STAND. COM. REP. NO. 715

Honolulu, Hawaii

RE:    S.B. No. 849

       S.D. 2

Honorable Donna Mercado Kim

President of the Senate

Twenty-Eighth State Legislature

Regular Session of 2015

State of Hawaii

Madam:

     Your Committee on Ways and Means, to which was referred S.B. No. 849, S.D. 1, 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 provide for the issuance of general obligation bonds for public charter school facilities and establish a process by which the bond revenues will be allocated to individual public charter schools.

     More specifically, this measure:

(1)  Authorizes the State Public Charter School Commission to request that the Director of Finance issue general obligation bonds to design, plan, construct, repair, and maintain public charter school facilities;

(2)  Establishes a working group to act as an advisory council to determine the criteria for and allocation of the proceeds of general obligation bonds; and

(3)  Requires the State Public Charter School Commission to submit an annual report to the Legislature regarding the charter school selection process and use of the general obligation bond proceeds.

     Your Committee received written comments in support of this measure from the State Public Charter School Commission.  Your Committee received written comments in opposition to this measure from one individual.  The Department of Budget and Finance submitted written comments on the measure.

     Your Committee finds that public charter schools play an important role in Hawaii's education system.  Public charter schools offer students unique learning and experiential opportunities that may not be found at traditional public schools. However, the cost to start a public charter school can be substantial.  Providing financial support for designing, planning, and constructing new public charter schools, and repairing and maintaining existing charter schools, is an investment in Hawaii's future.

     Your Committee has amended this measure by:

(1)  Adding the Assistant Superintendent for School Facilities and Support Services to the working group;

(2)  Requiring the working group to establish procedures and guidelines for the appropriate use, expenditure, and oversight of facility funds; and

(3)  Changing the effective date to July 1, 2050, to facilitate further discussion on the measure.

     As affirmed by the record of votes of the members of your Committee on Ways and Means that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 849, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 849, S.D. 2.

Respectfully submitted on behalf of the members of the Committee on Ways and Means,

________________________________

JILL N. TOKUDA, Chair