Providing an additional funding allocation for new century charter schools' facilities and to allow charter schools access to state land and facilities. (SD1)

A BILL FOR AN ACT

SECTION 1. Through its constitution and statutes, Hawaii has made commitments to public education and public schools. Until recently, public education was established, supported, and controlled through the board of education. However, the creation of new century charter schools outside of the department of education has created two groups of public schools, each with its own system of funding.

Hawaii's twenty-seven new century charter schools are public schools that employ approximately five hundred public employees and educate approximately five thousand seven hundred public school students. New century charter schools receive their operational and facility funding through a per pupil allocation. This allocation has changed from a determination by the state auditor to a statutory formula. Unfortunately, the current formula utilizes an outdated expenditure report, consolidated annual financial statement, and not the most current budget appropriation to the department of education. Thus, while the department of education's need is reflected in new budgets, charter school funding is based on outdated figures and is unable to accommodate new costs.

The legislature finds that the state constitution clearly indicates that the State shall provide for a statewide system of public schools including physical facilities. However, charter schools do not receive any separate allocation or appropriation for their facilities. While the federal government has created special matching grants for charter school facilities, on an eight to one basis, these grants require that the states establish per pupil facilities allocations. Consequently, Hawaii's charter schools have been unable to access these funds.

As reported, in recent years, by the department of accounting and general services, an average of $50,000,000 is appropriated each fiscal year for the repair and maintenance of public schools in order to prevent an increase in the backlog of projects. Additionally, approximately one hundred eighty thousand students are enrolled in public schools. By dividing this annual repair and maintenance appropriation figure by the enrollment figure, it can be determined that the department of education spends approximately $300 per pupil for the most basic level of repair and maintenance. Consequently, it would seem appropriate for the State to allot a comparable amount to new century charter schools to be used as they see fit for their facilities.

A survey of the nation's charter schools demonstrates that many states provide facilities maintenance funding and assistance to charter schools. In California, a lease aid funding program in low-income areas provides up to $750 per pupil while Florida makes annual payments of up to $1,266 per pupil for facilities cost. Meanwhile, New York, North Carolina, South Carolina, Wyoming, Alaska, and Delaware all have programs that allow for the use of vacant school or state facilities and land for charter schools.

The legislature further finds that state agencies commonly have access to the use of state land and facilities. Accordingly, charter schools deserve the same access to these resources as other state entities.

The purpose of this Act is to provide charter schools with a separate per pupil allocation for charter school facilities and allow charter schools access to state land and facilities.

SECTION 2. Chapter 302A, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

"§302A-   New century charter schools; access to state land and facilities. The State may offer the use of state land and facilities to new century charter schools."

SECTION 3. Section 302A-1185, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

"§302A-1185 New century charter schools; funding. (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:

The legislature shall make an appropriation based upon the budget request; provided that the legislature may make additional appropriations for collective bargaining increases for charter school employee members of collective bargaining units, fringe 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."

SECTION 4. 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 $          , or so much thereof as may be necessary for fiscal year 2006-2007, for the per pupil facilities allocation to charter schools.

SECTION 5. The sums appropriated shall be expended by the department of education 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 on July 1, 2005.