STAND. COM. REP. NO. 407

Honolulu, Hawaii

RE:    S.B. No. 466

       S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Twenty-Ninth State Legislature

Regular Session of 2017

State of Hawaii

Sir:

     Your Committee on Education, to which was referred S.B. No. 466 entitled:

"A BILL FOR AN ACT RELATING TO THE PER-PUPIL FUNDING SYSTEM FOR PUBLIC CHARTER SCHOOLS,"

begs leave to report as follows:

     The purpose and intent of this measure is to require the Legislative Reference Bureau to conduct a study of the non-facility general fund per-pupil funding system for public charter schools, to determine whether the system fulfills its statutory purpose of equalizing operational funding among the State's public schools.

     Your Committee received testimony in support of this measure from the Office of Hawaiian Affairs, State Public Charter School Commission, Hawaii State Teachers Association, Hawaii Public Charter School Network, Kamehameha Schools, Hālau Kū Māna Public Charter School, Kona Pacific Public Charter School, IMUAlliance, and twenty-one individuals.  Your Committee received comments on this measure from the Legislative Reference Bureau.

     Your Committee finds that public charter schools in Hawaii receive a majority of their funding through a general per-pupil allotment.  Your Committee further finds that the per-pupil allotment is intended to provide equal funding to public charter schools as compared to Department of Education schools.  Your Committee additionally finds that questions have been raised regarding whether or not the per-pupil allotment achieves its purpose of providing equal funding, and whether a disparity in per-pupil funding exists.  This measure will mandate a study, conducted by the Legislative Reference Bureau, to assess whether the per-pupil allotment system provides for equal operational funding for public charter schools as compared to Department of Education schools.

     Your Committee has amended this measure by:

     (1)  Requiring the Department of Education and the State Public Charter School Commission to jointly designate the data that the Department and Commission will provide to the Legislative Reference Bureau;

     (2)  Exempting fringe benefit costs from the study;

     (3)  Authorizing the Legislative Reference Bureau to enter contracts for services, exempt from the requirements of chapter 103D, Hawaii Revised Statutes, to conduct the study;

     (4)  Adding language appropriating $50,000 to the Legislative Reference Bureau to contract for services to conduct the study; and

     (5)  Making technical, nonsubstantive amendments for the purposes of clarity and consistency.

     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. 466, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 466, S.D. 1, and be referred to your Committee on Ways and Means.

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

________________________________

MICHELLE N. KIDANI, Chair