REPORT TITLE:
Education budget


DESCRIPTION:
Authorizes the DOE to retain and expend a portion of all indirect
overhead reimbursements for discretionary grants.  Establishes a
federal grants search and application revolving fund.  Provides
the DOE with autonomy over the administration of its trust funds.
Prohibits federal impact aid received by the DOE from being
returned to the general fund.  Allows excess federal impact aid
to be spent by the DOE for the purposes of the school-based
budgeting program-EDN 100.  (SD1)

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                        1873
HOUSE OF REPRESENTATIVES                H.B. NO.           H.D. 2
TWENTIETH LEGISLATURE, 2000                                S.D. 1
STATE OF HAWAII                                            
                                                             
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                   A  BILL  FOR  AN  ACT

RELATING TO EDUCATION.



BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

 1      SECTION 1.  Chapter 29, Hawaii Revised Statutes, is amended
 
 2 by adding a new section to be appropriately designated and to
 
 3 read as follows:
 
 4      "§29-     Department of education; federal impact aid;
 
 5 general fund offset.  (a)  Federal impact aid, federal department
 
 6 of defense funds, and federal indirect overhead reimbursements
 
 7 received by the Hawaii department of education shall not be
 
 8 returned to the general fund.
 
 9      (b)  If the amount of federal impact aid and federal
 
10 department of defense funds received by the Hawaii department of
 
11 education exceeds the authorized appropriation in the General
 
12 Appropriations Act or the Supplemental Appropriations Act, then
 
13 the governor shall:
 
14      (1)  Allow the department of education to increase the
 
15           federal fund expenditure ceiling for EDN 100, school-
 
16           based budgeting, by the amount that the federal impact
 
17           aid received by the department of education exceeds the
 
18           authorized appropriation in the General Appropriations
 
19           Act or the Supplemental Appropriations Act; and
 

 
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 1      (2)  Allow the department of education to retain the full
 
 2           amount of the general fund offset created by increased
 
 3           impact aid receipts to further carry out the purposes
 
 4           of EDN 100, school-based budgeting; provided that the
 
 5           department shall not use the general fund offset to
 
 6           create new programs or expand existing programs.
 
 7      (c)  The department of education shall submit a report to
 
 8 the legislature, not less than twenty days prior to the convening
 
 9 of each regular session, concerning the exact amount and specific
 
10 nature of federal impact aid, federal department of defense
 
11 funds, and federal indirect overhead reimbursements received
 
12 under this section."
 
13      SECTION 2.  Chapter 302A, Hawaii Revised Statutes, is
 
14 amended by adding three new sections to be appropriately
 
15 designated and to read as follows:
 
16      "§302A-    Federal indirect overhead reimbursements.  (a)
 
17 The department may retain and expend federal indirect overhead
 
18 reimbursements for discretionary grants in excess of the
 
19 negotiated rate for such reimbursements as determined by the
 
20 director of finance and the superintendent.
 
21      (b)  The department shall prepare an annual report as
 
22 prescribed by the director of finance on the amount of indirect
 
23 overhead moneys retained and expended and submit the report to
 

 
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                                     H.B. NO.           H.D. 2
                                                        S.D. 1
                                                        

 
 1 the legislature.  The annual report shall include a breakdown of
 
 2 all operating expenses.
 
 3      §302A-    Federal grants search and application revolving
 
 4 fund.  (a)  There is established a federal grants search and
 
 5 application revolving fund into which shall be deposited the
 
 6 department's share of federal indirect overhead reimbursements,
 
 7 pursuant to section 302A-  .  Unless otherwise provided by law,
 
 8 all other receipts shall immediately be deposited to the credit
 
 9 of the general fund of the State.  The department may expend
 
10 funds in the federal grants search and application revolving fund
 
11 to search for discretionary grants and develop program
 
12 applications to secure additional revenues for the department.
 
13 Moneys in the revolving fund may be expended for consultant
 
14 services and operational expenses, including the creation and
 
15 hiring of temporary staff.
 
16      (b)  The department shall prepare and submit an annual
 
17 report on the status of the federal grants search and application
 
18 revolving fund to the legislature.  The annual report shall
 
19 include but not be limited to a list of the grant applications to
 
20 the federal agencies and the grant awards received.
 
21      §302A-    Appropriations for trust funds of the department
 
22 of education.  Notwithstanding any other law to the contrary, in
 
23 any fiscal year, if the amount of revenues deposited into a trust
 

 
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 1 fund of the department of education exceeds the amount
 
 2 appropriated from that fund for that year, the superintendent may
 
 3 approve expenditures in excess of the amount appropriated, up to
 
 4 the amount by which revenues for that fund exceed the
 
 5 appropriations from that fund for a fiscal year; provided that
 
 6 the department shall submit annually a report to the governor and
 
 7 the legislature of all expenditures in excess of each fund's
 
 8 appropriation for each fiscal year."
 
 9      SECTION 3.  There is appropriated out of the federal grants
 
10 search and application revolving fund the sum of $          , or
 
11 so much thereof as may be necessary for fiscal year 2000-2001, to
 
12 the department of education to carry out the purposes of this
 
13 Act, including the creation and hiring of necessary staff.  The
 
14 sum appropriated shall be expended by the department of
 
15 education.
 
16      SECTION 4.  If any provision of this Act, or the application
 
17 thereof to any person or circumstance is held invalid, the
 
18 invalidity does not affect other provisions or applications of
 
19 the Act which can be given effect without the invalid provision
 
20 or application, and to this end the provisions of this Act are
 
21 severable.
 
22      SECTION 5.  It is the intent of this Act not to jeopardize
 
23 the receipt of any federal aid nor to impair the obligation of
 

 
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                                     H.B. NO.           H.D. 2
                                                        S.D. 1
                                                        

 
 1 the State or any agency thereof to the holders of any bond issued
 
 2 by the State or by any such agency, and to the extent, and only
 
 3 to the extent, necessary to effectuate this intent, the governor
 
 4 may modify the strict provisions of this Act, but shall promptly
 
 5 report any such modification with reasons therefor to the
 
 6 legislature at its next session thereafter for review by the
 
 7 legislature.
 
 8      SECTION 6.  New statutory material is underscored.
 
 9      SECTION 7.  This Act shall take effect upon its approval.