Report Title:

Charter School Governance; Task Force

Description:

Establishes the Task Force on Charter School Governance. Clarifies the funding mechanism for charter schools. Appropriates funds. (HB1136 HD2)

HOUSE OF REPRESENTATIVES

H.B. NO.

1136

TWENTY-THIRD LEGISLATURE, 2005

H.D. 2

STATE OF HAWAII

  

 

A BILL FOR AN ACT

 

relating to education.

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

SECTION 1. The legislature supported the concept of new century charter schools as "a new approach to education that is free of bureaucratic red tape and accommodating of the individual needs of students to allow the State to dramatically improve its educational standards for the twenty-first century" (Act 62, Session Laws of Hawaii 1999).

However, the legislature recognizes that the existing charter school law must be improved. The auditor recently audited the Na Wai Ola Waters of Life Charter School and found that "The charter school law lacks clear authority and responsibility assignments, resulting in conflicting roles and uncertainty. It also provides little basis for ensuring accountability and school viability, and does not address issues that may expose the State to unintended liabilities and entanglements."

The legislature also finds a need for more equitable and stable funding for the basic operations of new century charter schools. Hawaii's twenty-seven new century charter schools employ about five hundred public employees and educate about five thousand students. These schools receive funding for their operations and facilities through a per pupil allocation, according to a statutory formula based on figures reported in the most recently published department of education consolidated annual financial report. However, if this report continues to be used and the funding formula is not updated, charter schools will be given lower per pupil allocations than they should actually receive.

The purpose of this Act is to:

(1) Create an effective framework for overseeing and supporting new and existing charter schools by establishing a task force to identify and recommend revisions to the existing charter school law; and

(2) Ensure more equitable and stable funding for the basic operations of new century charter schools by updating their funding mechanism and appropriating funds.

SECTION 2. Section 302A-1185, Hawaii Revised Statutes, is amended as follows:

1. By amending subsection (a) to read:

"(a) Beginning with the fiscal year [2004-2005 supplemental] 2005-2006 budget request, and each budget request thereafter, the charter school administrative office shall submit a request for general fund appropriations for each new century charter school based upon:

(1) The actual and projected enrollment figures in the current school year for each charter school; and

(2) A per pupil amount for each regular education and special education student, which shall be equivalent to the total per pupil cost based upon the most recent average enrollment in all cost categories, including comprehensive school support services but excluding special education services, and for all means of financing except federal funds, as [reported] reflected in the most recently [published] enacted department of education [consolidated annual financial report,] budget; provided that the legislature may make an adjustment to the per pupil allocation for the purposes of this section. No deductions from this allocation shall be made without the written approval of the executive director of the charter school administrative office.

The legislature shall make an appropriation based upon the budget request[;], including additional appropriations for collective bargaining increases for charter school employee members of collective bargaining units; provided that the legislature may make additional appropriations for [collective bargaining increases for charter school employee members of collective bargaining units,] fringe, workers' compensation, and other employee benefits, facility costs, and for other requested amounts. The governor, pursuant to chapter 37, may impose restrictions or reductions on charter school appropriations similar to those imposed on other public schools."

2. By amending subsection (f) to read:

"(f) The department shall transfer, no later than November 15, additional funds from EDN 100 to EDN 600 for new century charter schools whose student enrollment, verified on or immediately prior to October 15 as provided for by subsection (c), exceeds the new century charter schools' projected student enrollment, in an amount corresponding to the number of additional students and the per pupil allocation. The charter school administrative office shall transfer from EDN 600 to EDN 100 any excess per pupil allocations for new century charter schools whose verified student enrollment is lower than their projected student enrollment in an amount corresponding to the lower number of students and the per pupil allocation."

SECTION 3. There is appropriated out of the general revenues of the State of Hawaii the sum of $           or so much thereof as may be necessary for fiscal year 2005-2006 and the sum of $          or so much thereof as may be necessary for fiscal year 2006-2007 for per pupil allocations to new century charter schools.

The sums appropriated shall be expended by the department of education for the purposes of this Act.

SECTION 4. (a) There is established the task force on charter school governance to identify and recommend to the legislature revisions to the existing charter school law and to help create an effective framework for overseeing and supporting new and existing charter schools. The recommendations of the task force shall, at a minimum, address:

(1) The powers, authority, and requirements of schools, local school boards, the charter school administrative office, and board of education, including:

(A) The responsibility and authority to impose sanctions when a charter school fails to comply with contractual or statutory requirements;

(B) The authority for and management of technical support and interventions, including mergers and closure of charter schools and transfer of students to other public schools; and

(C) The ability to impose accountability measures for all charter schools, such as appropriate accreditations and adherence to generally accepted government accounting standards;

(2) An application and start-up process for charter schools requiring sufficient time and proper scrutiny to ensure a school's readiness prior to accepting students;

(3) Limitation of charter school exemptions from laws to only those laws applying to public schools;

(4) The State's rights and liabilities when charter schools or their governing corporate bodies acquire real property or conduct for-profit business activities, including clarification of charter schools' authority to incur debt and the State's responsibility in case of default;

(5) The conflict of interest inherent in the charter school administrative director position;

(6) The eligibility, administration, and funding of state benefits for non-certificated employees of charter schools;

(7) The feasibility of assisting charter schools with facilities needs, including priority access to any vacant government buildings suitable for conversion to a school;

(8) The feasibility of creating a formal charter school board to bring needed expertise and focus charter school support and accountability issues, and to operate in a manner similar to the Hawaii teachers standards board; and

(9) The feasibility of raising the cap on the number of new century charter schools in the state.

(b) The task force shall consist of sixteen members as follows:

(1) The executive director of the charter schools administrative office or the executive director's designee, who shall serve as the lead chairperson and facilitator of the task force;

(2) The state auditor or the auditor's designee;

(3) The superintendent of education or the superintendent's designee;

(4) The chairperson of the board of education or the chairperson's designee;

(5) The chairperson of the charter schools committee of the board of education or the chairperson's designee;

(6) The director of the department of human resources development or the director's designee;

(7) The director of the department of budget and finance or the director's designee;

(8) The dean of the University of Hawaii college of education or the dean's designee;

(9) The director of the Hawaii Educational Policy Center or the director's designee;

(10) A representative from the Hawaii State Teachers Association;

(11) A representative from the Hawaii Government Employees Association;

(12) A representative from the Hawaii Charter Schools Network;

(13) A representative from Na Lei Na'auao Native Hawaiian Charter School Alliance;

(14) A representative from the Ho'okako'o Corporation;

(15) A representative from Ho'olako Like; and

(16) A representative from the business community appointed without regard to section 26-34, by the governor.

The charter school administrative office shall staff the task force.

(c) The task force on charter school governance may form advisory subcommittees to obtain input from key stakeholders as determined necessary by the task force.

(d) Members of the task force on charter school governance shall serve without compensation but shall be reimbursed for expenses, including travel expenses, necessary for the performance of their duties.

(e) The charter school administrative office shall submit a report to the legislature, of the task force's progress, findings, and recommendations, no later than twenty days prior to the convening of the regular session of 2006.

SECTION 5. There is appropriated out of the general revenues of the State of Hawaii the sum of $75,000 or so much thereof as may be necessary for fiscal year 2005-2006 to support the operations of the task force on charter school governance.

The sum appropriated shall be expended by the charter schools administrative office for the purposes of this Act.

SECTION 6. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 7. This Act shall take effect upon its approval; provided that sections 3 and 5 shall take effect on July 1, 2005.