STAND. COM. REP. NO. 2096

Honolulu, Hawaii

RE:    S.B. No. 3186

       S.D. 1

Honorable Colleen Hanabusa

President of the Senate

Twenty-Fourth State Legislature

Regular Session of 2008

State of Hawaii

Madam:

     Your Committee on Education, to which was referred S.B. No. 3186 entitled:

"A BILL FOR AN ACT RELATING TO CHARTER SCHOOLS,"

begs leave to report as follows:

     The purpose of this measure is to establish the Charter School Guarantee Program to enable charter schools to acquire facilities through lease purchase financing agreements.

     This measure also establishes the charter school revolving fund for the financing of lease purchase financing agreements for charter school facilities.

     Testimony in support of the measure was submitted by Kamehameha Schools and Kanu o ka ‘Äina Learning ‘Ohana.  Testimony in opposition of the measure was submitted by the Department of Budget and Finance.

     Your Committee finds that charter schools provide Hawaii's parents and students with valuable choices for obtaining a quality public education in the State.  However, the availability of adequate facilities for charter schools remains an unresolved issue for charter schools throughout the State.  Alternative methods for obtaining adequate facilities must be explored to ensure proper learning environments.  This measure addresses the need for charter school facilities by authorizing charter schools to acquire facilities through lease purchase financing agreements.

     Upon review of the testimony provided, your Committee finds that questions exist regarding the propriety of the Charter School Guarantee Program and the revolving fund established therefor.  However, the issue is one of great import that warrants continued exploration of this or other methods for ensuring the provision of adequate facilities for charter schools.

     Accordingly, your Committee has amended this measure by:

     (1)  Including a necessary appropriation of funds out of the Charter School Revolving Fund;

     (2)  Changing its effective date to July 1, 2050, to facilitate further discussion on the matter; and

     (3)  Making technical, nonsubstantive amendments for purposes of clarity and style.

     As affirmed by the record of votes of the members of your Committee on Education that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 3186, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 3186, S.D. 1, and be referred to the Committee on Ways and Means.

Respectfully submitted on behalf of the members of the Committee on Education,

____________________________

NORMAN SAKAMOTO, Chair