STAND. COM. REP. NO. 3109

Honolulu, Hawaii

RE: S.C.R. No. 92

Honorable Ronald D. Kouchi

President of the Senate

Twenty-Ninth State Legislature

Regular Session of 2018

State of Hawaii

Sir:

Your Committee on Education, to which was referred S.C.R. No. 92 entitled:

"SENATE CONCURRENT RESOLUTION REQUESTING THE DEPARTMENT OF EDUCATION TO SUBMIT A REPORT ON UNUTILIZED, LAPSED FEDERAL GRANT REVENUE FOR PUBLIC EDUCATION,"

begs leave to report as follows:

The purpose and intent of this measure is to request the Department of Education to submit a report to the Legislature on unutilized, lapsed federal grant revenue for public education.

Your Committee received testimony in support of this measure from the Department of Education, Native Hawaiian Education Council, Association of Hawaiian Civic Clubs, and O‘ahu County Committee on Legislative Priorities of the Democratic Party of Hawai‘i.

Your Committee finds that the Department of Education receives federal grants for public education which must be used for specific purposes within specific periods of time or else be returned to the federal government. The Department of Education underwent a financial audit in each of the years 2013 to 2016, and each of these audits revealed that the Department of Education had underutilized over $175,000,000 of federal funding per year. A clear understanding of all federal funds available for public education in Hawaii, including their purposes and expiration dates, is critical to inform decisions regarding the total funding of public education in Hawaii.

As affirmed by the record of votes of the members of your Committee on Education that is attached to this report, your Committee concurs with the intent and purpose of S.C.R. No. 92 and recommends that it be referred to your Committee on Ways and Means.

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

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MICHELLE N. KIDANI, Chair