STAND. COM. REP. NO. 458

Honolulu, Hawaii

RE: S.B. No. 270

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-First State Legislature

Regular Session of 2021

State of Hawaii

Sir:

Your Committee on Education, to which was referred S.B. No. 270 entitled:

"A BILL FOR AN ACT RELATING TO EDUCATION,"

begs leave to report as follows:

The purpose and intent of this measure is to appropriate monies relating to education.

Prior to the hearing on this measure, your Committee posted and made available for public review a proposed S.D. 1, which deletes the contents of the measure and inserts language to:

(1) Appropriate elementary and secondary school emergency relief fund (ESSER funds) monies received by the State from the Coronavirus Aid, Relief, and Economic Security Act, 2020, Public Law 116-136, and the Coronavirus Response and Relief Supplemental Appropriations Act, 2021, Public Law 116-260, to offset any budget reductions that are identified or proposed by the Department of Education and the Governor that would result in the reduction of personnel who are subject to a collective bargaining agreement and who are employed at the school level, including any budget reduction that results in a layoff, furlough, or pay reduction;

(2) Require the Board of Education and Superintendent of Education to certify in writing that the Board of Education, Superintendent, and Department of Education agree to the conditions established by this measure, including that the funds appropriated shall be used only for salaries and wages of officers and employees who are subject to a collective bargaining agreement and are employed at the school level; and

(3) Provide that monies from the appropriation shall lapse at the end of the fiscal biennium.

Your Committee received testimony in support of the proposed S.D. 1 from the Hawaii State Teachers Association, HE‘E Hui for Excellence in Education, Democratic Party of Hawai‘i Education Caucus, and three individuals. Your Committee received testimony in opposition to the proposed S.D. 1 from one individual. Your Committee received comments on the proposed S.D. 1 from the Department of Education and Board of Education.

Your Committee finds that the states that receive certain federal funds, including monies from the Elementary and Secondary School Emergency Relief Funds established by the Coronavirus Aid, Relief, and Economic Security Act, Public Law 116-136, 2020 (CARES Act), and the Coronavirus Response and Relief Supplemental Appropriations Act, 2021, Public Law 116-260 (CRRSAA), are required to assure that they will maintain support for education programs during fiscal years 2019-2020 and 2020-2021 by meeting certain benchmarks. The State, through the Department of Education, must comply with the provisions of the federal Education Stabilization Fund as set forth in section 18006 of the CARES Act to receive and expend CARES Act and CRRSAA monies, which, in part, requires the Department of Education to continue to pay its employees. This measure will appropriate certain federal monies received by the State to the Department of Education to offset any budget reductions that have been identified or proposed by the Department of Education and the Governor that would result in the reduction of personnel who are subject to a collective bargaining agreement and who are employed at the school level, including any budget reduction that results in a layoff, furlough, or pay reduction.

Your Committee notes that as this measure progresses, your Committee on Ways and Means may consider waiving the requirement for federal Education Stabilization Funds to pay fringe benefit costs to the Department of Budget and Finance.

Your Committee has amended this measure by adopting the proposed S.D. 1 and further amending the measure by:

(1) Clarifying that the Legislature declares that it does not support any attempts by the Superintendent to seek a waiver from the Secretary of Education regardless of whether the State is currently experiencing a precipitous decline in revenue or not;

(2) Inserting a blank appropriation amount for fiscal year 2020-2021; and

(3) 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. 270, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 270, 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