STAND. COM. REP. NO. 644

Honolulu, Hawaii

RE:    S.B. No. 746

       S.D. 1

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. 746 entitled:

"A BILL FOR AN ACT RELATING TO EDUCATION,"

begs leave to report as follows:

     The purpose of this measure is to establish a two-year pilot project within a designated complex area in the Department of Education to demonstrate cost efficiencies and savings of complex-wide allocations of funds received by the complex area through the weighted student formula.

     To accomplish the purpose of the pilot project, this measure authorizes the complex area superintendent to reallocate resources within the schools in the complex area to achieve greater efficiency and cost-effectiveness and exempts the designated complex area from any department-wide budget reductions or restrictions during the two-year pilot program.

     Your Committee finds that the reallocation of resources within a complex area could prove to be highly cost-effective and provide more autonomy in the management of complex areas.  The results of the reallocation could be beneficial for students, staff, and administrators.

Your Committee amended this measure by:

(1)  Adding the requirement that the Department of Education report on any deficits in the pilot project;

(2)  Changing the effective date to July 1, 2070 to facilitate continued discussion on this issue; 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 Ways and Means that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 746, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 746, S.D. 1.

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

____________________________

DONNA MERCADO KIM, Chair