Report Title:

Education

Description:

Conditions appropriation to assist with transitional funding for weighted student formula on matching funds from department budget to assist small schools in maintaining financial sustainability.  Imposes additional financial accountability measures upon the department.

HOUSE OF REPRESENTATIVES	H.B. NO.	2644
TWENTY-FOURTH LEGISLATURE, 2008
STATE OF HAWAII

A BILL FOR AN ACT

relating to education.

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

     SECTION 1.  There is appropriated out of the general revenues of the State of Hawaii the sum of $20,000,000 or so much thereof as may be necessary for fiscal year 2008-2009 for the purpose of providing additional transitional funding for the weighted student formula in order to mitigate decreases in school budgets.

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

     SECTION 2.  Moneys appropriated by section 1 of this Act shall only be released when the department of education provides a dollar for dollar match from its own budget and allocates at least half of the matching dollars to assist small schools in maintaining fiscal sustainability.

     SECTION 3.  Section 302A-1301, Hawaii Revised Statutes, is amended to read as follows:

     "B.  Budget

§302A-1301  School system financial accountability.  (a)  Beginning with the 1995-1997 fiscal biennium, the department's administrative expenditures shall not exceed 6.5 per cent of the total department operating budget unless approved by the legislature.

     (b)  Not less than seventy per cent of appropriations for the total budget of the department, excluding debt service and capital improvement programs, shall be expended by principals through the weighted student formula.  Beginning with the budget for fiscal year 2009-2010, the department of education shall shift an additional ten per cent of its appropriations for the total budget of the department, excluding debt service and capital improvement programs, into the weighted student formula in each of the next four fiscal years.  Failure to meet this mandate shall result in all operational funding under program budget items EDN 100 and EDN 150 being shifted into the weighted student formula effective the fiscal year following the failure of the department of education meeting the mandate of this section."

     SECTION 4.  This Act shall take effect on July 1, 2008.

INTRODUCED BY:	_____________________________
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