Honorable Robert Bunda

President of the Senate

Twenty-Third State Legislature

Regular Session of 2006

State of Hawaii

Sir:

Your Committee on Ways and Means, to which was referred S.B. No. 2718, S.D. 1, entitled:

begs leave to report as follows:

The purpose of this measure is to establish a financial limit on the total per pupil contribution that a nonprofit organization is required to contribute to a new century conversion charter school.

Presently, nonprofit organizations affiliated with new century charter schools must contribute to the school with the Department of Education, on a 4:1 matching basis, with the Department providing the larger share. This open-ended arrangement, however, has resulted in the inability by nonprofit organizations to accurately predict their financial obligations to the school.

This measure would provide nonprofit organizations with defined pupil contribution limits to assist them in stabilizing their financial and strategic plans.

As affirmed by the record of votes of the members of your Committee on Ways and Means that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2718, S.D. 1, and recommends that it pass Third Reading.