STAND. COM. REP. NO. 1336
Honolulu, Hawaii
, 2005
RE: S.C.R. No. 180
S.D. 1
Honorable Robert Bunda
President of the Senate
Twenty-Third State Legislature
Regular Session of 2005
State of Hawaii
Sir:
Your Committee on Higher Education, to which was referred S.C.R. No. 180 entitled:
"SENATE CONCURRENT RESOLUTION REQUESTING THE UNIVERSITY OF HAWAII TO CONDUCT A STUDY OF STATE FUNDING CRITERIA AND MODELS UTILIZED AT OTHER PUBLICLY FUNDED INSTITUTIONS OF HIGHER EDUCATION FOR A PER STUDENT FUNDING FORMULA,"
begs leave to report as follows:
The purpose of this measure is to request the University of Hawaii (UH) to conduct a study of state funding criteria and models utilized at other publicly funded institutions of higher education for a per student funding formula.
Your Committee received comments on this measure from the UH.
The UH's net operating funds have increased only modestly over the past five years, and during the same period enrollments system-wide have increased thirteen per cent, resulting in a greater variance between general funds received and the number of students enrolled.
Increased autonomy for the UH would be better served if funding decisions are based upon mutually accepted criteria that reflect the priorities of the State and the UH, rather than the current options of lump sum or line item funding.
Formula-based funding could provide greater flexibility to the Legislature by emphasizing certain workforce development areas, such as teacher education or nursing, that would offer a greater incentive for students studying in those areas.
Your Committee finds that the State needs to have a funding model of higher education that promotes greater efficiency and planning in the institution. Formula-based funding could provide an incentive:
(1) For expansion of the UH where it needs development;
(2) For reduction of the UH where it needs minimization; and
(3) To formulate disciplined decisions regarding academically critical areas that must be subsidized under all circumstances.
Your Committee further finds that there are many criteria to consider in determining an optimal formula, including enrollment, strategic initiatives, teaching and research performance indicators, and peer comparisons. However, the determination of an appropriate basis on which funding decisions should be made needs careful analysis, calculation, and institutional research that is not available at this time.
Your Committee has amended this measure by requesting t
he Board of Regents to report on the status of a per student funding formula for UH Manoa to the Legislature no later than twenty days before the convening of the Regular Session of 2006 and on the status of a per student funding formula for UH-Hilo, UH-West Oahu, and the UH's seven community colleges no later than twenty days before the convening of the Regular Session of 2007.As affirmed by the record of votes of the members of your Committee on Higher Education that is attached to this report, your Committee concurs with the intent and purpose of S.C.R. No. 180, as amended herein, and recommends that it be referred to the Committee on Ways and Means, in the form attached hereto as S.C.R. No. 180, S.D. 1.
Respectfully submitted on behalf of the members of the Committee on Higher Education,
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____________________________ CLAYTON HEE, Chair |
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