SB1136 SD1

PART I

SECTION 1. The legislature finds that pursuant to Act 51, Session Laws of Hawaii 2004, as amended, (Act 51, as amended), the weighted student formula was established to provide more equity in funding for public schools through the use of weighted characteristics affecting the relative cost of educating each student attending a public school. Act 51, as amended, also established the committee on weights to develop a weighted student formula based upon student characteristics, assign specific weights for the characteristics, identify what funds are included in the weighted student formula allocation, and perform any other functions necessary for the implementation of the weighted student formula.

After the committee on weights I made its recommendations to the board of education and a weighted student formula was established in 2005, it became clear that many small and rural schools would be severely and adversely affected upon full implementation. Therefore, it became necessary for the legislature to appropriate additional funds to the public schools to off-set monetary deficits resulting from the transition to the weighted student formula. Section 2 of Act 51, as amended, authorized supplementary allocations for this type of assistance.

The legislature continues to support and is committed to the objectives and goals of Act 51, as amended, but is mindful that the implementation of the weighted student formula must continue to be refined to appropriately and equitably address the needs of all students and schools. As great care was taken to evaluate, develop, and implement the weighted student formula approach, equal care and consideration must be invested in fashioning an improved method for providing appropriate funding to the schools.

The legislature further finds that the schools that appear to suffer the most under the weighted student formula fall into certain categories, such as schools with smaller student enrollment, geographically isolated schools, schools with a large number of transient students or non-English proficient students, or a combination of these. Therefore, although these characteristics may already be taken into consideration under the weighted student formula, adequate funds have not been available to compensate for these disadvantages. Additional compensation based on these factors may also be necessary to prevent certain schools from suffering devastating consequences.

The legislature believes schools in these categories that suffer adverse impacts under the weighted student formula must be provided a means for positively ensuring they can and will continue to function in the immediate future and thereafter.

The purpose of this part is to augment the weighted student formula allocations to bring funding of negatively impacted schools closer to adequacy.

SECTION 2. There is appropriated out of the general revenues of the State of Hawaii the sum of $18,849,300, 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, to augment funds provided under weighted student formula allocations for the educational needs of the following students on a per student basis as follows:

(1) Students in junior kindergarten classes

with fifteen or fewer students

6000 students at $1,165/student $6,990,000

(2) Students in geographically isolated schools

1884 students at $100/student $188,400

(3) Students in multitrack schools

5700 students at $150/student $855,000

(4) Transient students

16,246 students at $200/student $3,249,200

(5) Students in small schools

Oahu: 16,665 students at $0/student $0

Neighbor islands:

15,667 students at $100/student $1,566,700

(6) Non-English proficient students

4000 students at $1500/student $6,000,000

The sums appropriated shall be expended by the department of education for the purposes of this part.

PART II

SECTION 3. The legislature finds that the board of education, in 2002, approved the superintendent's proposal to establish complex areas, headed by complex area superintendents and comprised of two or more school complexes. Each school complex consists of a high school and the intermediate or middle and elementary schools that feed into it. The establishment of complex areas allows each administrator to focus on the needs of the supporting schools and school complexes to provide better supervision and support.

The legislature believes that the establishment of complex areas provides the opportunity for the more efficient management of funds and personnel among schools and school complexes contained therein. The allocation of resources within a complex area could also prove highly cost-effective. More autonomy in the management of complex areas can yield beneficial results for the students, staff, and administrators. For these types of reasons, greater discretion for the allocation of resources should lie with the complex area superintendents.

The purpose of this part is to:

(1) Authorize complex area superintendents to allocate resources within the complex area to achieve efficiency and cost-effectiveness; and

(2) Appropriate funds for complex area superintendents to allocate resources at the complex level to provide complex area superintendents increased control over underutilized or inefficiently utilized resources.

SECTION 4. Chapter 302A, Hawaii Revised Statutes, is amended by adding a new section to part IV to be appropriately designated and to read as follows:

"§302A- Complex area superintendent; authority. A complex area superintendent shall support the delivery of administrative and instructional support services within the complex area superintendent's complex area, including:

(1) Personnel, fiscal, and facilities support;

(2) Monitoring of compliance with applicable state and federal laws; and

(3) Curriculum development, student assessment, and staff development services.

A complex area superintendent may allocate resources at the complex level among the schools within the complex area superintendent's jurisdiction when operationally efficient, cost-effective, and educationally sound, including the allocation of moneys and positions for complex level educational officers, teachers, and support staff."

SECTION 5. Section 302A-604, Hawaii Revised Statutes, is amended to read as follows:

"§302A-604 Complex area superintendents. The superintendent of education, with the approval of the board, shall appoint complex area superintendents for schools. [~~The complex area superintendents shall supervise the delivery of administrative and instructional support services within their respective complex areas, including:~~

~~(1)~~ ~~Personnel, fiscal, and facilities support;~~

~~(2)~~ ~~Monitoring of compliance with applicable state and federal laws; and~~

~~(3)~~ ~~Curriculum development, student assessment, and staff development services.~~]"

SECTION 6. 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 2008-2009, for allocating resources among the schools within the complex area superintendent's jurisdiction pursuant to this part; provided that funds shall be provided at a rate of $30 per student and may be used for any appropriate purpose including arts education, physical education, and learning materials; provided further that funds provided shall be in addition to weighted student formula allocations.

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

PART III

SECTION 7. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 8. This Act shall take effect on July 1, 2007; provided that part II of this Act shall take effect on July 1, 2008.

THE SENATE	S.B. NO.	1136
TWENTY-FOURTH LEGISLATURE, 2007		S.D. 1
STATE OF HAWAII