  (808) 524-2090     FAX:  (808) 524-2596


                                                                        65



         1        Q.   Anyway?

         2        A.   Yes.

         3        Q.   You're saying it would be the complexes anyway?

         4        A.   Yes.

         5        Q.   A few more areas, Ms. Hamamoto.  Dr. Houck 

         6   testified that he believed that the legislature had always 

         7   provided what was required by the Department of Education.  

         8   Do you agree with that statement?  In the time that, of 

         9   course, you were involved with that aspect of the department.

        10        A.   Mr. Kawashima, I would ask that you qualify always 

        11   provided because I don't know in what context Dr. Houck was 

        12   referring to that.

        13        Q.   That's a good point.  He was responding to 

        14   questions that we had asked him relating to Felix and the 

        15   Felix consent decree.  All right, so to the extent that you 

        16   have knowledge about it because you were here or perhaps you 

        17   may not have been here but learned of it subsequently in 

        18   looking historically at the department, would you agree that 

        19   the legislature has always provided what was required by the 

        20   Department of Education in its attempts to comply with the 

        21   Felix consent decree?

        22        A.   Yes.

        23        Q.   And as far as this committee's investigation, I 

        24   trust from your statement previously -- your testimony 

        25   previously, you, of course, have no quarrels with what the 



                            RALPH ROSENBERG COURT REPORTERS
                     OFC:  (808) 524-2090     FAX:  (808) 524-2596


                                                                        66



         1   committee is doing?

         2        A.   No, sir.

         3        Q.   And as far as the committee's efforts and the work 

         4   it has done thus far, based on your knowledge of the 

         5   compliance efforts by the state, that the committee and its 

         6   efforts and its work has not in any way negatively affected 

         7   the compliance efforts by the state of Hawaii?

         8        A.   No, sir.  In fact, if I had to say, this is a data 

         9   decision or a data-supported answer, since the investigative 

        10   committee has started, we're still coming into compliance, 

        11   our complexes are still passing, they are moving along.  In 

        12   addition, the committee has an unanticipated result, which is 

        13   a plus for us, it's forced us to talk to each other within 

        14   the department.  It's also forced us to take a good look at 

        15   our records and what we do.  So the answer is it has not 

        16   hampered what we've been doing.

        17                  SPECIAL COUNSEL KAWASHIMA:  Thank you very 

        18   much, Ms. Hamamoto.  I have no further questions.

        19                  CO-CHAIR REPRESENTATIVE SAIKI:  Thank you.  

        20   Members, we'll proceed with questions by the committee 

        21   members.  We'll begin with Vice-Chair Oshiro, followed by 

        22   Vice-Chair Kokubun.

        23                  VICE-CHAIR REPRESENTATIVE OSHIRO:  Thank you 

        24   Co-Chair Saiki.

        25                            EXAMINATION



                            RALPH ROSENBERG COURT REPORTERS
                     OFC:  (808) 524-2090     FAX:  (808) 524-2596


                                                                        67



         1   BY VICE-CHAIR REPRESENTATIVE OSHIRO:  

         2        Q.   Good morning, Ms. Hamamoto.

         3        A.   Good morning.

         4        Q.   I just wanted to get clarification in a little bit 

         5   different area, that being the Na Laukoa contract.  We've 

         6   heard previous information regarding, I guess, a presentation 

         7   that was done by them in July of 2000 where they were trying 

         8   to be a provider of targeted technical assistance.  Were you 

         9   present at that July 7th presentation?

        10        A.   Representative Blake Oshiro, no, I was not at that 

        11   presentation, and I should also qualify that the technical 

        12   assistance contract with PREL and vis-a-vis Na Laukoa was the 

        13   responsibility and under the authority of Dr. LeMahieu.

        14        Q.   Okay.  Can I just get a little bit more 

        15   clarification, though, because I just wanted to find out what 

        16   the current status of it is.  We were looking at some of the 

        17   previous information issued by a Robert Golden, and he said 

        18   there was a meeting in about May of this year where targeted 

        19   technical assistance as an overall concept was looked at 

        20   again and it was deemed to be a failure.  You were present at 

        21   that meeting along with Deb Farmer and some other people who 

        22   had sort of come up with this assessment; do you recall 

        23   anything to that effect?

        24        A.   In May of this year? 

        25        Q.   Yes. 



                            RALPH ROSENBERG COURT REPORTERS
                     OFC:  (808) 524-2090     FAX:  (808) 524-2596


                                                                        68



         1        A.   Okay.  No, I don't remember the specifics as far as 

         2   it being -- how it was listed out as being a failure.

         3        Q.   Okay.  Do you happen to remember anything about, I 

         4   think, a meeting being held with Mr. Golden and a Deb Farmer 

         5   and yourself wherein Deb Farmer complained about, I guess, 

         6   the lack of knowledge or abilities of Na Laukoa and she felt 

         7   she was being overtaxed in having to train them to actually 

         8   do their job so that you had recommended that she ask -- to 

         9   be taken off of this advisory committee; do you recall 

        10   something that?

        11        A.   Yes, I do remember that meeting and that the advice 

        12   that I gave her was to submit a memo or a request to 

        13   Dr. LeMahieu.  As I stated just a few minutes ago, that was 

        14   under his jurisdiction.  So I did not feel that I was able to 

        15   counter or to make decisions directly affecting the contract 

        16   and what he may or may not have wanted for it.

        17        Q.   Okay.  But did that in any way surprise you that 

        18   Ms. Farmer came to you complaining about having to actually 

        19   train them and it became an overtaxing task for her?

        20        A.   No, not that she came to me, because in the chain 

        21   of command it would go to the deputy before it goes to the 

        22   superintendent.  In relationship to her concerns of her work 

        23   load, I was not able to address that because I did not know 

        24   the specifics of what was asked her or why they asked her to 

        25   do any of the work that she had mentioned.



                            RALPH ROSENBERG COURT REPORTERS
                     OFC:  (808) 524-2090     FAX:  (808) 524-2596


                                                                        69



         1        Q.   Okay.  Moving on to a different area, I just wanted 

         2   to ask about the Columbus contract.  I think Mr. Kawashima  

         3   was talking about, I guess, how in a lot of ways we see the 

         4   Columbus contract being highly advantageous to Columbus, and 

         5   I think one of our main concerns is when we try to break down 

         6   the numbers, and this was confirmed by Ms. Yoshioka, we 

         7   didn't really see any sort of, I guess, monitoring or quality 

         8   controls over the breakdown of how much we were paying them. 

         9             Specifically, this is as she confirmed to us:  We 

        10   were paying them $112,000 per, I guess, teacher that we would 

        11   eventually pick up.  10,000 of that would be for relocation 

        12   costs, so that would be $102,000 per year per teacher.  The 

        13   maximum salary range she gave us was 42,000, so from the 

        14   100,000, you take off 42,000, then you take off an additional 

        15   30 percent for whatever employment benefits they may have, 

        16   and after that you end up with this lump sum of about $47,000 

        17   that isn't going to the teacher and that is just going to 

        18   Columbus and it's not going toward any kind of office 

        19   overhead or travel expenses. 

        20             The only two things this $47,000 is going for is 

        21   either for incentives to bring the teacher here or to keep 

        22   the teacher here or going as profit to Columbus.  Now, on one 

        23   hand we see 42,000 in salary going to the teacher, on the 

        24   other hand we see 47,000 going to Columbus, and I guess our 

        25   confusion is we asked her what sort of monitoring or 



                            RALPH ROSENBERG COURT REPORTERS
                     OFC:  (808) 524-2090     FAX:  (808) 524-2596


                                                                        70



         1   reassurances you had over this 47,000, and she said she had 

         2   none.  They didn't have to provide any paperwork as to how 

         3   this 47,000 was put out. 

         4             Now, all of that I put forth as a context because 

         5   our concern is that we recently heard that this Columbus 

         6   contract has been, I guess, renewed and I wanted to know if 

         7   there's been any sort of further requirements or monitoring 

         8   that is going to be done as to how this money is broken down?

         9        A.   Representative Oshiro, maybe I can shed some light 

        10   on all the questions you've asked me, which is quite a lot.  

        11   So let me see if I answer them all, and if I don't, will you 

        12   please ask me after that, okay, but I just passed out the 

        13   chronology for you.  If you will take a look at that, and 

        14   maybe I can explain, and if you have your copy of the 

        15   contract, I can explain tracks 1, 2, and 3, and I think that 

        16   would help. 

        17             To begin with, there are three tracks.  Track 1 is 

        18   the mainland offices and the management services.  Track 2 is 

        19   the Hawaii offices and the staff support.  Track 3 represents 

        20   the individual teacher's salary as well as the professional 

        21   services that Columbus offers to us or -- not offers but what 

        22   they provide for us, and that would be the building capacity 

        23   within the system, our expectation, and their training of 

        24   their people, because they hold their own separate trainings 

        25   for these teachers.  During institute week they had their own 



                            RALPH ROSENBERG COURT REPORTERS
                     OFC:  (808) 524-2090     FAX:  (808) 524-2596


                                                                        71



         1   training on special education. 

         2             It also involves that they are to meet with the 

         3   individual principals on a regular basis, and I'm looking at 

         4   monthly, to ensure that the services provided by the teachers 

         5   to the school and the principal are what we expect.  They 

         6   also take care of -- if, let's say, the teacher gets sick, 

         7   while we provide the sub, we charge them, so we get 

         8   reimbursement for the sub.  All of those services are 

         9   contained in track 3.  It's not just salaries.  It's also the 

        10   professional oversight that we expect from a management 

        11   company for their employees.

        12        Q.   Okay.  I see that my time is up, but I'll have some 

        13   follow-up.  Thank you very much.

        14                  CO-CHAIR REPRESENTATIVE SAIKI:  Members, we 

        15   will adhere to the five-minute rule, and we'll also offer 

        16   two-minute follow-ups per member.

        17             Vice-Chair Kokubun, followed by Representative Ito.

        18                  VICE-CHAIR SENATOR KOKUBUN:  Thank you, 

        19   Co-Chair Saiki.

        20                            EXAMINATION

        21   BY VICE-CHAIR SENATOR KOKUBUN:

        22        Q.   Ms. Hamamoto, I wanted to ask a little bit about 

        23   within the context of the Columbus contract the 

        24   sustainability issue which has been raised, particularly by 

        25   the plaintiff attorneys most recently, but how can the state 



                            RALPH ROSENBERG COURT REPORTERS
                     OFC:  (808) 524-2090     FAX:  (808) 524-2596


                                                                        72



         1   improve its recruitment, you know, and retention?  Seeing 

         2   what Columbus has done, is there something that we can do to 

         3   improve our efforts?

         4        A.   Yes, and we have begun efforts -- we engage 

         5   currently in efforts not only in our recruiting out of state, 

         6   we're looking at international, specifically Canada, and the 

         7   Canadians have some good special education schools, colleges 

         8   that we're looking at.  We also revamped our current 

         9   recruitment efforts on the mainland on what we're doing and 

        10   how we're setting up for our spring fair -- our spring 

        11   recruitment. 

        12             We also do mass interviews now locally and on the 

        13   mainland, and we're also doing our higher education 

        14   certification, how to get more teachers there, but as we're 

        15   allowing individuals to go through the certification and the 

        16   training -- or the process to become a teacher, what do we do 

        17   now?  We also have beefed up -- when we have people come to 

        18   the state now, we have our own, quote, welcome wagon where 

        19   we're going to not only just -- before it was come here, 

        20   here's your ticket, here's your school, get there.  So what 

        21   we've done is we've set up a unit which will now meet them, 

        22   help them climatize to Hawaii, transportation, help them get 

        23   to the schools, work with them, help them find lodgings. 

        24             So what we want to do is what Columbus does, 

        25   really.  Columbus does this when they bring a person over and 



                            RALPH ROSENBERG COURT REPORTERS
                     OFC:  (808) 524-2090     FAX:  (808) 524-2596


                                                                        73



         1   the transition, so we're learning from them the kinds of 

         2   things that we can do on our own so that we can help people 

         3   to transition to Hawaii as teachers with the intent of 

         4   remaining in Hawaii as teachers.

         5        Q.   Has there been an issue about retention?

         6        A.   Yes.

         7        Q.   In terms of -- I'm talking specifically about the 

         8   teachers that have been recruited by Columbus.

         9        A.   What we've looked at is a few of the teachers -- 

        10   and that handout that I gave you on the back lists exactly 

        11   how many teachers have left, for various reasons.  Some of 

        12   them has been because of September 11th, others have personal 

        13   problems that they just had to go back for, but we've talked 

        14   about retention, and I know that Dr. LeMahieu had asked 

        15   Columbus -- we haven't worked out the details because we are 

        16   not there yet.  We will be in about a year, but when it's 

        17   time for their contract to be ended, what kind of -- what can 

        18   we do with the teachers that will no longer be in Columbus 

        19   working for Columbus but may want to transition to be Hawaii 

        20   DOE teachers, and what would we look like, and at that time 

        21   the dialogue would be including HSTA.  So we know -- well, 

        22   they are our partners in all this, yeah, so we have to take 

        23   them into mind as we go down that road.  So it would be based 

        24   on our current salary structure for teachers, so it's clearly 

        25   understood that what they are making now, should they 



                            RALPH ROSENBERG COURT REPORTERS
                     OFC:  (808) 524-2090     FAX:  (808) 524-2596


                                                                        74



         1   transition into Hawaii later on, will not look like what they 

         2   currently have.

         3        Q.   So you have assessed and analyzed what that 

         4   transition is going to look like, what kind of impact that 

         5   they may have fiscally in terms of the collective bargaining 

         6   agreement that will be coming up again?

         7        A.   Yes.

         8        Q.   Representative Oshiro was asking about the 

         9   extension of the contract.  I'm not sure how you're phrasing 

        10   it.  Is it an amendment to the contract?

        11        A.   Yes.  If you take a look at that handout that I 

        12   gave you --

        13        Q.   Yes.

        14        A.   Item number one, that was the original contract for 

        15   three years.

        16        Q.   Right.

        17        A.   Item number five, when we looked at what we had, 

        18   our contract was amended down to 40 million, and we've done 

        19   amendments every time we've changed the numbers so they 

        20   reflect currently what is going on, and if you take a look at 

        21   the last page on item number 15, this is exactly how we've 

        22   broken it down and what we've -- well, fiscal year '01, that 

        23   would have been '01, yeah, '01, we actually -- well, we 

        24   allocated $7 million.  Actual expenditures was 4.8 million.  

        25   For fiscal year 2, which is what we're currently in, we 



                            RALPH ROSENBERG COURT REPORTERS
                     OFC:  (808) 524-2090     FAX:  (808) 524-2596


                                                                        75



         1   expect to spend 25 million.  Fiscal year 3, we will be 28, 

         2   and because the contract is from September 1st to August 

         3   31st, it moves two months into fiscal year '04.  So there is 

         4   no extension of the contract.  It is the original three 

         5   years, but the contract life goes from September through 

         6   August, and based upon our fiscal year, which is July through 

         7   August -- June, we have -- we put in the proper or the 

         8   correct fiscal year notation.  The contract should cost us no 

         9   more than 63 million. 

        10        Q.   That's your projected cost?

        11        A.   For three years, and that includes last year as 

        12   well.

        13        Q.   My time is up, but just for my own clarification, 

        14   so you're saying that in items one and two, the years 1, 2 

        15   and 3 align with, what, fiscal year '01, '02, '03?

        16        A.   And part of '04, and the reason why we cleared it 

        17   up this time is because our last contract that we did -- I 

        18   spent -- I was -- I had to do the nitty-gritty, so I wanted 

        19   it to be reflected on what we do.  It's just me.

        20        Q.   This is clarification.  And in terms of meeting the 

        21   final benchmark for the recruitment and hiring of licensed 

        22   teachers in March, how does it look from your perspective?

        23        A.   It looks good because we have also -- have been in 

        24   discussions with the court that the benchmark for March 

        25   should also take into account where we will be in September 



                            RALPH ROSENBERG COURT REPORTERS
                     OFC:  (808) 524-2090     FAX:  (808) 524-2596


                                                                        76



         1   rather than where we are currently, because it has to do with 

         2   retirements and where we expect to be.

         3        Q.   That would be September of 2002, then?

         4        A.   Yes.

         5        Q.   I see. Thank you very much.

         6                  CO-CHAIR REPRESENTATIVE SAIKI:  Representative 

         7   Ito, followed by Senator Buen.

         8                  REPRESENTATIVE ITO:  Thank you very much, 

         9   Co-Chair Saiki.

        10                            EXAMINATION

        11   BY REPRESENTATIVE ITO:  

        12        Q.   Good morning, Ms. Hamamoto.  I just wanted to 

        13   follow up on Senator Kokubun.  You know, you mentioned HSTA 

        14   was involved with the contract.  You know, what was the 

        15   position of HSTA at that time?

        16        A.   HSTA does not agree, does not condone, they are not 

        17   support -- well, they are not supportive of Columbus 

        18   contract, and rightly so.  They are aware of it.  They were 

        19   informed that we would be limiting it to the neighbor 

        20   islands, and we have extended to Oahu this last time because 

        21   of the shortage.  They are aware of it, but they are aware -- 

        22   their awareness is not an indication of agreement or support, 

        23   and I do believe their knowledge includes the court order and 

        24   what we were required by the court to do.

        25        Q.   So what are they doing to help the situation?



                            RALPH ROSENBERG COURT REPORTERS
                     OFC:  (808) 524-2090     FAX:  (808) 524-2596


                                                                        77



         1        A.   I don't know, Representative Ito.

         2        Q.   Okay.  You know, we have a lot of certified special 

         3   ed teachers in the DOE but they are not in special ed?

         4        A.   Correct.

         5        Q.   And what are -- what is the department doing to try 

         6   to encourage them or try to, you know, tempt them to come 

         7   back into special ed?

         8        A.   Well, we have the incentive bonus of $10,000 should 

         9   they choose to, but as you know, being a former teacher, 

        10   teachers get very committed to the position and what they are 

        11   doing.  However, the dual certified teachers that we have, 

        12   have helped us to meet the benchmark of the 85 percent or 

        13   those schools that have less than 50 percent teachers, 

        14   because those dual certified teachers in regular education 

        15   have special education teachers, and the court has agreed 

        16   during this round of talk that they will allow us to consider 

        17   them, those teachers, as supports for those schools that have 

        18   not met the benchmark.  So at this point in time those dual 

        19   certified teachers are helping us meet compliance efforts.

        20        Q.   You know, I just had this fax come into my office 

        21   two days ago, and this is about medical monitoring, 

        22   medication monitoring. 

        23        A.   Oh, meds monitoring for school-based behavioral 

        24   health, yes.

        25        Q.   Do you know about that?



                            RALPH ROSENBERG COURT REPORTERS
                     OFC:  (808) 524-2090     FAX:  (808) 524-2596


                                                                        78



         1        A.   Yes.

         2        Q.   You know, the medical monitoring or treatment 

         3   services, it says over here medical monitoring or treatment 

         4   services are not -- are not, according to IDEA, not 

         5   appropriate, yet we're doing this, you know, like the 

         6   Windward district right now has spent $80,000 to provide 

         7   medication monitoring services during the period of July to 

         8   November 2001, and what happened is the DOE is paying 

         9   physicians a minimum of one hour at the rate of $120 per hour 

        10   for these services.  In contrast, Mediquest and Medicaid pays 

        11   physicians 15 minutes to provide medication monitoring.  So 

        12   now the physicians are asking to switch to DOE payment since 

        13   the DOE pays at a higher rate.  Can you comment on that?

        14        A.   I can give you some insights.  I don't know the 

        15   specifics of all that you mentioned.  My understanding is 

        16   that with the reauthorization of IDEA, if meds monitoring is 

        17   part of the related services so that the child can benefit 

        18   from education, then the federal government through their 

        19   regulations have deemed that it would be an appropriate 

        20   related service and that meds monitoring by a psychiatrist, 

        21   because it's not about giving medication, it's about 

        22   prescribing medication that the student would need so they 

        23   would be able to manage themselves to benefit from education, 

        24   if that link is clearly stated, then education in this 

        25   particular case would be responsible.  And it is a change 



                            RALPH ROSENBERG COURT REPORTERS
                     OFC:  (808) 524-2090     FAX:  (808) 524-2596


                                                                        79



         1   from what the practice was prior, but it has come out in case 

         2   law that education agencies can pay for this kind of service.

         3        Q.   So right now --

         4        A.   And I believe that's what we're dealing with.

         5        Q.   So right now districts are paying for those Felix 

         6   class students with state funds, not federal funds?

         7        A.   Unless -- well, we're -- I don't know, and the 

         8   reason I don't know is because the districts have IDEA funds 

         9   which are federal funds that they can use for this purpose, 

        10   so there is federal funds available for this.

        11        Q.   Okay.  Well, I have over here we are not allowed to 

        12   use federal IDEA monies for this purpose because it would be 

        13   a misuse of federal funding?

        14        A.   I think we need to talk to them.

        15        Q.   Okay.  My time is up.  Thank you very much.

        16                  REPRESENTATIVE ITO:  Thank you very much, 

        17   Co-Chair.

        18                  CO-CHAIR REPRESENTATIVE SAIKI:  Senator Buen, 

        19   followed by Representative Kawakami.

        20                  SENATOR BUEN:  Thank you, Co-Chair Saiki.

        21                            EXAMINATION

        22   BY SENATOR BUEN:  

        23        Q.   Ms. Hamamoto, thank you for being here.  Can you 

        24   tell me with the special education teachers that are already 

        25   teaching, talk about retention?  Can you tell me what is the 



                            RALPH ROSENBERG COURT REPORTERS
                     OFC:  (808) 524-2090     FAX:  (808) 524-2596


                                                                        80



         1   DOE doing to help these teachers stay on their jobs?  Because 

         2   I've heard some -- from other witnesses who have testified 

         3   that they do have a lot of challenges going through the IEP 

         4   process and they are having a lot of difficulty from maybe 

         5   the principal or maybe from others and it's very difficult 

         6   for these teachers.  So what is the DOE doing to help these 

         7   special education teachers?

         8        A.   Senator Buen, let me begin my answer with the 

         9   statement that that is probably one of the most difficult 

        10   challenges we have because what the teachers are saying at 

        11   the bottom of this is how are you going to change working 

        12   conditions so that I will stay, and as you really know, 

        13   changing working conditions is not only looking at your 

        14   resources and allocating them in a manner which benefits, it 

        15   also means that there's a change in the training, and it's a 

        16   multi -- it's a multi-faceted task in changing working 

        17   conditions. 

        18             The department is currently engaged in that task.  

        19   We have tried to -- not tried to but probably the first one 

        20   that hits my mind when you talk about special education is 

        21   ISPED.  It has been a very long journey.  It has been a very 

        22   frustrating journey for many of us.  Fortunately, there is 

        23   light at the end of the tunnel and it's getting better.  We 

        24   will probably encounter other concerns that come up.  The 

        25   department's commitment is to address them as they come up 



                            RALPH ROSENBERG COURT REPORTERS
                     OFC:  (808) 524-2090     FAX:  (808) 524-2596


                                                                        81



         1   and to fix them so we are able to utilize them and help our 

         2   teachers. 

         3             In regards to many of the requirements for a 

         4   special education teacher, the reality is that it is governed 

         5   and it is directed by IDEA, which is the federal law, so 

         6   there are many compliance issues that we have no choices in 

         7   that must be dealt with, and then department's commitment is 

         8   how do we work with our teachers so that as we do our 

         9   compliance efforts, we can affect their conditions of work, 

        10   and conditions of work is not only the teacher allocation 

        11   methodology, which we're looking at for students to teachers, 

        12   which we've started our second round of how to work it to 

        13   make it better.  It also includes facilities.  Do we have 

        14   enough room for these facilities, do we have proper people 

        15   who can change, are we coaching our people. 

        16             So there are many issues, but it comes down to 

        17   working conditions and once the department -- and I believe 

        18   improving working conditions is a constant for an employer, 

        19   in this case the Department of Education.  It's not something 

        20   that you achieve and you put on the shelf, but it's 

        21   constantly what are we doing every day to improve working 

        22   conditions.  So I don't have an answer that says this is what 

        23   it is, but I know the areas that need to be addressed, need 

        24   to be fixed, and through time we expect that it will get 

        25   better.  So one year from now I expect it to be better, but I 



                            RALPH ROSENBERG COURT REPORTERS
                     OFC:  (808) 524-2090     FAX:  (808) 524-2596


                                                                        82



         1   also expect that there will be other concerns that I got to 

         2   address.  So it's a matter of every year making -- fixing 

         3   what we have, making it better, and as new issues come up, 

         4   how are we addressing those.

         5        Q.   I'm sure that you will be working on that very 

         6   closely, because we all are concerned about retention.  You 

         7   know, we can be hiring from the mainland and from Canada and 

         8   other places but to have these teachers -- you know, to 

         9   retain them and giving them the conditions -- the work 

        10   conditions that -- you know, I think we need to look at that 

        11   very closely because I've been hearing that there are a lot 

        12   of problems out there that the teachers are facing. 

        13             You know, you mentioned that we are hiring locally 

        14   as well.  So is this through the RISE program?  Is that the

        15   only way other than graduating from the university and these 

        16   teachers applying for positions?  Is RISE the only program 

        17   that you're looking at?

        18        A.   RISE is a certification program that the department 

        19   runs to certify teachers to teach special ed.  It's similar 

        20   to Chaminade, Phoenix, but for certification purposes, that 

        21   would be the program that the department has, yes.

        22        Q.   How many years does it take for a teacher to be 

        23   certified?

        24        A.   Through the RISE program?

        25        Q.   Through the RISE program.



                            RALPH ROSENBERG COURT REPORTERS
                     OFC:  (808) 524-2090     FAX:  (808) 524-2596


                                                                        83



         1        A.   If you have a degree in teaching but you're not 

         2   special education trained, it takes one school year or one 

         3   year.  If you have a college degree but you are not teacher 

         4   trained, it takes two years.  Part of the two years means we 

         5   need to give you the basic skills in teacher education, 

         6   pre-service.

         7        Q.   I see.  My time's up.  Thank you, Ms. Hamamoto.

         8                  CO-CHAIR REPRESENTATIVE SAIKI:  Representative 

         9   Kawakami, followed by Senator Slom.

        10                  REPRESENTATIVE KAWAKAMI:  Thank you, Co-Chair 

        11   Saiki.

        12                            EXAMINATION

        13   BY REPRESENTATIVE KAWAKAMI:  

        14        Q.   Hi, Ms. Hamamoto.  I wanted to ask about the other 

        15   two contracts, the Sun Belt and the EPS contract?

        16        A.   Okay.  Let me begin with Sun Belt.  Prior to the 

        17   state doing a -- one contract with Sun Belt, the individual 

        18   districts in the state had contracted with Sun Belt.  Sun 

        19   Belt, like Columbus, is an employment agency and they provide 

        20   the OT, which is occupational therapy, physical therapy, and 

        21   speech language professionals in our system.  Occasionally 

        22   when the department has been unable to fill the speech 

        23   language or the OT, PT numbers and Department of Health 

        24   weren't, we're still required by law to deliver these 

        25   services and we have contracted Sun Belt.  We realize that as 



                            RALPH ROSENBERG COURT REPORTERS
                     OFC:  (808) 524-2090     FAX:  (808) 524-2596


                                                                        84



         1   we move into the -- you know, after the contempt order that 

         2   having all these districts having all these individual 

         3   contracts wouldn't necessarily be the best use of resources, 

         4   so on a state-wide basis we contracted Sun Belt again to fill 

         5   these hard-to-fill areas. 

         6             EPS is another agency that is a referral system.  

         7   What EPS does is they refer -- they refer a name to us of a 

         8   teacher who may be interested in special education teaching 

         9   in Hawaii.  The department then must take in the application, 

        10   clear the application, screen it if they have the 

        11   credentials, and then do the interview, and if we hire, then 

        12   we will pay EPS.  But EPS just refers the name.  They do no 

        13   other service than a referral.

        14        Q.   I see.

        15        A.   To date we have one that we've been able to hire 

        16   through EPS.

        17        Q.   What about the psychologists?

        18        A.   The school psychologists, if we contract, we 

        19   would -- you mean a contract for school psychologists, I'm 

        20   sorry?

        21        Q.   Because for a while we were not having enough, so 

        22   did you look at -- you know, outside for such clinical 

        23   psychologists, et cetera?

        24        A.   Yes.  One of the models or one of the strategies we 

        25   use is what Mokihana does on Kauai in which what we've done 



                            RALPH ROSENBERG COURT REPORTERS
                     OFC:  (808) 524-2090     FAX:  (808) 524-2596


                                                                        85



         1   is we have a master's level psychologist or a master's level 

         2   therapist or social worker who is under the supervision of a 

         3   doctor's level to give them the coaching and the mentoring 

         4   because we are unable to get that level of school 

         5   psychologists into the system.  So we've looked at different 

         6   models with proper monitoring so we can assure the quality.

         7        Q.   So if we looked at those areas other than teachers, 

         8   regular classroom teachers, we have enough?  I mean, we're 

         9   not running into trouble?

        10        A.   No, we don't have enough, but we've been able 

        11   through aggressive recruitment, we've been managing to do -- 

        12   we've been managing to hold our own because we're also able 

        13   to contract for those services.  So in those areas, for those 

        14   that either work for us as employees or we have service 

        15   contracts with them.

        16        Q.   Okay.  The other question is on the Columbia.  You 

        17   had two -- there were two people hired from Columbus and they 

        18   worked here with the teachers that were hired.

        19        A.   Yes.

        20        Q.   How long -- we paid that contract.  What was it 

        21   like?

        22        A.   That's part of that track 2 for the Columbus 

        23   contract.  Their salary and their services here in Hawaii 

        24   are -- comes to us in track 2 of the invoice.

        25        Q.   So that's from Columbus to you?



                            RALPH ROSENBERG COURT REPORTERS
                     OFC:  (808) 524-2090     FAX:  (808) 524-2596


                                                                        86



         1        A.   Yes.

         2        Q.   So what would that amount be?

         3        A.   Let's see.

         4        Q.   Roughly.

         5        A.   I would have to look at the current contract, track 

         6   2.

         7        Q.   You can give it to us later.  Now, we paid airfare, 

         8   we paid for their salaries, et cetera while they were here, 

         9   and how long did they stay, go back, come back, et cetera?

        10        A.   Representative Kawakami, I don't know the specifics 

        11   of how long, but those two individuals are the office or the 

        12   staff in Hawaii that meet the teachers and these are the two 

        13   ladies that will go to each school or are going to each 

        14   school to visit the teachers, so they are on site.  They have 

        15   relocated to Hawaii for the duration of this contract.  

        16   That's part of track 2.  That's the Oahu services.

        17        Q.   Okay.  The next question has to do with the 

        18   benchmark on reading, which came in very late.

        19        A.   Yes.

        20        Q.   As far as that, when did it start, actually, a 

        21   couple years now?

        22        A.   Yes.  Like the recruitment, the discussion on 

        23   reading had been going on for a while.  It was -- the 

        24   plaintiffs had requested that we have a reading test that 

        25   would be a grade equivalency, and if the student or the child 



                            RALPH ROSENBERG COURT REPORTERS
                     OFC:  (808) 524-2090     FAX:  (808) 524-2596


                                                                        87



         1   was reading below grade level, then what interventions would 

         2   the department be able to provide to bring that child up to 

         3   grade level.  Included in that would be the monitoring and 

         4   the training of teachers to be able to provide intervention, 

         5   and that's where you see it moving into ISPED so that we have 

         6   to be able to record what the scores are and the progress of 

         7   the student.

         8        Q.   So you're tracking it, the teachers track it daily?

         9        A.   They are able to --

        10        Q.   How are they doing that?

        11        A.   They are able to track the progress -- every year 

        12   we put in the scores of the child to see if they are making 

        13   progress.  We are also -- it's part of the IEP, and in the 

        14   ISPED system, because it's a process driven, they would 

        15   record what these individuals are.  So every child would have 

        16   a set of scores under the evaluation and suggested 

        17   strategies.  If these strategies don't work, then some place 

        18   in the IEP would be the specifics of what kind of 

        19   interventions we need for this child and then a score of how 

        20   they are doing.

        21        Q.   I see.  I just want to round that up.  Parents have 

        22   been calling -- I got several calls.  Now, they are very 

        23   upset.  Their kids are seniors this year, they will graduate, 

        24   and they find out that the kid is reading at fifth or fourth 

        25   grade level.  So their complaint is that they are not reading 



                            RALPH ROSENBERG COURT REPORTERS
                     OFC:  (808) 524-2090     FAX:  (808) 524-2596


                                                                        88



         1   so satisfactorily that they can't even go to maybe community 

         2   college.  I just wanted to now how are we going to handle 

         3   something like that?

         4        A.   I don't --

         5        Q.   It's till age 20, right, is our commitment or 

         6   obligation?  I didn't know how to answer them.

         7        A.   Refer them to us and let's -- we'll work with the 

         8   parent, and just a little digression, but I would want to go 

         9   into the assessment of the child for the specifics and then 

        10   see how we could add the additional supports to help them, so 

        11   it may be one period of reading and it may be a very specific 

        12   reading so that they could be able to -- if not caught up, at 

        13   least be able to be at a competency level, but we can work 

        14   with that, so have them call their district office.

        15        Q.   And I wondered because of the youngsters who have 

        16   graduated, moved on, do we track and see how many go to 

        17   community college, et cetera?

        18        A.   No.  We only track -- we only have their -- what 

        19   they expect to do after they leave high school, but at this 

        20   time we're working on -- because of a resolution that came 

        21   out of the Senate last year, we're looking at how to track 

        22   them after they leave us to community schools, so that's 

        23   being done now. 

        24        Q.   I just was looking in terms of what we can do to 

        25   integrate, let's say, those youngsters who can and want to 



                            RALPH ROSENBERG COURT REPORTERS
                     OFC:  (808) 524-2090     FAX:  (808) 524-2596


                                                                        89



         1   get into some community college courses, et cetera.  So it 

         2   might be something that we need to look at --

         3        A.   That's good.

         4        Q.   -- with the large numbers of kids now that are 

         5   coming out of special ed.  Thank you very much, Ms. Hamamoto?

         6                  REPRESENTATIVE KAWAKAMI:  Thank you, Chair.

         7                  CO-CHAIR REPRESENTATIVE SAIKI:  Members, we've 

         8   been going for an hour, so we'd like to take a short 

         9   five-minute break to give the reporter a recess.  Thank you.  

        10                            (Recess taken.)

        11                  CO-CHAIR REPRESENTATIVE SAIKI:  We'd like to 

        12   reconvene our hearing.  We'll proceed with Senator Slom, 

        13   followed by Representative Leong. 

        14                  SENATOR SLOM:  Thank you, Co-Chair Saiki.  

        15                            EXAMINATION

        16   BY SENATOR SLOM:  

        17        Q.   Good morning, Ms. Hamamoto.

        18        A.   Good morning.

        19        Q.   You found it necessary and important to make an 

        20   opening statement, and in your opening statement you talked 

        21   about integrity, public trust, the need to audit, and 

        22   openness.  Was that statement made as a comparison with the 

        23   previous administration or some of your frustrations or what?

        24        A.   No, Senator Slom.  It was made because I've always 

        25   believed it and practiced it from the time I was a teacher 



                            RALPH ROSENBERG COURT REPORTERS
                     OFC:  (808) 524-2090     FAX:  (808) 524-2596


                                                                        90



         1   through my administration as a principal.  I've also shared 

         2   this with my faculty and I've also shared it with the people 

         3   in the department, the district superintendents, and any 

         4   principal group that I work with, and it's an understanding 

         5   of where I am and what I believe in and that openness and 

         6   trust that I would like to establish with those that I work 

         7   with.

         8        Q.   Well, Mr. Koyama, in his internal audit, had 

         9   brought up, his number one finding, a problem with 

        10   communication, and that would signify openness also.  I'm 

        11   just wondering whether you had any problems in your position 

        12   as deputy with the previous administration?

        13        A.   No, I -- and the reason I'm having a difficult time 

        14   answering your question is because you put it in light of 

        15   Mr. Koyama, and when Mr. Koyama talked about -- and we 

        16   discussed this about communication.  I don't believe it's the 

        17   unwillingness to share information.  I believe the 

        18   communication that we're talking about is that we're all 

        19   working in our individual offices, that we never communicate 

        20   across the agency.  So we have vertical communication, but 

        21   not often do we truly create the opportunities to talk across 

        22   the agency.  So a lot of times I tell you stuff but you -- I 

        23   don't know if you know what I meant, and so that's one.  In 

        24   relationship to the previous administration, I believe the 

        25   communication that was necessary for both of us to do the 



                            RALPH ROSENBERG COURT REPORTERS
                     OFC:  (808) 524-2090     FAX:  (808) 524-2596


                                                                        91



         1   work that we did, that the superintendent chose to share with 

         2   me and I in turn with him, was as best as we could do under 

         3   the circumstances of being supervisor and employee.

         4        Q.   And about that internal audit, you indicated 

         5   earlier to Mr. Kawashima that that was your call to ask for 

         6   that?

         7        A.   Yes.

         8        Q.   And that you did discuss it with the former 

         9   superintendent?

        10        A.   Yes.

        11        Q.   Did he have any comments about that, since he had 

        12   not asked for an audit prior to that?

        13        A.   No, and I had -- because I looked at those 

        14   printouts every two weeks and I was tracking the money, it 

        15   bothered me that it wasn't balancing out, and I brought it to 

        16   his attention and I brought him not just the problem but a 

        17   resolution that I would like to work on and he agreed that, 

        18   yes, go ahead.

        19        Q.   Yeah, you had mentioned that previously, that you 

        20   had looked at the numbers and the disbursements and all and 

        21   it bothered you.  Had the superintendent at any time told you 

        22   or anyone else that he was bothered by the same things?

        23        A.   He may not have informed me of his -- no, not in 

        24   that sense of the word, but he was aware that I had these 

        25   concerns because I was bringing some of these up to him.



                            RALPH ROSENBERG COURT REPORTERS
                     OFC:  (808) 524-2090     FAX:  (808) 524-2596


                                                                        92



         1        Q.   I'm talking about if he had any of the same 

         2   concerns.  He was privy to the same information and probably 

         3   more information.

         4        A.   I would not be able to give you an answer on that.

         5        Q.   You mentioned the HSTA, and initially you referred 

         6   to them as partners, but then later on in questioning you 

         7   mentioned that they were opposed to the Columbus contract, 

         8   and in a specific question as to what they are doing to help 

         9   either the teachers or the DOE or the situation right now you 

        10   were not aware of what they were doing.  The HSTA has been 

        11   very critical of the legislature, and so I'm kind of 

        12   wondering, was there any kind of agreement made with the HSTA 

        13   at the onset of the Columbus contract, any kind of promises 

        14   or any kind of ideas that were advanced to them to allay 

        15   their objections?

        16        A.   Other than that we would -- from my part and the 

        17   area that I was involved in and responsible for when we 

        18   discussed with Columbus the agreement and the understanding 

        19   is that we would -- we would limit the Columbus teachers to 

        20   the hard-to-fill and neighbor island areas.

        21        Q.   But there were no other agreements or promises made 

        22   to HSTA?

        23        A.   Not from my -- not by me.

        24        Q.   Did HSTA make any requests or demands?

        25        A.   Other than that we don't hire Columbus teachers, 



                            RALPH ROSENBERG COURT REPORTERS
                     OFC:  (808) 524-2090     FAX:  (808) 524-2596


                                                                        93



         1   I'm not aware of any other.

         2        Q.   Yesterday I asked Ms. Johnston if the DOE was 

         3   planning on coming into the 2002 legislative session and 

         4   asking for emergency appropriation.  She punted to you.

         5        A.   That was a good punt.  Before I -- I'm unable to 

         6   give you a yes or a no, and the reason why is because I 

         7   believe that at the time we -- should we make that decision, 

         8   that I would like to know that we have truly expended our 

         9   resources in the manner in which they were designed to do, 

        10   and I wanted to make sure that we do have an emergency that 

        11   we're looking at before we ask for it and stay within the 

        12   process by which emergency appropriations are requested.

        13        Q.   Okay.  And finally, my time is up, you had 

        14   discussed various players, the consultants and the court 

        15   monitor and so forth, the personality, were you aware of 

        16   discussions or rumors or possibilities before the eminent -- 

        17   I guess the absence of the superintendent or his quitting his 

        18   position that, in fact, he was under consideration for one of 

        19   these federal Felix positions?

        20        A.   There was that discussion with the Department of 

        21   Health as well.  If the department -- the plaintiffs were 

        22   looking at if we did not make compliance, then it had always 

        23   been talked about what would be the next level of 

        24   consequence, and I believe the next level of consequence 

        25   would then be a receiver, what would this receiver look like, 



                            RALPH ROSENBERG COURT REPORTERS
                     OFC:  (808) 524-2090     FAX:  (808) 524-2596


                                                                        94



         1   speculation comes about, names were tossed about, one would 

         2   have been would it be the superintendent, and we dialogued 

         3   the pluses and the minuses if the superintendent -- any 

         4   superintendent of education came -- became also a receiver.  

         5   So in that context, I don't know if it was specific to the 

         6   person so much as it was the dialogue was specific to the 

         7   superintendency.

         8        Q.   Thank you, Ms. Hamamoto.

         9                  SENATOR SLOM:  Thank you, Co-Chair.

        10                  CO-CHAIR REPRESENTATIVE SAIKI:  Thank you.  

        11   Representative Leong, followed by Senator Sakamoto.

        12                  REPRESENTATIVE LEONG:  Thank you, Chair Saiki.  

        13                            EXAMINATION

        14   BY REPRESENTATIVE LEONG:  

        15        Q.   Good morning again.  In this morning's discussion 

        16   you mentioned that just about December, January of 2000 we 

        17   weren't meeting the benchmarks and that it seemed like the 

        18   reports were not adequate to the courts.  I wonder if you 

        19   could elaborate on that?

        20        A.   The court felt that we were not -- we were not 

        21   producing the data in a timely manner on a monthly basis 

        22   which indicated school by school positions that were not 

        23   filled and positions that were filled by special education 

        24   teachers or substitutes.  What we gave them was a composite 

        25   number, a numerical value, and they wanted more definitive, 



                            RALPH ROSENBERG COURT REPORTERS
                     OFC:  (808) 524-2090     FAX:  (808) 524-2596


                                                                        95



         1   or as the monitor says, fine grain detailing, so what we had 

         2   had to develop was a fine grain detailing of the data which 

         3   I've submitted to the investigative -- to the committee.

         4        Q.   I see.

         5        A.   So that was the issue.  They could never -- the 

         6   court could never look at what we had and say with -- what's 

         7   the right word -- with the assurance that what we gave them 

         8   was in fact what was happening.

         9        Q.   Because in the same breath you almost said that you 

        10   weren't -- you didn't agree with the court order, but then 

        11   you had to comply by it; is that correct?

        12        A.   With the national recruitment firm?  Yes.

        13        Q.   So there wasn't anyone you could turn to.  It was 

        14   something you and your organization, DOE, had to do; is that 

        15   correct?

        16        A.   Yes.

        17        Q.   And my next question had to do with Mr. Yoshie came 

        18   in some time ago and I'm not sure that you were here, but he 

        19   did state that when Na Laukoa came up for contract, he went 

        20   into some detail of how he felt that it wasn't -- they 

        21   weren't adequate to handle this, and then when the contract 

        22   was agreed to he wanted to go to the attorney general and he 

        23   went to you and asked you if he should go to the attorney 

        24   general and you suggested not, that he not go, and a few days 

        25   after that he lost his job.  Could you discuss that, please?



                            RALPH ROSENBERG COURT REPORTERS
                     OFC:  (808) 524-2090     FAX:  (808) 524-2596


                                                                        96



         1        A.   Representative Leong, I was here for that 

         2   testimony.

         3        Q.   Yes. 

         4        A.   I believe it was regarding the Columbus contract, 

         5   not the Na Laukoa -- not the PREL contract.

         6        Q.   That kind of led to it?

         7        A.   No, because I don't remember Mr. Yoshie being 

         8   involved in the -- to my knowledge, the PREL contract.  On 

         9   the Columbus contract, he brought up to me his concerns 

        10   regarding the legality of the superintendent's super powers.

        11        Q.   Yes.

        12        A.   And I shared with him that I am not a legal person, 

        13   so I don't know whether it's constitutional, it's legal, it's 

        14   not.  I don't know, because we've never done this before and 

        15   his questions were legitimate.  There were concerns, and I 

        16   told him that I would share it with the attorney general and 

        17   I told him that I would get back to him.  So if he felt 

        18   uncomfortable doing the implementation or the administration 

        19   of the contract because he had these problems, that it would 

        20   be best if he stopped until we got some answers that he felt 

        21   comfortable with, but I would not be able to give him the 

        22   interpretation of the super powers.  That I punt to the 

        23   attorney general.  So I asked him to wait until I could get 

        24   him better information.

        25        Q.   I guess at that point the question that surfaced 



                            RALPH ROSENBERG COURT REPORTERS
                     OFC:  (808) 524-2090     FAX:  (808) 524-2596


                                                                        97



         1   was why couldn't he have gone and, you know, sought an 

         2   answer?

         3        A.   He could and he had -- we -- many -- and in his 

         4   position as director of personnel, he has in the past picked 

         5   up the phone and called the attorney general, both the labor 

         6   and the administration sections, so for the level of job that 

         7   he sat at or the level of leadership, it was perfectly 

         8   acceptable, it was a common practice that he could pick up 

         9   the phone and call the attorney general on his own.

        10        Q.   Thank you.

        11                  REPRESENTATIVE LEONG:  Thank you.

        12                  CO-CHAIR REPRESENTATIVE SAIKI:  Senator 

        13   Sakamoto, followed by Representative Marumoto.

        14                  SENATOR SAKAMOTO:  Thank you, Chair.

        15                            EXAMINATION

        16   BY SENATOR SAKAMOTO:  

        17        Q.   Good morning.

        18        A.   Good morning.

        19        Q.   As always in our hearings, please, concise answers.

        20        A.   Yes.

        21        Q.   Even if sometimes there may be more to explain.  

        22   First, just to clear up the audit.  Based on the 38 or so 

        23   recommendations, is the -- has the department already or will 

        24   the department soon address each of those issues that 

        25   Mr. Koyama has brought up and bring them to some resolution?



                            RALPH ROSENBERG COURT REPORTERS
                     OFC:  (808) 524-2090     FAX:  (808) 524-2596


                                                                        98



         1        A.   Yes, many of them have been addressed, the 

         2   corrective action have been taken under the last fiscal year 

         3   umbrella.  There are other issues that are process involved 

         4   that require more.  It has to go into the structure and how 

         5   we do things, and those are being worked on currently.

         6        Q.   Related to that, many of the recommendations seem 

         7   to be related to budget on one hand, expenditures on the 

         8   other hand, and one of those reasons is why you wanted to do 

         9   the audit.  Is there something organizationally that you may 

        10   propose so that the left hand and the right hand can work 

        11   together better?

        12        A.   Yes.  And the proposal that we finally choose to 

        13   move toward on will take into account how it will affect or 

        14   if it will affect what goes on at school level.  I don't want 

        15   the schools to have to make changes to address the state.  I 

        16   would prefer that the state wrap itself around the schools 

        17   and provide the services for the schools.

        18        Q.   So you have a preliminary plan that you're working 

        19   on?

        20        A.   Yes, we've been talking with the assistant 

        21   superintendent.

        22        Q.   I'm glad you provided the Columbus numbers, you 

        23   know, and explained that maybe 4,000 people expressed 

        24   interest and according to your listing there were 354 

        25   applicants, or about 9 percent of the 4,000 actually applied, 



                            RALPH ROSENBERG COURT REPORTERS
                     OFC:  (808) 524-2090     FAX:  (808) 524-2596


                                                                        99



         1   and of those 9 percent weren't hired, 20 percent declined 

         2   jobs, and the rest, say about 60 percent, ultimately were 

         3   hired.  How does that compare to the department's own 

         4   efforts?  Are the percentage about the same?

         5        A.   Senator, I did not do that comparison.

         6        Q.   Okay.  As a former personnel person, maybe that's a 

         7   good comparison to do, and we can determine where we're weak 

         8   and where we can strengthen.  Related to the 63 million on 

         9   your current proposal, assuming it goes per what's 

        10   anticipated, and I know it's a hypothetical question, if the 

        11   department learning from Columbus in terms of welcome wagon, 

        12   in terms of hand-holding, in terms of many, many different 

        13   points, travel, travel allowance, in spite of the union's 

        14   objections, if the department were to with their own forces 

        15   use resources less than 63 million, could we accomplish that 

        16   parallel with our own effort and save money compared to the 

        17   63 million?

        18        A.   That is the goal.  That's what we intend to do.  So 

        19   I am going to view that our experiences with Columbus, while 

        20   it's to meet an immediate need, it's also learning on what we 

        21   can do to better our recruitment and retention efforts.

        22        Q.   So we could offer incentives that maybe we weren't 

        23   offering before and such.  That's good.  I guess on the issue 

        24   of meeting the benchmarks, and you and others have testified 

        25   that the department many times felt intimidated, under the 



                            RALPH ROSENBERG COURT REPORTERS
                     OFC:  (808) 524-2090     FAX:  (808) 524-2596


                                                                       100



         1   gun, pressured into, did not agree with but complied no 

         2   matter what.  In hearing the Department of Health, it seemed 

         3   it was a little different.  They didn't seem to be 

         4   intimidated.  They seemed to say, well, they adopted our 

         5   benchmark, it was our plan and somehow got into the 

         6   benchmarks.  So many times do the department people feel they 

         7   are in a war, they are in a fox hole or in a cave and doing 

         8   the best they can under the circumstances?  Not to relate 

         9   them to the Afghanistan situation, but certainly lack of 

        10   resources and fighting to do the best they can?  Why is it 

        11   that the Department of Health seemed to have things, well, 

        12   they accepted our benchmarks, they accepted our targets, and 

        13   we're meeting most of them, but the department was sort of on 

        14   the run in the other direction?

        15        A.   Well, perhaps it goes back to the basics of the 

        16   mission of each department.  I believe the Department of 

        17   Health provides a related service and right now it's only to 

        18   the Felix class children, and for the Department of Education 

        19   our -- we have -- we reject no one in education.  We take all 

        20   the children, and our obligation is to educate all.  In that 

        21   sense, I believe that our resources and how we use them are 

        22   quite different.  We do not pick and choose those areas in 

        23   which we will choose to fund, but we fund all.  So it goes 

        24   back to -- for me, it goes back to the basic mission of the 

        25   Department of Health and the Department of Education.



                            RALPH ROSENBERG COURT REPORTERS
                     OFC:  (808) 524-2090     FAX:  (808) 524-2596


                                                                       101



         1        Q.   So balancing resources?

         2        A.   That's -- yes.

         3        Q.   As opposed to singular purpose?

         4        A.   183,000 kids as opposed to 8,000 or 11,000 is quite 

         5   a difference.

         6                  SENATOR SAKAMOTO:  Thank you. 

         7                  CO-CHAIR REPRESENTATIVE SAIKI:  Thank you.  

         8   Representative Marumoto, followed by Co-Chair Hanabusa.

         9                            EXAMINATION

        10   BY REPRESENTATIVE MARUMOTO: 

        11        Q.   Hi, Superintendent Hamamoto.  We welcome you --

        12        A.   Thank you.

        13        Q.   -- you know, to the hot seat.  You have a real 

        14   tough job, and we all wish you well.  Education is our number 

        15   one issue, and we want it seen right, done right, and 

        16   especially for special ed kids and regular ed, but what we 

        17   have seen is really disturbing.  We've seen a financial 

        18   hemorrhage, and it wouldn't be so bad if it was just 

        19   financial, but, you know, if we get quality for the quantity, 

        20   you know, maybe it wouldn't be so bad.  There's several 

        21   incidents.  There just doesn't seem to be really great budget 

        22   controls and loosely drafted contracts, people who are not 

        23   qualified, lack of reporting, no really good evaluation of 

        24   outcomes, at least one questionable research project, so it's 

        25   been very disappointing from here. 



                            RALPH ROSENBERG COURT REPORTERS
                     OFC:  (808) 524-2090     FAX:  (808) 524-2596


                                                                       102



         1             I guess the Columbus one really stands out because 

         2   it's a hundred -- originally $100 million.  I think in the 

         3   initial talking stage it was about over $120 million.  But my 

         4   understanding is that it was ratcheted down to $40 million 

         5   after the original amount.

         6        A.   Yes.

         7        Q.   And also at the beginning you had said that there 

         8   is a provision that requires that if -- money must be 

         9   available before you could pay the contract, so in other 

        10   words, you're saying the legislature must appropriate the 

        11   money before you can spend any, but, you know, I would 

        12   contend that those words are almost meaningless because you 

        13   have a lump sum budget.  You know, we give you the money, 

        14   right?

        15        A.   Yes.

        16        Q.   And then so you have the money, therefore, you have 

        17   to pay it out?

        18        A.   In the allocation process within the department, 

        19   and yes, we do have a lump sum, so what you -- what the 

        20   legislature does is it gives us the budget and it's approved 

        21   upstairs.

        22        Q.   So if the contract provisions are met, you have to 

        23   pay the provider?

        24        A.   In all likelihood, yes.

        25        Q.   Probably yes?



                            RALPH ROSENBERG COURT REPORTERS
                     OFC:  (808) 524-2090     FAX:  (808) 524-2596


                                                                       103



         1        A.   Probably yes.

         2        Q.   And then recently you renegotiated an extension of 

         3   this contract to 2004 and you're -- the total contract is now 

         4   $63 million?

         5        A.   It is not an extension.  It is the -- part of the 

         6   original contract that was reduced to 63.

         7        Q.   I'm sorry.  You went from 100 to 40 and back up to 

         8   63; is that correct?

         9        A.   Right.

        10        Q.   So it is more money, and I'm wondering whether any 

        11   of the terms and conditions of the contract changed?

        12        A.   In respect to?

        13        Q.   The contract for 63 million.

        14        A.   Yes, what changed is the number of teachers we have 

        15   hired, the number of teachers we expect to hire at the end of 

        16   this contract, have on board.

        17        Q.   Okay.  Did anything else change, any other terms?  

        18   Is there any percentage cap on the profits that Columbus 

        19   could make per teacher?  For instance, Representative Oshiro 

        20   pointed out that if you pay a teacher $42,000 salary, then 

        21   Columbus is allowed to keep the rest of the money.  You know, 

        22   it could be a huge percentage profit.

        23        A.   Well, I believe that included in that number that 

        24   Representative Oshiro asked me, besides the salaries, 

        25   Columbus pays for their medical, they pay for their workers' 



                            RALPH ROSENBERG COURT REPORTERS
                     OFC:  (808) 524-2090     FAX:  (808) 524-2596


                                                                       104



         1   comp, they pay their FICA, they pay all the benefits that we 

         2   don't pay or we would have to pay if they were employees.  So 

         3   if I take a look at what's contained in that salary package, 

         4   it's just not the salary, everything that goes along, the 

         5   fringe benefit as well, and I don't know if they cap.  I 

         6   don't know if Columbus caps and I don't know what their 

         7   profit margin is as well.

         8        Q.   But you did not change any requirements for the 

         9   profit that Columbus could make, whether they pay a teacher 

        10   40,000 or 60,000, you know, plus benefits?

        11        A.   I have no idea on their profit.

        12        Q.   Did you negotiate the contract or this recent 

        13   renegotiation?

        14        A.   Yes.

        15        Q.   And who assisted you in this?

        16        A.   Russell Suzuki helped me with the final language, 

        17   our attorney general, and our staff people based on what has 

        18   been coming in. 

        19        Q.   Is there any penalty if a teacher works less than 

        20   three years, penalty for the teacher or for Columbus?

        21        A.   I don't know if there's a penalty for the teacher 

        22   because that's a Columbus contract employee.  For us, what it 

        23   means is that if the teacher leaves before that, we do not 

        24   pay whatever the salary would have been, so there's no 

        25   charge.  We are charged on a monthly basis the teacher's 



                            RALPH ROSENBERG COURT REPORTERS
                     OFC:  (808) 524-2090     FAX:  (808) 524-2596


                                                                       105



         1   salary.

         2        Q.   Well, but yet, you know, sometimes if you expect 

         3   performance of three years and it falls short, sometimes you 

         4   could assess a penalty of some type.  I'm just wondering if 

         5   anything of that type was negotiated in the extension?  I 

         6   mean, if you're giving them more money, I think you could 

         7   request more -- request changes and different terms and 

         8   conditions.

         9        A.   Yes, we could and we have been.

        10        Q.   Is there a requirement that Columbus perform on, 

        11   hire so many teachers per year?

        12        A.   No.

        13        Q.   Nor any penalty if they do not, of course.  I would 

        14   hope that there would be some changes made in the future, and 

        15   you're getting more professional help in negotiating these 

        16   contracts.  As far as I can see, the contract negotiations 

        17   are not as tight as they could be, and so in the future I 

        18   hope that we will see a shift in attitude and practice.

        19        A.   Yes, you will.  In addition, I don't want to do 

        20   another Columbus contract.  I expect that when it ends in 

        21   August of '04, it will be the end of our experience with the 

        22   Columbus contract of this nature and that we will be able to 

        23   hire not only our own but we will have enough resources to 

        24   allow a steady stream or a dedicated stream of teachers from 

        25   the state of Hawaii internally as well as externally.



                            RALPH ROSENBERG COURT REPORTERS
                     OFC:  (808) 524-2090     FAX:  (808) 524-2596


                                                                       106



         1        Q.   Thank you.

         2        A.   Thank you.

         3                  CO-CHAIR REPRESENTATIVE SAIKI:  Thank you.  

         4   Co-Chair Hanabusa.

         5                  CO-CHAIR SENATOR HANABUSA:  Thank you.

         6                            EXAMINATION

         7   BY CO-CHAIR SENATOR HANABUSA:  

         8        Q.   Thank you, Ms. Hamamoto.  Let me ask you the buzz 

         9   word of this session.  Do you have the super powers now?

        10        A.   I believe the super powers are conferred to the 

        11   superintendent's position, yes.

        12        Q.   Have you had any opportunity to exercise it since 

        13   you've assumed this position?

        14        A.   No.

        15        Q.   I've got a series of questions, and I know I'm 

        16   going to use up my five minutes very quickly, so let me begin 

        17   first with something that's left over from yesterday.  I 

        18   asked Ms. Johnston who was here about the cell phone policy 

        19   of the Department of Education, and she said to ask you 

        20   because she doesn't have one.  So let me begin by first 

        21   asking you the fundamental question of whether you have a 

        22   cellular phone that's paid for by the Department of 

        23   Education, state of Hawaii?

        24        A.   Yes, I do.

        25        Q.   And did you have this as a deputy or before 



                            RALPH ROSENBERG COURT REPORTERS
                     OFC:  (808) 524-2090     FAX:  (808) 524-2596


                                                                       107



         1   becoming a superintendent?

         2        A.   I received this cell phone when I became deputy as 

         3   part of my 24/7 job responsibilities.

         4        Q.   Now, what is your understanding, if any, about the 

         5   use of the cellular phone which the state is paying for for 

         6   personal calls?

         7        A.   My understanding as a state employee is that 

         8   whenever I'm issued any equipment that is in the line of my 

         9   job responsibilities, it is to be used for that job, and 

        10   should I use it for personal, then I would reimburse the 

        11   state for that personal use.

        12        Q.   Is that something that you have come to understand 

        13   or was it a policy that's written within the Department of 

        14   Education?

        15        A.   I don't know if it's written in the department's 

        16   policy, but I believe it's a policy for the state of Hawaii 

        17   when we get employed as a state employee.

        18        Q.   Do you know if there's anyone who reviewed your 

        19   cell phone bills or is it an honor system?

        20        A.   I don't know if -- I don't know if anyone reviewed 

        21   my bills.  I don't -- I don't know. 

        22        Q.   Do you know -- do you recall in the time -- so when 

        23   you became deputy superintendent it was, when, about 1998 

        24   sometime?

        25        A.   '99.



                            RALPH ROSENBERG COURT REPORTERS
                     OFC:  (808) 524-2090     FAX:  (808) 524-2596


                                                                       108



         1        Q.   '99?

         2        A.   Uh-huh.

         3        Q.   So at that time did you -- have you paid back for 

         4   anything that you remember?

         5        A.   No.

         6        Q.   Did you have $100 a month plan, do you know?

         7        A.   No, I don't know what plan I'm on.

         8        Q.   You don't know.  Have you ever heard of any 

         9   discussions regarding the cell phone bills of the 

        10   superintendent -- then Superintendent LeMahieu?

        11        A.   No.

        12        Q.   Let me ask you this, then.  The superintendent's 

        13   cell phone bills were produced to us, and it was produced by 

        14   Ms. Johnston who said she got it from you or your office.  Do 

        15   you know anything about that?

        16        A.   If it was from our office, then it probably -- it 

        17   must -- it came from Mr. Stafford Nagatani, who is our 

        18   executive assistant. 

        19        Q.   So if Mr. Stafford Nagatani confirmed someone's 

        20   cell phone number for us, then he probably would be the one 

        21   who would know?

        22        A.   Yes.

        23        Q.   And would he also be the one who would review these 

        24   bills for the department?

        25        A.   The payment, yes.



                            RALPH ROSENBERG COURT REPORTERS
                     OFC:  (808) 524-2090     FAX:  (808) 524-2596


                                                                       109



         1        Q.   He would.  Okay.  Let me ask you this, and the 

         2   reason why I'm so curious about it is because it is a large 

         3   number of minutes.  The superintendent's bills, he had a $100 

         4   a month plan, and I've asked my colleagues and that's a 

         5   pretty expensive plan.  Most of them are on 39.95 a month, 

         6   and they all represent to me that they don't use up all the 

         7   minutes, but the superintendent had $100 a month, and 

         8   beginning somehow in May, which reflects April, he had excess 

         9   air time charges of about $329.  Then in June, $100 a month, 

        10   $490.  Then in July for June he had $100 with $386 extra air 

        11   time.  Then in August for July he had a $100 a month bill -- 

        12   I mean plan with $500 extra in air time.  Then in September 

        13   the bill goes to $200 a month base, which increases the 

        14   number of minutes, and the DOE still paid an additional $701, 

        15   and in October the increase goes to the 200 and they still 

        16   pay 338.  November, 200, with $253 extra, and December they 

        17   up him to $300 a month -- a month, now, that's your base cell 

        18   phone rate, and after that it seems to slow down in terms of 

        19   excess amounts.  These amounts seem pretty substantial for 

        20   cell phone bills given the base that we're beginning with, 

        21   and you say that you don't know anything about it?

        22        A.   No.

        23        Q.   As superintendent, now that we've brought it to 

        24   your attention, is this something that you will look into and 

        25   do some kind of follow-up on?



                            RALPH ROSENBERG COURT REPORTERS
                     OFC:  (808) 524-2090     FAX:  (808) 524-2596


                                                                       110



         1        A.   Yes.

         2        Q.   Let me also give you some other information to make 

         3   it easier for you, since we've broken this down.  There is a 

         4   cell phone number which Mr. Nagatani has confirmed to the 

         5   auditor's office that belongs to Ms. Stocksdale that totaled 

         6   for the period of time August 11, 2000 to October 4, 2001 a 

         7   total of 6,554 minutes to that one number for a total of 

         8   2,035 calls.  What's interesting to me, of course, is August 

         9   11, 2000, which is for the month of July, is 1,023 minutes 

        10   and September 11, 2000 is 1,148 minutes.  In addition, there 

        11   are calls to her residence at 4,007 total minutes for that 

        12   period of time for a total of 122 calls and to Na Laukoa 

        13   itself for 1,140 minutes for 140 calls. 

        14             Let me ask you, as you were primarily responsible 

        15   for Felix under the superintendent at that time, do you in 

        16   your experience remember placing as many calls to one vendor 

        17   or one provider?

        18        A.   No.

        19        Q.   Does this seem like a lot of calls and a lot of 

        20   minutes to one provider?  I can also tell you that for some 

        21   months it's like half the number of calls or half the number 

        22   of minutes billed.  I mean, is that something that if you 

        23   were looking at it as superintendent and you came across 

        24   someone's cell phone bill like that that it would cause you 

        25   to wonder about it?



                            RALPH ROSENBERG COURT REPORTERS
                     OFC:  (808) 524-2090     FAX:  (808) 524-2596


                                                                       111



         1        A.   Wonder, ask questions, and get an explanation of 

         2   why this was happening and what was the business about.

         3        Q.   And if these calls are in fact personal in nature, 

         4   you would ask that the monies be reimbursed, would you not?

         5        A.   Yes.

         6        Q.   Do you believe that simply because the 

         7   superintendent has left that we are not -- we the state are 

         8   not entitled to ask for any reimbursement for any of these 

         9   sums?

        10        A.   No, I -- no.

        11        Q.   So my time is up, and I will be asking you other 

        12   questions, but I will leave this in your hands, and if you 

        13   would report back to the committee and let us know what the 

        14   department or the board, whoever makes that decision, intends 

        15   to do about this, and I don't even know -- and you might want 

        16   to check whether these calls, because they relate to a Felix 

        17   provider, whether somehow they are charged to the Felix 

        18   account for any reason.  You know, I don't know how creative 

        19   your accounting staff can be, but if that's the case, we'd 

        20   also like to know from what fund this is being paid off of, 

        21   because we do have the excess, and just out of curiosity, can 

        22   you tell us what your basic plan is when you give us this 

        23   information?  We're kind of interested to know whether you're 

        24   going to have a $300 a month flat rate.  That's almost 

        25   unlimited, you know.



                            RALPH ROSENBERG COURT REPORTERS
                     OFC:  (808) 524-2090     FAX:  (808) 524-2596


                                                                       112



         1        A.   I think I'd like to stay to the 39.95. 

         2        Q.   You can join the ranks.  Thank you.  

         3                  CO-CHAIR SENATOR HANABUSA:  I'll pass now to 

         4   someone else, and I'll have follow-up questions.

         5                  CO-CHAIR REPRESENTATIVE SAIKI:  Thank you, 

         6   Co-Chair Hanabusa.  I have a $30 plan, but I won't ask any 

         7   questions about that.  

         8                            EXAMINATION

         9   BY CO-CHAIR REPRESENTATIVE SAIKI: 

        10        Q.   I just have a few macro questions, Superintendent.  

        11   First, does the department -- your department plan to seek 

        12   emergency funding requests next year?

        13        A.   I believe I answered Senator Slom that I'm not able 

        14   to give an answer at this time until I take a look at all the 

        15   resources and ensure that we've used what we have, and should 

        16   that happen, then at that time -- but at this point in time I 

        17   would not be able to say a yes or no.

        18        Q.   I'm sorry, I didn't hear that response.  I had a 

        19   couple of questions on the monitor's quarterly report that 

        20   was just issued for the months August 2001 to November 2001.  

        21   Did you have a chance to review that?

        22        A.   The August? 

        23        Q.   It was August 2001 to November 2001.

        24        A.   This is --

        25        Q.   The monitor's quarterly status report.



                            RALPH ROSENBERG COURT REPORTERS
                     OFC:  (808) 524-2090     FAX:  (808) 524-2596


                                                                       113



         1        A.   Yes, I've read all of them.

         2        Q.   This is the most recent one that was just issued a 

         3   few days ago, but there are a couple of statements in here 

         4   that I wanted to get clarification on.  When was -- on page 

         5   11 of the report where the monitor stated that he has 

         6   received examples of persons resisting some aspect of 

         7   implementation because of the erroneous and distorted 

         8   information that has been presented to the Felix 

         9   investigative committee.  Do you kind of recall reading that 

        10   statement?

        11        A.   Yes, I did.

        12        Q.   Do you know -- have you received examples of 

        13   individuals who have resisted implementation efforts because 

        14   of the work of this investigative committee?

        15        A.   Not to my knowledge.

        16        Q.   Are you aware of what kind of calls the monitor may 

        17   have received?

        18        A.   No, I'm not.  There were no specifics and very -- 

        19   and at times the information that you see before you may have 

        20   specific details that are not shared with the department, so 

        21   I don't know if it's a case -- individual case, that is, you 

        22   know, just an individual -- I don't know if it's case 

        23   specific or if it's the case that truly represents the 

        24   system.  Until I go back and ask specifically what it is, 

        25   then I can determine what action I need to take.



                            RALPH ROSENBERG COURT REPORTERS
                     OFC:  (808) 524-2090     FAX:  (808) 524-2596


                                                                       114



         1        Q.   But prior to issuing this report, the monitor never 

         2   relayed these kinds of examples to you?

         3        A.   Not -- not specific, or if he had relayed and he 

         4   has relayed, then we've discussed perhaps the rationale of 

         5   why and what -- and what we can do.

         6        Q.   I guess for me that kind of relates to kind of like 

         7   the morale of the department personnel, and that's a question 

         8   that Senator Sakamoto had asked earlier, but I wanted to ask 

         9   a question about morale, because that was also mentioned in 

        10   the quarterly report, where the monitor had stated that at 

        11   this point that the department and the state should be 

        12   working together to develop more workable solutions for 

        13   problem solving and ongoing refinement of the implementation 

        14   plans and that this should be accomplished without the 

        15   prodding or intervention of the plaintiffs' attorneys or the 

        16   monitor.  Do you kind of recall that statement?

        17        A.   Yes.

        18        Q.   You know, to that extent, do you believe that the 

        19   prodding -- that the plaintiffs' attorneys or the monitor 

        20   have prodded or intervened unnecessarily in the past?

        21        A.   You know, Representative Saiki, you asked me -- you 

        22   began by saying that you'd do it on a macro level, and I need 

        23   to take it in perspective that the individual person in the 

        24   classroom may feel that this is an intrusion on what they 

        25   have to do because we are now doing things differently from 



                            RALPH ROSENBERG COURT REPORTERS
                     OFC:  (808) 524-2090     FAX:  (808) 524-2596


                                                                       115



         1   the way we've always done it, and then where I sit at this -- 

         2   in this particular chair I need to think about what is going 

         3   to be not only something that the teacher can do but what is 

         4   it that we need to do for the system as we move forward, and 

         5   then it becomes a tipping or how do we put everything in 

         6   perspective. 

         7             For the system, the prodding that we do, I can look 

         8   at it two ways, I can look at it as it's an interference and 

         9   become deadlocked and then I get into a head-butting battle 

        10   with them and I don't know if anyone wins so much as I think 

        11   maybe we all lose, or I can take a look at what they have and 

        12   see what is doable and then work within the system to make 

        13   these things so that we can accomplish something that's good.  

        14   I don't know if butting heads would get us anywhere, except, 

        15   you know, I believe we're going to be spending resources 

        16   unnecessarily fighting it and then I've got a federal court 

        17   in the end that's going to say do it, so how do I do it, and 

        18   I believe that many of the complaints and the concerns that 

        19   are brought up to the plaintiffs are those people who are not 

        20   satisfied who are -- it's just not working out, but I want to 

        21   look at it in a broader perspective than on that individual.

        22        Q.   Let me kind of rephrase my question a little bit.  

        23   Have you received information or reports from people within 

        24   the department, principals, teachers, staff members, who 

        25   believe that the prodding or the intervention of the 



                            RALPH ROSENBERG COURT REPORTERS
                     OFC:  (808) 524-2090     FAX:  (808) 524-2596


                                                                       116



         1   plaintiffs' attorneys or the court monitor have affected 

         2   morale to the point where it has actually impeded 

         3   implementation of the consent decree terms?

         4        A.   Yes, I have.  However, I believe that as we pass 

         5   our service testing and it's coming into compliance and as 

         6   the working conditions that Senator Buen asked what are we 

         7   doing about get better, that these opinions, perhaps, and 

         8   these experiences will start to -- will start to take on a 

         9   different light, but yes, I have received them and we have 

        10   addressed them as they have come up.

        11        Q.   Thank you.  My time is up.

        12                  CO-CHAIR REPRESENTATIVE SAIKI:   We'll take 

        13   follow-up questions at this point.  First, from Special 

        14   Counsel.

        15                  SPECIAL COUNSEL KAWASHIMA:  Yes, thank you, 

        16   Chair Saiki. 

        17                            EXAMINATION

        18   BY SPECIAL COUNSEL KAWASHIMA:  

        19        Q.   A few areas I have, Ms. Hamamoto.  I'm looking at a 

        20   document that was provided to us, I believe, through your 

        21   office, through the department, that's called -- it's 

        22   entitled improvement of the individual education program/  

        23   coordinated services plan/individual modification plan 

        24   process.  Do you know -- do you recall this document?

        25        A.   No, sir.



                            RALPH ROSENBERG COURT REPORTERS
                     OFC:  (808) 524-2090     FAX:  (808) 524-2596


                                                                       117



         1        Q.   And under the background portion of it, it explains 

         2   that the plan to retain experts and I guess have sessions to 

         3   improve upon the IEP process, IEP, IMP, ITP processes, do you 

         4   recall that?  Let me ask you this, in the interest of time, 

         5   this process I think was implemented such that there was a 

         6   proposed budget and there was also plans as to what to do 

         7   during the fall of 2000 after which there would be more 

         8   decisions made as to whether to continue that process.  And I 

         9   will tell you that under the proposed budget, I'm looking at 

        10   some items and there was an item that was estimated at 

        11   $85,000 for the employment of a state level IEP expert.  That 

        12   was lined out.  Then they have the mainland IEP expert team 

        13   headed by Dr. Judy Schrag, and a number of people in that 

        14   group.  Now, was this plan ever implemented?

        15        A.   Now I remember.  I didn't remember the title 

        16   because it was quite drawn out, but I do remember parts -- I 

        17   remember parts of it.  When we came out of the contempt -- or 

        18   the court zero, zero, zero, there were five experts that the 

        19   court felt the department should employ to ratchet up our 

        20   standard and our delivery of services as well as our 

        21   expertise which they felt that we did -- there was an absence 

        22   of.  One of them was an IEP person.  We were unable to find 

        23   an expert in IEP.  It was not clear to us exactly what this 

        24   person would be doing, and we had continually questioned what 

        25   is this person to do.  We couldn't find one.  We didn't know 



                            RALPH ROSENBERG COURT REPORTERS
                     OFC:  (808) 524-2090     FAX:  (808) 524-2596


                                                                       118



         1   what to advertise for.  We didn't know how to create the job 

         2   description for the IEP person. 

         3             As the dialogue continued, in the meantime there 

         4   was concern that the IEP process was not getting the results.  

         5   So the plan was then in the interim, while we were looking, 

         6   we would have a group of consultants to work with the special 

         7   education department to come up with a process for IEP, and 

         8   that's what you see that line out.  So the plan as you see 

         9   there, parts of it had been implemented through the training 

        10   process in IEPs, but as it stands there, I believe no.

        11        Q.   And when was this plan implemented?

        12        A.   Or parts of it?

        13        Q.   Parts of it.

        14        A.   It has been ongoing since '00.

        15        Q.   What part of '00, do you recall?

        16        A.   Fall is when it came out.  They started the 

        17   dialogue through fall and spring and --

        18        Q.   Okay.  Was it your understanding that this program 

        19   was, I guess, implemented using the super powers that the 

        20   court accorded the superintendent?

        21        A.   No.

        22        Q.   So that these experts, were they hired in a certain 

        23   fashion?

        24        A.   My understanding is that the experts are part of 

        25   the technical assist because Dr. Schrag was the -- what do I 



                            RALPH ROSENBERG COURT REPORTERS
                     OFC:  (808) 524-2090     FAX:  (808) 524-2596


                                                                       119



         1   want to say -- the lead person in putting together the team 

         2   and offering consultants.

         3        Q.   Is it your understanding that then the payments to 

         4   these experts were made through the Felix monitoring project?

         5        A.   That's my understanding.

         6        Q.   And as to who constituted this group of people, do 

         7   you know who that was?

         8        A.   I can see two faces in front of me, three with Judy 

         9   Schrag, and I don't remember their -- Jean, Jeannie, there's 

        10   two Jeans, I think.

        11        Q.   Vauwens, V-A-U-W-E-N-S?

        12        A.   Uh-huh.

        13        Q.   She was another one of those people?

        14        A.   Yes, and, Mr. Kawashima, that plan has evolved into 

        15   what the monitor now has asked for, which is that integrated 

        16   training plan for the department.  So that's evolved from 

        17   that specific to something much more large.

        18        Q.   And this is where I saw that term and was reminded 

        19   to ask you earlier.  There also within this mainland IEP 

        20   expert team was a Dr. Diane Sydoriak, generalist -- in 

        21   parentheses, general expertise in IEP process hyphen in-kind 

        22   support from the Columbus group, in parentheses.

        23        A.   Okay.  Now I understand, all right, and I didn't at 

        24   the time.  Remember I said earlier that Diane Sydoriak was 

        25   part of that team for that training and how they would work 



                            RALPH ROSENBERG COURT REPORTERS
                     OFC:  (808) 524-2090     FAX:  (808) 524-2596


                                                                       120



         1   together and I didn't know whether she was being paid or 

         2   whether she was just being there as a dialogue, from what 

         3   you've read to me, then that means she was working there, and 

         4   it's not part of the Columbus retention contract and we're 

         5   not paying for that through the teachers contract.  So I 

         6   would -- when she was in my meeting -- office there, that was 

         7   the first time I saw her and I didn't know how she was 

         8   connected, and she said Columbus was nice enough to let her 

         9   do this in addition to what they were doing, and that would 

        10   be, I would suspect --

        11        Q.   Do you know if she was paid for this expert 

        12   consultant work?

        13        A.   No, I don't.

        14        Q.   The fact that it says in-kind support, does it 

        15   suggest that she probably wasn't paid because she was already 

        16   being paid by Columbus?

        17        A.   My understanding of in-kind is that the person 

        18   would -- there's no money exchanged, I would suspect.

        19        Q.   So it would surprise you if in fact Ms. Sydoriak 

        20   was being paid her regular pay from Columbus and received a 

        21   stipend or some payment from the project?

        22        A.   It would concern me deeply.

        23        Q.   And the last person on that list of mainland IEP 

        24   expert team, though, is a Dr. Morina Piscolish 

        25   P-I-S-C-O-L-I-S-H.  Do you know who that is?



                            RALPH ROSENBERG COURT REPORTERS
                     OFC:  (808) 524-2090     FAX:  (808) 524-2596


                                                                       121



         1        A.   Yes.

         2        Q.   Who is that?

         3        A.   That is Dr. LeMahieu's wife.

         4        Q.   Did you know she was on this team?

         5        A.   No, I did not, sir.

         6        Q.   Now, I'm not sure if she performed the services 

         7   that is suggested in this proposed budget, but if she did all 

         8   or part it, it appears that she would have been paid $1,000 a 

         9   day for one week per month of four days for eight months, in 

        10   other words, $32,000, $1,000 a day 32 times in 32 days.  Do 

        11   you know if she ever performed any services for which she 

        12   received pay?

        13        A.   No, I don't.

        14        Q.   And in fact if you knew she was on this panel you 

        15   would have raised an issue about it?

        16        A.   Yes.

        17        Q.   Now, also, one last area, this -- we also received 

        18   a copy of a review report, and it is -- was completed by a 

        19   CPA, Allen Arakaki, CPA, Inc.  Are you aware of that review 

        20   report of the monitoring project?

        21        A.   Yes.

        22        Q.   You received copies of that, of course?

        23        A.   Yes.

        24        Q.   And my understanding is that this review report was 

        25   some type of either statutory or regulatory requirement that 



                            RALPH ROSENBERG COURT REPORTERS
                     OFC:  (808) 524-2090     FAX:  (808) 524-2596


                                                                       122



         1   the project, by virtue of its being the type of organization 

         2   it is, had to have done on a yearly basis; is that correct?

         3        A.   Yes.

         4        Q.   And I see one of the -- the very last page under 

         5   note 6, which is related party transactions, let me read to 

         6   you what it says, and then I'll ask you a question, "The 

         7   Organization," and that's capitalized because I think the 

         8   organization refers to the Felix monitoring project. 

         9        A.   Yes.

        10        Q.   "The Organization expended approximately $224,400 

        11   during the fiscal year ended June 30, 2000 for professional 

        12   fees and related expenses for monitoring and national experts 

        13   retained by the court-appointed monitor through a company of 

        14   which he is a director."  This suggests to me that these 

        15   expenses and the hiring of these national experts retained by 

        16   the monitor were then hired through his company.  Does that 

        17   sound right to you?

        18        A.   I --

        19        Q.   His company meaning a company in which he's a 

        20   director.  Are you aware of this?

        21        A.   No.  I have seen the report.  I read it over.  

        22   Perhaps not with as much attention that you've just brought 

        23   up now.  And looking at it is something that they do on a 

        24   yearly basis as part of the consent decree, but no, I'm not 

        25   aware of the specifics.



                            RALPH ROSENBERG COURT REPORTERS
                     OFC:  (808) 524-2090     FAX:  (808) 524-2596


                                                                       123



         1        Q.   I just point out, ma'am, that I was not sure as to 

         2   whether or not they were saying that he was a member of the 

         3   board of the project in reference to that, but then the next 

         4   sentence says, "The court-appointed monitor is also a board 

         5   member of the organization," meaning Felix monitoring 

         6   project, so it does seem, doesn't it, that this report by 

         7   this independent CPA suggests that these people were hired 

         8   through a company of which Ivor Groves was a director?

         9        A.   Yes.

        10        Q.   Rather than directly by the monitoring project?

        11        A.   (Witness nods.)

        12        Q.   Yes, it appears so?

        13        A.   From what it sounds like, yes.

        14                  SPECIAL COUNSEL KAWASHIMA:  Thank you.  No 

        15   further questions.

        16                  CO-CHAIR REPRESENTATIVE SAIKI:  Members, any 

        17   follow-up questions?  Vice-Chair Kokubun, followed by Senator 

        18   Sakamoto.  

        19                            EXAMINATION

        20   BY VICE-CHAIR KOKUBUN: 

        21        Q.   I actually don't have a question, Ms. Hamamoto.  I 

        22   had a request.  Is it possible for you to set up a practical 

        23   demonstration of ISPED for committee members?

        24        A.   Yes.

        25        Q.   Just so we could see exactly what's involved in 



                            RALPH ROSENBERG COURT REPORTERS
                     OFC:  (808) 524-2090     FAX:  (808) 524-2596


                                                                       124



         1   that and how it's formed?

         2        A.   I'll work through your office.

         3        Q.   Or work through the chair's or auditor's office.  

         4   That's fine.  Thank you. 

         5                  CO-CHAIR REPRESENTATIVE SAIKI:  Senator 

         6   Sakamoto, followed by Vice-Chair Oshiro.  

         7                            EXAMINATION

         8   BY SENATOR SAKAMOTO: 

         9        Q.   Following up on the resolution that Representative 

        10   Kawakami talked about and what happens to these children as 

        11   they transition out of the system, related to ISPED, I had 

        12   the opportunity to talk to some people from the National 

        13   Institute of Health that have been in town, and their 

        14   projects are research projects needing data, et cetera, and I 

        15   realized ISPED wasn't created to do data and research, but 

        16   because we're a state-wide system and because some of the 

        17   research that they are interested in deals with minority 

        18   populations, underserved populations, I guess I'm hopeful 

        19   that if some proposal were to come forward that, you know, 

        20   keeping confidentiality to what it needs to be that the 

        21   department would be willing to cooperate with the university 

        22   or Queen's or whatever entity that could possibly put some 

        23   research element together to develop tools to help equip our 

        24   teachers and preschool people with simple ways to identify 

        25   and do early intervention.



                            RALPH ROSENBERG COURT REPORTERS
                     OFC:  (808) 524-2090     FAX:  (808) 524-2596


                                                                       125



         1        A.   Assessment, yes.

         2        Q.   Early so you would be at least receptive to moving 

         3   forward if something like that were to develop?

         4        A.   Yes.

         5        Q.   Good, thank you. 

         6                  SENATOR SAKAMOTO:  Thank you, Chair.

         7                  CO-CHAIR REPRESENTATIVE SAIKI:  Vice-Chair 

         8   Oshiro.

         9                  VICE-CHAIR REPRESENTATIVE OSHIRO:  Thank you, 

        10   Co-Chair Saiki.

        11                            EXAMINATION

        12   BY VICE-CHAIR REPRESENTATIVE OSHIRO:  

        13        Q.     I'd just like to follow up on I think the 

        14   question I guess regarding the emergency appropriations asked 

        15   by I guess Co-Chair Saiki and Senator Slom.  You had stated 

        16   that you won't really have an idea about it until you 

        17   actually get a better assessment to what you've actually used 

        18   and what you already have; is that correct?

        19        A.   Yes.

        20        Q.   One of the issues I had brought up when 

        21   Ms. Johnston was here yesterday had to do, I guess, with the 

        22   left over emergency appropriations from the last session, 

        23   being that we've confirmed that there was about $17 million 

        24   in -- I guess that was unused for the emergency 

        25   appropriations.  She attributed parts of it to, I guess, the 



                            RALPH ROSENBERG COURT REPORTERS
                     OFC:  (808) 524-2090     FAX:  (808) 524-2596


                                                                       126



         1   strike, nonpayment of strike.  She estimated that would be 

         2   about 5 million, and she also estimated that a part of that 

         3   may be due to I guess vacant positions, but in asking her if 

         4   she could provide justification or information about that, 

         5   she said it was very difficult to obtain that kind of 

         6   information to give us any sort of estimate.  She gave us a 

         7   number of reasons, and I think I'm just bringing it to your 

         8   attention because that is something that we would be very 

         9   interested in in terms of being able to have that kind of 

        10   assurances.  Because from our perspective, $12 million in 

        11   excess for an emergency appropriation is quite concerning.  

        12   So I do hope we can follow up on that issue.

        13        A.   I'd like to respond to that particular issue.  The 

        14   emergency appropriation for the Felix response plan, the one 

        15   that we had the audit for, we spent down to 600,000.  The 

        16   other -- the other dollars that you're referring to I believe 

        17   were from EDNs --

        18        Q.   150?

        19        A.   Right.  No.  150 was 8 million, and then 2, 3 and 

        20   4 -- EDNs 200, 300, 400, and 500 had excess, and that's the 

        21   combined 12 or 14 million that you're talking about that 

        22   lapsed back into the system.  We asked the governor if he 

        23   would allow us to transfer those excess funds into EDN 100 

        24   and 150 so that we could use it to pay funding in there and 

        25   we were denied that request.  So the Felix response plan 



                            RALPH ROSENBERG COURT REPORTERS
                     OFC:  (808) 524-2090     FAX:  (808) 524-2596


                                                                       127



         1   emergency appropriation that we asked for, we spent that one 

         2   down to 600,000, and I'd like to clear that up for the 

         3   record.

         4        Q.   Thank you very much.

         5                  CO-CHAIR REPRESENTATIVE SAIKI:  Thank you 

         6   Co-Chair -- I'm sorry, Senator Buen, followed by Senator 

         7   Slom.  

         8                            EXAMINATION

         9   BY SENATOR BUEN:  

        10        Q.   Thank you, Ms. Hamamoto.  You know, it continues to 

        11   bother me about the special education teachers, some of them 

        12   have come to me, I guess they found out that I'm on this 

        13   committee, and they've asked me or talked to me about when 

        14   they applied for positions here.  These are local teachers 

        15   who have special education degrees, and they have applied to 

        16   the department and they had a hard time getting hired.  Are 

        17   you aware of this kind of problem?  Are you aware of this, 

        18   that they have applied and were not able to be hired?

        19        A.   Yes, we have had telephone calls from people who 

        20   have not been -- who are saying that they have special 

        21   education degrees and they have not been hired, and when we 

        22   go back and we do our investigation of why, we find at times 

        23   it may be several reasons, one is that the licensure may 

        24   not -- so you may be a special education teacher trained, but 

        25   you need to be licensed to be a teacher, and they may not 



                            RALPH ROSENBERG COURT REPORTERS
                     OFC:  (808) 524-2090     FAX:  (808) 524-2596


                                                                       128



         1   have passed licensure, which is the PRAXIS, so that may be 

         2   one. 

         3             Another one may be people that are employed by the 

         4   Department of Health as a special education teacher for their 

         5   programs run through the health department, but while they 

         6   may be special education teachers for the Department of 

         7   Health, they don't qualify under the Department of 

         8   Education's requirements in our system, and you also need to 

         9   be licensed in the our system.  You do not need to be 

        10   licensed in the Department of Health to be a teacher there.  

        11   So as we go through the investigation of why, there are those 

        12   that we found that we have been in error and we need to 

        13   correct and we need to bring onto the system, and there are 

        14   those that we have to explain that there are other mandates 

        15   that while they may have worked as a special education 

        16   teacher or have degrees, does not necessarily mean that they 

        17   can just be brought into the department.  So we'd have to go 

        18   and look at what's behind each request, but we are addressing 

        19   it, and yes, I am aware of these concerns.

        20        Q.   Thank you.

        21                  CO-CHAIR REPRESENTATIVE SAIKI:  Senator Slom, 

        22   followed by Representative Ito.

        23                  SENATOR SLOM:  Thank you, Co-Chair Saiki.

        24                            EXAMINATION

        25   BY SENATOR SLOM:  



                            RALPH ROSENBERG COURT REPORTERS
                     OFC:  (808) 524-2090     FAX:  (808) 524-2596


                                                                       129



         1        Q.   Ms. Hamamoto, I was reviewing my notes and I'm not 

         2   clear on one thing.  We were talking mostly about the 

         3   Columbus contract, although we did talk about Na Laukoa 

         4   before.  Were you on the committee that actually reviewed Na 

         5   Laukoa's ability to perform the technical assistance?

         6        A.   No, sir.

         7        Q.   Because there was testimony that in fact you were 

         8   involved, but you were not involved in that?

         9        A.   No, sir, and I believe if we go back to the records 

        10   of those people who were there, my name is absent, but I 

        11   remember that was Dr. Nakashima, I think, who said that I may 

        12   have been there.

        13        Q.   Yes.

        14        A.   Dr. Nakashima sees me a lot, so I think he thinks 

        15   I'm in a lot of the meetings, but no, I was not in that 

        16   particular meeting and I was not involved in either the PREL 

        17   contract or Na Laukoa's relationship with the department.

        18        Q.   In any way?

        19        A.   Until the last month or so.

        20        Q.   Okay, thank you. 

        21                  SENATOR SLOM:  Thank you, Co-Chair.

        22                  CO-CHAIR REPRESENTATIVE SAIKI:  Representative 

        23   Ito.

        24                  REPRESENTATIVE ITO: Thank you, Co-Chair Saiki.

        25                            EXAMINATION



                            RALPH ROSENBERG COURT REPORTERS
                     OFC:  (808) 524-2090     FAX:  (808) 524-2596


                                                                       130



         1   BY REPRESENTATIVE ITO: 

         2        Q.   Superintendent, you know, hearing the testimony of 

         3   Mr. Koyama and yesterday we had Assistant Superintendent 

         4   Laurel Johnston, and you mentioned a system this morning that 

         5   you wanted to, you know, somehow get out of that Columbia 

         6   contract and get our own system going.  Does that mean we'll 

         7   look forward to reorganization or restructuring or overhaul 

         8   of the DOE?

         9        A.   Yes, yes.

        10        Q.   Is there a plan being drafted right now?

        11        A.   There -- this -- we will share this, and the reason 

        12   I'm hesitant because I realize we're on the record and should 

        13   I -- I don't want to put out anything that will cause undue 

        14   anxiety because many questions will come up and there haven't 

        15   been answers, and most importantly I don't want the teachers 

        16   and the principals to believe that we're going through 

        17   restructuring, what's going to happen, where are we going, 

        18   are there going to be changes, because it's about how do we 

        19   support them and allow them to do the best that they can do.  

        20   So we have begun the discussion.  In fact, we've talked about 

        21   what we would look like so we can align our resources so that 

        22   both personnel, curriculum, as well as funding will go to 

        23   support complexes so that we can have outcomes and what are 

        24   the outcomes that we're looking at. 

        25             The plan that I shared with HGEA and with the 



                            RALPH ROSENBERG COURT REPORTERS
                     OFC:  (808) 524-2090     FAX:  (808) 524-2596


                                                                       131



         1   assistant superintendents is that we will do our session by 

         2   coming up with the different kinds of configurations that may 

         3   or may not work and what we choose to do we should be able to 

         4   support it with the data that this is the best possible 

         5   option.  At that time we will present it publicly to the 

         6   legislature, to the board, get input, and we also need to 

         7   present it to the principals to get input from the field.  I 

         8   believe that if we're looking at an alignment of the 

         9   Department of Education to produce outcomes that we want, 

        10   that everyone has to buy in and everyone has to agree that 

        11   this is what we need to do to move forward.  Without that 

        12   kind of ownership or buy-in, no matter what structure we 

        13   imposed upon the Department of Education, I believe it will 

        14   not be as productive or as successful as we would like it to 

        15   be. 

        16             So if we're looking at doing things differently, I 

        17   want to ensure that when we do it differently, the bottom 

        18   line and the action is based on will this improve student 

        19   achievement, and if the action does not result in better 

        20   student achievement, then I question what is the purpose of 

        21   the move, and that's what we have in place and that's what 

        22   we'll be moving on with the district superintendents already 

        23   this week we've begun the dialogue.

        24        Q.   I remember the conference with all the principals 

        25   at Hawaii Village and you had General Senseki there and he 



                            RALPH ROSENBERG COURT REPORTERS
                     OFC:  (808) 524-2090     FAX:  (808) 524-2596


                                                                       132



         1   said that he went to transform the Army and he used the words 

         2   lean, mean, and lethal, so is that going to be part of the 

         3   DOE?

         4        A.   Yes, you have do the hook.

         5        Q.   Okay.  I look forward to working with you, 

         6   Superintendent.  Thank you. 

         7                  REPRESENTATIVE ITO:  Thank you, Co-Chair.

         8                  CO-CHAIR REPRESENTATIVE SAIKI:  Representative 

         9   Kawakami.  

        10                            EXAMINATION

        11   BY REPRESENTATIVE KAWAKAMI:  

        12        Q.   Just a couple of questions.  Following up on the 

        13   service testing.

        14        A.   Yes.

        15        Q.   How were the testers selected?

        16        A.   The service testers are a combination of the 

        17   Department of Health people who have been trained, Department 

        18   of Education, and a third group that represents the monitor's 

        19   office, and the monitor selects these people.  Well, not the 

        20   monitor, but the monitoring office.  The three groups come 

        21   together.  They were trained.  The names of the students or 

        22   cases are randomly selected through a program run by the 

        23   university, UHRC, who also has the contract regarding service 

        24   testing.  They get the results.  They send the people out.  

        25   They do the case review.  They send it back to the 



                            RALPH ROSENBERG COURT REPORTERS
                     OFC:  (808) 524-2090     FAX:  (808) 524-2596


                                                                       133



         1   university, who does the final write-up to us.

         2        Q.   Okay, so it differs from island to island, am I 

         3   correct?

         4        A.   No.  The reviewers --

         5        Q.   You use the same team?

         6        A.   No.  The teams are always reconstituted, but they 

         7   are the same pool, but the combinations are reconstituted, 

         8   and sometimes Department of Health leads the team, the 

         9   Department of Education, and the monitor's office, so there 

        10   is a pool of qualified individuals that have been trained and 

        11   then they are put together based upon who can make the dates.

        12        Q.   So in the scoring or, et cetera --

        13        A.   Yes.

        14        Q.   -- is there consistency in what you see between the 

        15   testing?

        16        A.   Yes, I do.  There is rater reliability.  I believe 

        17   that's part of that training that Ray Foster comes down to 

        18   do, so we have rater reliability.

        19        Q.   Thank you very much.

        20                  REPRESENTATIVE KAWAKAMI:  Thank you.

        21                  CO-CHAIR REPRESENTATIVE SAIKI:  Thank you.  

        22   Members, any other follow-up questions?  If not, Co-Chair 

        23   Hanabusa.

        24                            EXAMINATION

        25   BY CO-CHAIR SENATOR HANABUSA:  



                            RALPH ROSENBERG COURT REPORTERS
                     OFC:  (808) 524-2090     FAX:  (808) 524-2596


                                                                       134



         1        Q.   Ms. Hamamoto, there's another area that bothers me, 

         2   and I'd ask you to look into it too.  This is the use of 

         3   federal impact aid, and I don't know if you were here when I 

         4   asked Ms. Johnston.  As you know, in 2000 legislative session 

         5   we enacted what is called Act 2, 3, 4, which gave the 

         6   department basically the right to retain all surplus, for 

         7   lack of a better description, on the federal impact aid which 

         8   you receive.

         9        A.   Yes.

        10        Q.   And I think the department and the budget and 

        11   finance agreed to 24.9 or something as the threshold.  

        12   Anything above that that you received -- the department 

        13   receives you're able to retain?

        14        A.   Yes.

        15        Q.   However, as part of that law, the legislature was 

        16   very specific as to the use of the money in terms of a 

        17   proportionate use.  When we went through how the PREL and Na 

        18   Laukoa contract came to be and also when we looked at the -- 

        19   what I think Chris Ito identified as EDN 100 expenditures, 

        20   you have a lot of EDN 150 in there as well.  My concern is as 

        21   follows:  One -- first of all, let me just ask you, are you 

        22   familiar with the use of the federal impact aid and how those 

        23   particular contracts came to be funded through the use of the 

        24   federal impact aid process?

        25        A.   Some knowledge perhaps, yes.



                            RALPH ROSENBERG COURT REPORTERS
                     OFC:  (808) 524-2090     FAX:  (808) 524-2596


                                                                       135



         1        Q.   Oh, you are.  Then let me ask you, what is your 

         2   understanding as to when -- and it was I believe Dr. LeMahieu 

         3   who requested of the governor for the right to use these 

         4   funds for EDN 100, and the governor approved the use of the 

         5   funds for EDN 100.  Is it your understanding, then, that the 

         6   funds had to be used for EDN 100 purposes?

         7        A.   I believe I -- was EDN 100 and I think the 

         8   reimbursement -- and I'm saying I think because this is my 

         9   recollection.  I was not in many of the meetings regarding 

        10   the expenditure or how the funds would be allocated out or 

        11   designated.  My understanding is it comes in 100 and now 150 

        12   and they are put in there.  The surplus, then, because it is 

        13   surplus is to be proportionately divided, and we had some 

        14   concerns -- we had various interpretations, is 

        15   proportionately proportionate across all the EDNs or 

        16   proportionate between what we spend in EDN 100 and 150, and 

        17   we need clarification and we need to seek clarification on 

        18   that, what does that proportionate mean.  I do believe that 

        19   the EDN -- when the governor approved or released the funds, 

        20   he released it to 100, but because we thought about 

        21   proportionate, then we took that 100 and it was 

        22   proportionately spread over 100 and 150.  So I believe there 

        23   may not have been that clarity of the intent of that 

        24   proportion and what it was meant to do.

        25        Q.   But there's no question, right, when you requested 



                            RALPH ROSENBERG COURT REPORTERS
                     OFC:  (808) 524-2090     FAX:  (808) 524-2596


                                                                       136



         1   the funds from the governor you told him that it would be 

         2   used in EDN -- when I say you, I mean the department -- it 

         3   would be used in EDN 100?

         4        A.   Yes.  I'm wondering if at the time the request was 

         5   made the law was not enacted and -- because the law begins in 

         6   July, the request would have gone to the governor 

         7   sometime prior --

         8        Q.   In June?

         9        A.   Right.  So it would have been the only mechanism we 

        10   would have had would be to ask for it in 100, and that was -- 

        11   we know that in the transition year it came in 100, we put it 

        12   in 100, and it should have been coming in the next year and 

        13   it should have been proportionately disbursed.

        14        Q.   The other question is the Board of Education, then, 

        15   would have had to approve that appropriation -- quote/unquote 

        16   appropriation in terms of for what amounts you could use that 

        17   excess over the allotted amount?

        18        A.   Yes.

        19        Q.   You would agree with that?

        20        A.   Yes.

        21        Q.   What I'd like to also request that you do is that 

        22   you go back to the expenditure.  It's troubling to me if you 

        23   add the categories, it is more than the proportionate share 

        24   that went to EDN 150, and I read the law to say proportionate 

        25   over the ID programs of the department, and that goes from 



                            RALPH ROSENBERG COURT REPORTERS
                     OFC:  (808) 524-2090     FAX:  (808) 524-2596


                                                                       137



         1   EDN 100, 150, all the way to 500.  I believe there's six 

         2   categories, and proportionate by the amounts that are 

         3   appropriated.  I think you've got to take the total 

         4   appropriation and get a percentage of what each amount -- so 

         5   EDN 100 is about 800 million out of 1 billion, so in that, 

         6   and provide us with your analysis, because I personally 

         7   happen to believe that the department's violated the law in 

         8   that expenditure category.

         9        A.   All right.

        10                  CO-CHAIR REPRESENTATIVE SAIKI:  Thank you.  

        11   Members, any other follow-up questions?  Representative 

        12   Leong. 

        13                  REPRESENTATIVE LEONG: Thank you, Co-Chair 

        14   Saiki.  

        15                            EXAMINATION

        16   BY REPRESENTATIVE LEONG:  

        17        Q.   I just wanted to hear it again, who pays for the 

        18   service testing instrument owned by Dr. Groves and Foster?

        19        A.   Who pays for the instrument?

        20        Q.   Yeah, that's used.

        21        A.   I don't believe that we pay for the instrument.  We 

        22   pay for the service --

        23        Q.   The service, exactly.

        24        A.   Of service testing.  We pay the monitor's office 

        25   for the service testing service.



                            RALPH ROSENBERG COURT REPORTERS
                     OFC:  (808) 524-2090     FAX:  (808) 524-2596


                                                                       138



         1        Q.   Is this the same instrument that was initiated here 

         2   in Hawaii and now used on the mainland?

         3        A.   I believe it's customized for Hawaii.  I don't know 

         4   if it's used on the mainland, what is used in Hawaii.

         5        Q.   I was wondering if it was the one that was 

         6   initiated here through our schools and then -- certain 

         7   schools and then copyrighted under his name?

         8        A.   I don't know. 

         9        Q.   Thank you, Ms. Hamamoto.

        10                  CO-CHAIR REPRESENTATIVE SAIKI:  Thank you.  

        11   Members, any other follow-up questions. 

        12             If not, I just have a short one, Ms. Hamamoto.

        13                            EXAMINATION

        14   BY CO-CHAIR REPRESENTATIVE SAIKI: 

        15        Q.   When Paula Yoshioka testified last week she had 

        16   stated that at least with year one of the Columbus contract 

        17   the amount of approximately $112,000 was allocated per 

        18   recruited teacher, and she also explained that if in fact the 

        19   actual expense of bringing that teacher over here and 

        20   retaining -- hiring the teacher fell below the $112,000 mark, 

        21   then Columbus would keep the difference.  Do you -- were you 

        22   here that day when she --

        23        A.   Yes, yes, sir, and let me offer some clarity there.  

        24   The hiring -- recruiting the teacher, the up -- recruiting 

        25   the teacher, flying them over to get recruited were charged 



                            RALPH ROSENBERG COURT REPORTERS
                     OFC:  (808) 524-2090     FAX:  (808) 524-2596


                                                                       139



         1   in track 2 of that.  Track 3, which is the salaries, includes 

         2   the administrative services for the professional development, 

         3   the salaries, the fringe benefits, and, you know, whatever is 

         4   included to continue to maintain the teacher here.  So it's 

         5   just not the salaries in that particular track.  It's -- the 

         6   other parts of that makes up a person's employment services.

         7        Q.   Basically it's a package?

         8        A.   It's a package.

         9        Q.   So does the DOE keep an accounting, though, of the 

        10   cases where the actual cost of the package falls below 

        11   112,000?

        12        A.   Every month we're -- a bill is submitted.  We're 

        13   invoiced on a monthly basis, and I -- it's by track 1, 2, and 

        14   3.  They also give us the back-up documentation of each 

        15   teacher and how much they pay the teacher salary for that 

        16   month, so we're charged that amount, and I don't know -- and 

        17   they've never given us -- we've requested a detailing of, you 

        18   know, how -- what is that breakdown so that we know maybe 

        19   what their profit margin is, but we've never -- they have not 

        20   complied and they have never given it to us.  They will give 

        21   us what they are paying the teacher or how much we're paying 

        22   for that teacher per month.  That's what we're able to get.

        23        Q.   So the department relies on Columbus to provide 

        24   that information on profit margin?  We have no idea what the 

        25   profit margin is?



                            RALPH ROSENBERG COURT REPORTERS
                     OFC:  (808) 524-2090     FAX:  (808) 524-2596


                                                                       140



         1        A.   I have no idea.  We're invoiced by the track and 

         2   how much they -- what their cost is to us and we pay off of 

         3   that, so I don't know.

         4        Q.   Can you continue your efforts to secure that 

         5   information from Columbus and then share it with the 

         6   committee?

         7        A.   Yes.

         8        Q.   Thank you very much. 

         9                  CO-CHAIR REPRESENTATIVE SAIKI:  Members, any 

        10   other follow-up questions? 

        11             If not, Ms. Hamamoto, thank you very much for your 

        12   testimony today.

        13                  MS. HAMAMOTO:  Thank you. 

        14                  CO-CHAIR REPRESENTATIVE SAIKI:  Members, we 

        15   just have a housekeeping matter we wanted to go over with -- 

        16   go over right now.

        17                  CO-CHAIR SENATOR HANABUSA:  We have received 

        18   some inquiries about Dr. LeMahieu, and at this time the 

        19   co-chairs would like to put on the record and give to the 

        20   public an idea of what has occurred.  The committee made the 

        21   decision to give Dr. LeMahieu the option as to whether or not 

        22   he would appear before the committee, and I have shared with 

        23   the committee my conversations with Dr. LeMahieu in the 

        24   executive session, and some members of this committee have 

        25   also had conversations with Dr. LeMahieu.  Where my 



                            RALPH ROSENBERG COURT REPORTERS
                     OFC:  (808) 524-2090     FAX:  (808) 524-2596


                                                                       141



         1   conversation ended with Dr. LeMahieu, and I believe it was on 

         2   Wednesday of this week, was that it was the committee's 

         3   feeling that the decision should be made by him as to whether 

         4   he wanted to come forward and give testimony, and 

         5   Dr. LeMahieu had informed me that by the end of that day he 

         6   would either let Co-Chair Saiki or me know if he would be 

         7   appearing.  We have not heard from him, so we are assuming 

         8   that he has chosen not to appear before the committee, and as 

         9   the committee is very well aware, and we'd like the public to 

        10   know, that though Dr. LeMahieu was identified in our original 

        11   subpoena request, we did not issue a subpoena of 

        12   Dr. LeMahieu, so he is not compelled to be here.  We asked 

        13   that if he wished to come, that he come voluntarily.  So with 

        14   that, we hope that that addresses some of the questions that 

        15   people may have, and I believe that it was a gesture of 

        16   sensitivity by the committee to have left the option to the 

        17   doctor himself to make that decision.  So is there any 

        18   comments that any other members would like to make at this 

        19   time regarding that? 

        20             Members, the co-chairs would like to make a motion 

        21   at this time in that we will convene in -- we'll move to 

        22   executive session.  We will not reconvene this hearing.  At 

        23   the end of executive session, this hearing will be over, and 

        24   our next scheduled hearing will be next week Friday at 9:00 

        25   o'clock, so members, the purpose of this executive session is 



                            RALPH ROSENBERG COURT REPORTERS
                     OFC:  (808) 524-2090     FAX:  (808) 524-2596


                                                                       142



         1   to further discuss with our attorneys the status of the 

         2   remaining witnesses and what action the committee will 

         3   authorize the attorneys to take.  So is there any questions 

         4   or discussion at this moment?  If not, Co-Chair Saiki.

         5                  CO-CHAIR REPRESENTATIVE SAIKI:  Co-Chair 

         6   Hanabusa?

         7                  CO-CHAIR SENATOR HANABUSA:  Aye.

         8                  CO-CHAIR REPRESENTATIVE SAIKI:  Vice-Chair 

         9   Kokubun?

        10                  VICE-CHAIR SENATOR KOKUBUN:  Aye.

        11                  CO-CHAIR REPRESENTATIVE SAIKI:  Vice-Chair 

        12   Oshiro?

        13                  VICE-CHAIR REPRESENTATIVE OSHIRO:  Aye.

        14                  CO-CHAIR REPRESENTATIVE SAIKI:  Senator Buen?

        15                  SENATOR BUEN:  Aye.

        16                  CO-CHAIR REPRESENTATIVE SAIKI:  Representative 

        17   Ito?

        18                  REPRESENTATIVE ITO:  Aye.

        19                  CO-CHAIR REPRESENTATIVE SAIKI:  Representative 

        20   Kawakami?

        21                  REPRESENTATIVE KAWAKAMI:  Aye.

        22                  CO-CHAIR REPRESENTATIVE SAIKI:  Representative 

        23   Leong?

        24                  REPRESENTATIVE LEONG:  Aye.

        25                  CO-CHAIR REPRESENTATIVE SAIKI:  Representative 



                            RALPH ROSENBERG COURT REPORTERS
                     OFC:  (808) 524-2090     FAX:  (808) 524-2596


                                                                       143



         1   Marumoto?

         2                  REPRESENTATIVE MARUMOTO:  Aye.

         3                  CO-CHAIR REPRESENTATIVE SAIKI:  Senator 

         4   Matsuura is excused.  Senator Sakamoto?

         5                  SENATOR SAKAMOTO:  Yes, sir.  

         6                  CO-CHAIR REPRESENTATIVE SAIKI:  Senator Slom?

         7                  SENATOR SLOM:  Aye.

         8                  CO-CHAIR REPRESENTATIVE SAIKI:  Eleven ayes 

         9   and one excused.

        10                  CO-CHAIR SENATOR HANABUSA:  Thank you.  

        11   Members, we will convene in executive session in the next 

        12   room, and members of the public, thank you very much.  Thank 

        13   you, Superintendent Hamamoto.  And next week Friday will be 

        14   our next hearing, 9:00 here.  Thank you very much.

        15                            (Hearing adjourned at 12:47 p.m.)

        16   

        17   

        18   

        19   

        20   

        21   

        22   

        23   

        24   

        25   



                            RALPH ROSENBERG COURT REPORTERS
                     OFC:  (808) 524-2090     FAX:  (808) 524-2596


                                                                       144



         1   STATE OF HAWAII             )

         2                               ) ss: 

         3   CITY & COUNTY OF HONOLULU   ) 

         4   

         5                  I, JESSICA R. PERRY, do hereby certify: 

         6                  That on November 10, 2001, at 9:06 a.m. the 

         7   foregoing proceedings were taken down by me in machine 

         8   shorthand and was thereafter reduced to typewritten form by 

         9   computer-aided transcription; that the foregoing represents, 

        10   to the best of my ability, a full, true and correct 

        11   transcript of the proceedings had in the foregoing matter. 

        12                  I further certify that I am not attorney for 

        13   any of the parties hereto, nor in any way concerned with the 

        14   cause. 

        15   

        16                  DATED this 18th day of November 2001, in 

        17   Honolulu, Hawaii.  

        18   
             
        19   
             
        20   
             
        21   
                                           
        22                            
             
        23   Jessica R. Perry, CSR  404
             Notary Public, State of Hawaii
        24   My commission expires: 5/11/03
                       
        25   



                            RALPH ROSENBERG COURT REPORTERS
                     OFC:  (808) 524-2090     FAX:  (808) 524-2596