Report Title:

Department of Education; Business Managers

Description:

Makes appropriation to the Department of Education to hire one business manager for each of fifteen complexes.

THE SENATE	S.B. NO.	861
TWENTY-FOURTH LEGISLATURE, 2007
STATE OF HAWAII

A BILL FOR AN ACT

MAKING AN APPROPRIATION FOR BUSINESS MANAGERS FOR THE DEPARTMENT OF EDUCATION.

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

     SECTION 1.  Act 151, Session Laws of Hawaii 2006, made an appropriation to the department of education to establish one full-time permanent assistant superintendent position within the superintendent's office to perform the functions of a chief financial officer.  Justification for the position is stated in section 1 of Act 151 as follows:

          With its multimillion-dollar annual budget, large consumer base, and wide-reaching impact, the State of Hawaii department of education is much like a large corporation.  In these modern times, most successful corporations are operated through the leadership and management of individuals who lend their expertise to steer businesses on the best possible course.  Corporations employ chief financial officers, for example, to effectively manage their budgets and finances.  These officers play a critical role in determining business goals and the ability to meet them by maximizing resources and ensuring efficient operations from a financial perspective.

          It is only reasonable that an institution as important as the department of education--one that nurtures the future of our children and state-–be operated as would a successful corporation, under the guidance of a chief financial officer to work hand-in-hand with the superintendent.

     The legislature finds that effective and efficient financial controls can only be realized by school-level accountability for how public moneys are spent.  The recent Auditor Report No. 06-06, September 2006, Management Audit of Kailua High School, emphasizes the point by stating in pertinent part:

          While school leadership focuses on education improvement, however, school management and administrative oversight are being shortchanged.  The leaders struggle with the business aspects of running a school, with the principal relying almost exclusively on clerical business office staff to manage its $10 million operations and $2 inventory.  And while our audit findings for one school cannot be extrapolated to all schools, the deficiencies evident at Kailua High suggest that other Hawai'i schools may be similarly unprepared to shoulder the additional responsibility of Act 51. (from Summary of Overview)

     The legislature finds that full implementation of the intent of Act 151, Session Laws of Hawaii 2006, requires that each school complex be staffed with a business manager to assist the chief financial officer.  

     The purpose of this Act is make an appropriation to create a business manager position in each school complex.

     SECTION 2.  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 2007-2008, and the same sum, or so much thereof as may be necessary for fiscal year 2008-2009, for the establishment of one full-time equivalent (1.00 FTE) permanent business manager for each of the fifteen school complexes to perform the functions of managing the business aspects of each school within the complex and such other responsibilities as the chief financial officer deems appropriate.

     SECTION 3.  The sums appropriated shall be expended by the department of education for the purposes of this Act.

     SECTION 4.  This Act shall take effect on July 1, 2007.

INTRODUCED BY:

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