STAND. COM. REP. NO. 424

Honolulu, Hawaii

RE: S.B. No. 856

Honorable Ronald D. Kouchi

President of the Senate

Thirtieth State Legislature

Regular Session of 2019

State of Hawaii

Sir:

Your Committees on Education and Government Operations, to which was referred S.B. No. 856 entitled:

"A BILL FOR AN ACT RELATING TO THE DEPARTMENT OF EDUCATION,"

beg leave to report as follows:

The purpose and intent of this measure is to require the Auditor to perform a financial and management audit of the Department of Education, Superintendent of Education, Board of Education, and complex areas every three years.

Your Committees received testimony in support of this measure from the Chamber of Commerce Hawaii, Maui Chamber of Commerce, and one individual. Your Committees received testimony in opposition to this measure from the Hawaii State Teachers Association. Your Committees received comments on this measure from the Department of Education and Office of the Auditor.

Your Committees find that there is a greater need for fiscal transparency of the Department of Education. For example, with a reported backlog of over $800,000,000 for repair and maintenance projects, an audit of the Department of Education every three years would allow the State and public to see what progress is being made and how monies are being used. While there are audits and reviews of certain processes in various Department of Education offices, this measure adds further accountability to ensure that resources are used effectively and efficiently.

As affirmed by the records of votes of the members of your Committees on Education and Government Operations that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 856 and recommend that it pass Second Reading and be referred to your Committee on Ways and Means.

Respectfully submitted on behalf of the members of the Committees on Education and Government Operations,

________________________________ LAURA H. THIELEN, Chair

________________________________ MICHELLE N. KIDANI, Chair