STAND. COM. REP. NO. 90

Honolulu, Hawaii

RE:    S.B. No. 766

       S.D. 1

Honorable Colleen Hanabusa

President of the Senate

Twenty-Fourth State Legislature

Regular Session of 2007

State of Hawaii

Madam:

     Your Committee on Education, to which was referred S.B. No. 766 entitled:

"A BILL FOR AN ACT RELATING TO EDUCATION,"

begs leave to report as follows:

     The purpose of this measure is to recruit and retain qualified teachers for employment at neighbor island public schools through the establishment of a loan forgiveness program.

     Testimony in support of this measure was submitted by the Department of Education, the University of Hawaii, the Hawaii Teacher Standards Board, and one individual.  Testimony in opposition to this measure was submitted by the Department of Budget and Finance and one individual.

     Your Committee finds that qualified teacher recruitment and retention for our public schools is of the utmost importance to providing quality education to our children.  Economics often play a major role in the recruitment and retention of teachers, and the high cost of living in Hawaii only exacerbates the existing teacher shortage problem.  Teaching positions in public schools in geographically isolated locations or hard-to-fill positions in densely populated locations present a particular challenge for the Department of Education.  Alternative incentives to increased salary must be explored to be cost-effective while still ensuring our schools are staffed by qualified teachers.  Your Committee recognizes that the Hawaii Educator Loan Program, administered by the University of Hawaii, was established as a tool for recruiting students to become educators and teach in public schools in the State.  Your Committee believes that the establishment of a similar program geared towards filling hard-to-fill positions throughout the entire State would assist the Department of Education in its recruitment and retention efforts.

     Your Committee recognizes that the Department of Education continues to increasingly be tasked with greater responsibilities and may require the assistance of a financial institution in administering a loan forgiveness program.  Additionally, your Committee recognizes that a schedule for the reduction of loan repayment amounts is also necessary to truly incentivize the program and that the program should be limited to allow participation only while continuing to teach in a hard-to-fill position.

     Accordingly, your Committee has amended this measure by:

     (1)  Expanding its application from teachers who are employed at neighbor island schools to teachers throughout the State who are employed in hard-to-fill positions;

     (2)  Authorizing the Department of Education to contract with a financial institution for the administration of the Educator Loan Forgiveness Program;

     (3)  Creating a loan forgiveness schedule for reduced payments for years one through seven;

     (4)  Limiting participation in loan forgiveness to teachers who continue to teach in hard-to-fill positions; and

     (5)  Making technical, nonsubstantive changes 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. 766, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 766, 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