Honorable Robert Bunda

President of the Senate

Twenty-Third State Legislature

Regular Session of 2005

State of Hawaii

Sir:

Your Committee on Education and Military Affairs, to which was referred S.B. No. 1834 entitled:

begs leave to report as follows:

The purpose of this measure is to restrict the Department of Education from using the minimum annual contribution by a nonprofit organization to reduce, suspend, or offset its normal budgetary allocation to a new century charter school.

Testimony in support of the measure was submitted by Kualapuu Elementary School, Waimea Middle School, Kamehameha Schools, and Hookakoo Corporation. The Department of Education submitted comments.

Your Committee finds that new century conversion charter schools operated and managed by nonprofit organizations receive a $1 match from the nonprofit for every $4 allocated by the charter school administrative office. This measure would clarify that this annual contribution by the nonprofit will not be used to offset the department's normal budgetary allocation. The amendment in this measure is in line with the intent of Act 2, Session Laws of Hawaii 2002, which required the matching funds to be used to enhance the normal state budgetary allocation to the school.

Although the department testified that the amendment is unnecessary, your Committee has amended this measure by changing the effective date to July 1, 2010 to continue the discussion on this issue.

As affirmed by the record of votes of the members of your Committee on Education and Military Affairs that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 1834, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 1834, S.D. 1, and be referred to the Committee on Ways and Means.