STAND. COM. REP. NO. 3475

Honolulu, Hawaii

RE:    H.B. No. 2524

       H.D. 1

       S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Twenty-Eighth State Legislature

Regular Session of 2016

State of Hawaii

Sir:

     Your Committees on Ways and Means and Judiciary and Labor, to which was referred H.B. No. 2524, H.D. 1, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO TEACHER INCENTIVES,"

beg leave to report as follows:

     The purpose and intent of this measure is to address the payment of incentives and other bonuses for teachers at public charter schools.

     Specifically, this measure:

(1)  Prohibits paying for teacher incentive programs, bonuses, and other required compensation beyond regular wages out of a public charter school's facilities funding or per-pupil funds; and

(2)  Requires that, beginning with the 2017-2018 fiscal year, the funding request for teacher incentive programs, bonuses, and other required compensation beyond regular wages shall be a separate line item in the general appropriations act and supplemental appropriations act.

     Your Committees received written comments in support of this measure from the Office of Hawaiian Affairs, State Public Charter School Commission, Hawaii State Teachers Association, and one individual.

     Your Committees received written comments in opposition to this measure from the Department of Budget and Finance.

     Your Committees find that the Department of Education maintains a fund to pay incentive bonuses for teachers at Department of Education schools.  However, public charter schools do not have a corresponding fund and must pay the bonuses out of facilities funding or per-pupil funds.  This places an additional burden on public charter schools and is especially onerous on small charter schools and those in hard-to-fill areas.  Your Committees also find that requiring that bonuses for teachers at public charter schools be paid from an allocation that is separate from the charter schools' facilities funding and per-pupil allocation will assist charter schools in paying for mandated incentives to attract quality educators.

     Your Committees request the Hawaii State Public Charter School Commission to determine the appropriation amount that the Commission believes will be necessary to effectuate the purposes of this measure.

     As affirmed by the records of votes of the members of your Committees on Ways and Means and Judiciary and Labor that are attached to this report, your Committees are in accord with the intent and purpose of H.B. No. 2524, H.D. 1, S.D. 1, and recommend that it pass Third Reading.

Respectfully submitted on behalf of the members of the Committees on Ways and Means and Judiciary and Labor,

________________________________ GILBERT S.C. KEITH-AGARAN, Chair

________________________________ JILL N. TOKUDA, Chair