SB2402

Report Title:

Federal Funds for Education; Administrative Expenses

 

Description:

Disallows utilization of federal funds received by the department of education for the administrative expenses of the board or department of education. Specifies that all funds should be spent at the school level.

THE SENATE	S.B. NO.	2402
TWENTY-FIRST LEGISLATURE, 2002
STATE OF HAWAII

A BILL FOR AN ACT

 

relating to federal funds.

 

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

SECTION 1. The legislature finds that public schools are continually challenged by the lack of financial resources. Federal funds in the form of federal impact aid, U.S. Department of Defense funds, and indirect overhead reimbursements are provided to the department of education every year. However, a substantial portion of these funds are expended on administrative costs of the board and department of education rather than directly complementing individual school budgets. The purpose of this Act is to direct all federal impact aid funds to the school level and disallow utilization of federal funds received by the department of education for the administrative and related costs of the board or department of education.

SECTION 2. Section 29-25, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

"(a) Federal impact aid, U.S. Department of Defense funds, and federal indirect overhead reimbursements received by the department of education shall not be returned to the general fund. The department of education shall expend all federal impact aid funds at the school level and shall not expend the federal funds received for the administrative expenses of the board or department of education."

SECTION 3. New statutory material is underscored.

SECTION 4. This Act shall take effect upon its approval.

INTRODUCED BY:	_____________________________