HB1875

Report Title:

BOE; Public Schools; Taxation; Budgeting; Deficit Spending

 

Description:

Proposes constitutional amendments to give the board of education exclusive jurisdiction over the internal structure, management and operation of the public school system, the power to levy taxes, and the power to incur deficits.

HOUSE OF REPRESENTATIVES	H.B. NO.	1875
TWENTY-FIRST LEGISLATURE, 2002
STATE OF HAWAII

A BILL FOR AN ACT

 

relating to education.

 

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

SECTION 1. The purpose of this Act is to propose an amendment to article VII, sections 5, 7, 8, and 9 and article X, section 3, of the Constitution of the State of Hawaii to give the board of education exclusive jurisdiction over the internal structure, management and operation of the public school system, the power to levy taxes, and the power to incur deficits.

SECTION 2. Article X, section 3, of the Constitution of the State of Hawaii is amended to read as follows:

"POWER OF THE BOARD OF EDUCATION

Section 3. The board of education shall have the power[, as provided by law,] to formulate statewide educational policy [and appoint the superintendent of education as the chief executive officer of the public school system.], levy taxes and incur deficits as provided by law and exercise control over the public school system through its chief executive officer, the superintendent of education, who shall be appointed by the board. The board shall also have exclusive jurisdiction over the internal structure, management and operation of the public school system. This section shall not limit the power of the legislature to enact laws of statewide concern. The legislature shall have the exclusive jurisdiction to identify laws of statewide concern."

SECTION 3. Article VII, section 5, of the Constitution of the State of Hawaii is amended to read as follows:

"EXPENDITURE CONTROLS

Section 5. Provision for the control of the rate of expenditures of appropriated state moneys, and for the reduction of such expenditures under prescribed conditions, shall be made by law.

No public money shall be expended except pursuant to appropriations made by law. General fund expenditures for any fiscal year shall not exceed the State's current general fund revenues and unencumbered cash balances, except when the governor or the board of education publicly declares the public health, safety or welfare is threatened as provided by law."

SECTION 4. Article VII, section 7, of the Constitution of the State of Hawaii is amended to read as follows:

"COUNCIL ON REVENUES

Section 7. There shall be established by law a council on revenues which shall prepare revenue estimates of the state government and shall report the estimates to the governor [and], the legislature and the board of education at times provided by law. The estimates shall be considered by the governor in preparing the budget, recommending appropriations and revenues and controlling expenditures. The estimates shall be considered by the legislature in appropriating funds and enacting revenue measures. All revenue estimates submitted by the council to the governor [and], the legislature and the board of education shall be made public. If the legislature in appropriating funds or if the governor in preparing the budget or recommending appropriations exceeds estimated revenues due to proposed expenditures, this fact shall be made public including the reasons therefor."

SECTION 5. Article VII, section 8, of the Constitution of the State of Hawaii is amended to read as follows:

"THE BUDGET

Section 8. Within such time prior to the opening of each regular session in an odd-numbered year as may be provided by law, the governor shall submit to the legislature a budget in a form provided by law setting forth a complete plan of proposed expenditures of the executive branch, estimates as provided by law of the aggregate expenditures of the judicial and legislative branches, [and] anticipated receipts of the State and expected deficits of the board of education based on the board's proposed expenditures and anticipated receipts, for the ensuing fiscal biennium, together with such other information as the legislature may require. A complete plan of proposed expenditures of the judicial branch for the ensuing fiscal biennium shall be submitted by the chief justice to the legislature in a form and within such time prior to the opening of each regular session in an odd-numbered year as shall be provided by law. The budget prepared by the governor and the plan of proposed expenditures prepared by the chief justice shall also be submitted in bill form. The governor shall also, upon the opening of each such session, submit bills to provide for such proposed expenditures, including expected deficits of the board of education, and for any recommended additional revenues or borrowings by which the proposed expenditures, including expected deficits of the board of education, are to be met. The proposed general fund expenditures in the plan of proposed expenditures, including estimates of the aggregate expenditures of the judicial and legislative branches[,] and expected deficits of the board of education, submitted by the governor shall not exceed the general fund expenditure ceiling established by the legislature under section 9 of this article; provided that proposed general fund expenditures in the plan may exceed such ceiling if [the]:

(1) The governor sets forth the dollar amount and the rate by which the ceiling will be exceeded and the reasons therefor[.]; or

(2) The board of education publicly declares the public health, safety or welfare is threatened as provided by section 5."

SECTION 6. Article VII, section 9, of the Constitution of the State of Hawaii is amended to read as follows:

"LEGISLATIVE APPROPRIATIONS; PROCEDURES;

EXPENDITURE CEILING

Section 9. In each regular session in an odd-numbered year, the legislature shall transmit to the governor an appropriation bill or bills providing for the anticipated total expenditures of the State, including expected deficits of the board of education, for the ensuing fiscal biennium. In such session, no appropriation bill, except bills recommended by the governor for immediate passage, or to cover the expenses of the legislature, shall be passed on final reading until the bill authorizing operating expenditures for the ensuing fiscal biennium, to be known as the general appropriations bill, shall have been transmitted to the governor.

In each regular session in an even-numbered year, at such time as may be provided by law, the governor may submit to the legislature a bill to amend any appropriation for operating expenditures of the current fiscal biennium, to be known as the supplemental appropriations bill, and bills to amend any appropriations for capital expenditures of the current fiscal biennium, and at the same time the governor shall submit a bill or bills to provide for any added revenues or borrowings that such amendments may require. In each regular session in an even-numbered year, bills may be introduced in the legislature to amend any appropriation act or bond authorization act of the current fiscal biennium or prior fiscal periods. In any such session in which the legislature submits to the governor a supplemental appropriations bill, no other appropriation bill, except bills recommended by the governor for immediate passage, or to cover the expenses of the legislature, shall be passed on final reading until such supplemental appropriations bill shall have been transmitted to the governor.

GENERAL FUND EXPENDITURE CEILING

Notwithstanding any other provision to the contrary, the legislature shall establish a general fund expenditure ceiling which shall limit the rate of growth of general fund appropriations, excluding federal funds received by the general fund, to the estimated rate of growth of the State's economy as provided by law. No appropriations in excess of such ceiling shall be authorized during any legislative session unless the legislature shall, by a two-thirds vote of the members to which each house of the legislature is entitled, set forth the dollar amount and the rate by which the ceiling will be exceeded and the reasons therefor."

SECTION 7. The question to be printed on the ballot shall be as follows:

"Shall the board of education be given exclusive jurisdiction over the internal structure, management and operation of the public school system, the power to levy taxes, and the power to incur deficits?"

SECTION 8. Constitutional material to be repealed is bracketed and stricken. New constitutional material is underscored.

SECTION 9. This amendment shall take effect upon compliance with article XVII, section 3, of the Constitution of the State of Hawaii.

INTRODUCED BY:	_____________________________