STAND. COM. REP. NO. 345

Honolulu, Hawaii

RE: S.B. No. 494

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Third State Legislature

Regular Session of 2025

State of Hawaii

Sir:

Your Committee on Education, to which was referred S.B. No. 494 entitled:

"A BILL FOR AN ACT RELATING TO CHARTER SCHOOLS,"

begs leave to report as follows:

The purpose and intent of this measure is to:

(1) Require the Department of Budget and Finance, in collaboration with the Auditor, to conduct a financial audit of each charter school operating in the State;

(2) Require a report to the Legislature; and

(3) Appropriate funds.

Your Committee received testimony in support of this measure from one individual.

Your Committee received testimony in opposition to this measure from one individual.

Your Committee received comments on this measure from the State Public Charter School Commission, Office of the Auditor, Department of Budget and Finance, and Hawaii Public Charter Schools Network.

Your Committee finds that the State's charter schools use public funding to support daily expenses and operational costs. Therefore, ensuring accountability is necessary to effective school operations and high achievement outcomes for students. Accordingly, this measure ensures operational efficiency of charter school operations while providing a high quality education to Hawaii's children.

Your Committee has amended this measure by inserting an effective date of July 1, 2050, to encourage further discussion.

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. 494, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 494, 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,

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MICHELLE N. KIDANI, Chair