STAND. COM. REP. NO. 848

Honolulu, Hawaii

RE:    S.B. No. 496

       S.D. 2

Honorable Colleen Hanabusa

President of the Senate

Twenty-Fifth State Legislature

Regular Session of 2009

State of Hawaii

Madam:

     Your Committee on Ways and Means, to which was referred S.B. No. 496, S.D. 1, entitled:

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

begs leave to report as follows:

     The purpose of this measure is to clarify the functions, duties, and roles of the Charter School Review Panel and the Board of Education in the administration and operation of charter schools.

     Specifically, this measure:

(1)  Requires a charter school board to comply with Board of Education policies and Department of Education directives regarding special education and federal programs;

(2)  Clarifies that the Charter School Review Panel is subject to the requirements of the sunshine law;

(3)  Authorizes the Board of Education to remove a Charter School Review Panel member for cause;

(4)  Requires the Charter School Review Panel to approve the charter schools budget, capital improvement projects, and recommendations to allocate non-per-pupil facilities funds to charter schools with facilities needs;

(5)  Specifies the duties of the Executive Director of the Charter School Administrative Office with regard to the preparation of the budget;

(6)  Changes the requirements for the per-pupil funding, and reduces the amount the Department of Education may retain for administrative costs from charter schools federal funds; and

(7)  Requires the Charter School Review Panel to evaluate a charter school on its fourth anniversary and every five years after.

     Your Committee finds that additional reform is necessary to allow charter schools to continue to strive for excellence through effective and efficient operations.

     Your Committee has amended this measure by:

(1)  Clarifying that the budget request submitted by the charter schools shall include all anticipated means of financing;

(2)  Deleting the requirement that the charter schools' budget request for facilities funding include funding for actual enrollment figures in the current school year for each charter school;

(3)  Clarifying that the budget request shall include funding for the projected enrollment for each charter school is for the next school year;

(4)  Clarifying that the salary of the executive director and staff shall not exceed two per cent of the total annual general fund allocation, at an amount to be determined by the panel;

(5)  Clarifying the meaning of the phrase "per-pupil amount";

(6)  Deleting the requirement that fringe benefit costs paid directly by a charter school to a payroll system provider be reimbursed by the Department of Budget and Finance; and

(7)  Changing the effective date from July 1, 2045, to July 1, 2050, to promote continuing discussion; and

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

     As affirmed by the record of votes of the members of your Committee on Ways and Means that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 496, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 496, S.D. 2.

Respectfully submitted on behalf of the members of the Committee on Ways and Means,

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DONNA MERCADO KIM, Chair