Allows schools to set up debit card programs for teachers.

A BILL FOR AN ACT

SECTION 1. The legislature finds that implementation of the weighted student formula, established by Act 51, Session Laws of Hawaii 2005, was supposed to bring greater transparency to school funding and equalize some inequities. It would also grant principals more autonomy over spending decisions at the school level – allowing a principal to hire more staff or implement a program or undertake additional renovation work, based on school priorities.

Unfortunately, the Department of Education failed to allow funds currently spent in the central bureaucracy to be distributed by the formula to the schools. This failure to release funds is part of the reason the Board of Education recently took steps to alleviate the fiscal shortfalls that public schools would face. The Board of Education decided to phase-in the weighted student formula, calling for only 10% of the total change under the weighted student formula to be implemented. What this change means is that a school that would have lost $100,000 in funding in FY 2006-2007 will lose only $10,000. It also means that any school that stood to gain $100,000 in funding will gain only $10,000 in FY 2006-2007. The extra funding could have been used by principals to implement programs to address long standing issues, such as shortage of supplies.

The legislature further finds that shortages of school supplies have been an ongoing problem for many years. Additional funding through the weighted student formula could alleviate this problem. For each individual school and classroom, however, the shortages could be for different supplies. Therefore, to properly address the problem, purchasing power should be concentrated at the classroom level. The purpose of this Act is to allow for the establishment of a debit card program at public schools so teachers can use the debit cards for specific purchases within a set dollar limit.

SECTION 2. The department of education shall establish a program that gives schools the choice to create a debit card system for the purpose of purchasing school supplies when there is a shortage of supplies in the classroom. The department shall adopt rules under chapter 91 governing the administration of this program.

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 2006-2007, for the purposes of this Act; provided that the amount appropriate shall not be used for staff salaries, and provided that the general fund revenues for the program shall come from the fiscal year 2006-2007 allocation to EDN 200, 300, or 400, as determined by the department of education.

SECTION 4. The sum appropriated shall be expended by the department of education for the purposes of this Act.

SECTION 5. This Act shall take effect on July 1, 2006.