STAND. COM. REP. NO. 1704

Honolulu, Hawaii

RE: H.B. No. 613

H.D. 2

S.D. 2

Honorable Ronald D. Kouchi

President of the Senate

Thirty-First State Legislature

Regular Session of 2021

State of Hawaii

Sir:

Your Committee on Ways and Means, to which was referred H.B. No. 613, H.D. 2, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO EDUCATION,"

begs leave to report as follows:

The purpose and intent of this measure is to make an emergency appropriation to offset certain education-related budget reductions.

More specifically, this measure:

(1) Appropriates moneys out of the Elementary and Secondary School Emergency Relief Fund moneys received from the federal government pursuant to the Coronavirus Aid, Relief, and Economic Security Act and the Coronavirus Response and Relief Supplemental Appropriations Act, 2021, for fiscal years 2020-2021, 2021-2022, and 2022-2023 to offset any budget reductions that are identified or proposed by the Department of Education and Governor and that would result in the reduction of certain personnel;

(2) Prohibits the use of any appropriated moneys for any purposes not authorized in this measure;

(3) Requires the Board of Education and Superintendent of Education to certify in writing that:

(A) The Board, Superintendent, and Department of Education agree to certain conditions; and

(B) The moneys shall only be expended for salaries and wages of certain Department of Education officers and employees; and

(4) Exempts the appropriated moneys from section 37-41.5, Hawaii Revised Statutes, which permits the Department of Education to retain up to five percent of any appropriation.

Your Committee received written comments in support of this measure from the Hawaii State Teachers Association, HE‘E Coalition, and two individuals.

Your Committee received written comments in opposition to this measure from the Hawaii Government Employees Association.

Your Committee received written comments on this measure from the Board of Education, Department of Budget and Finance, and Department of Education.

Your Committee finds that classroom teachers and school staff have considerable influence and impact on the lives of students, and that students significantly benefit from quality in classroom instruction. Your Committee believes that the appropriations made in this measure are necessary to maintain quality instruction at the school level.

Your Committee has amended this measure by:

(1) Correcting a reference to sections 315 and 317 of the Coronavirus Response and Relief Supplemental Appropriations Act, 2021;

(2) Deleting a provision that addressed the date by which moneys appropriated pursuant to part II of this measure shall lapse, in order to clarify that any unencumbered moneys appropriated for fiscal year 2020-2021 shall lapse on June 30, 2021;

(3) Changing the appropriations for fiscal years 2021-2022 and 2022-2023 from $104,175,932 to an unspecified amount;

(4) Clarifying that the Department of Education employees whose salaries and wages shall be paid by the moneys appropriated pursuant to part III of this measure are limited to those employees who are employed at the school level in the classroom;

(5) Changing the effective date for part II of the measure to May 1, 2050, to facilitate further discussion on the measure; and

(6) Making technical nonsubstantive changes for purposes of clarity, consistency, 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 H.B. No. 613, H.D. 2, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as H.B. No. 613, H.D. 2, S.D. 2.

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

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DONOVAN M. DELA CRUZ, Chair