SB2541

SECTION 1. The legislature finds that Hawaii's public school system is a foundational public asset that is facing significant challenges. Projections from the Western Interstate Commission for Higher Education indicate that Hawaii is expected to experience the nation's steepest decline in high school graduates over the next sixteen years, with enrollment decreases likely to accelerate.

The legislature further finds that, while statewide public school enrollment today is nearly the same as it was in 1961, the number of schools has increased by approximately twenty per cent. Decades of enrollment growth led to the construction of new campuses, but the recent and continuing decline in student numbers has left many facilities underutilized. This imbalance has created operational inefficiencies and diverted resources that could otherwise be used to support student learning or modernize facilities in high-need areas. The legislature also finds that prior efforts to consolidate or close schools have often been slow, inconsistent, and subject to political delay. In light of declining enrollment, potential reductions in federal funding, and the State's need for fiscal prudence, a proactive and data-driven process is required to optimize the public school system for the twenty-first century. The legislature finds that the federal Base Realignment and Closure process provides a proven and effective model for making complex and politically sensitive infrastructure decisions. By establishing an independent commission and requiring an "all‑or‑nothing" vote on its recommendations, the Base Realignment and Closure model ensures that decisions are guided by objective data and the overall public interest rather than localized political pressures.

The purpose of this Act is to establish a temporary, independent public school realignment and closure commission to review the State's public school facilities and recommend a comprehensive package of consolidations, realignments, or closures for an expedited, up-or-down approval process by the governor and the legislature.

SECTION 2. (a) There is established a temporary public school realignment and closure commission to be placed within the department of accounting and general services for administrative purposes only.

For purposes of this Act, "commission" means the public school realignment and closure commission established by this Act.

(b) The commission shall consist of nine members appointed for a term to expire upon the dissolution of the commission as provided in this Act. The members shall comprise:

(1) Three members appointed by the governor without regard to section 26-34, Hawaii Revised Statutes;

(2) Three members appointed by the president of the senate; and

(3) Three members appointed by the speaker of the house of representatives.

(c) Appointees shall have expertise in one or more of the following fields: public finance, urban planning, real estate, education administration, or facilities management. No person who is a current elected official; registered lobbyist; or member or employee of the department of education, board of education, school facilities authority, or school facilities authority board shall be eligible to serve on the commission.

(d) The commission shall elect a chairperson from its members. The members shall serve without compensation but shall be reimbursed for expenses, including travel expenses, necessary for the performance of their duties.

(e) The department of accounting and general services shall provide to the commission any administrative support it deems necessary to fulfill the duties of the commission.

(f) The commission shall:

(1) Develop and adopt, after public hearings, a comprehensive and objective set of criteria to be used in evaluating public school facilities for potential consolidation, realignment, or closure. These criteria shall include:

(A) The facility's:

(i) Current and projected student enrollment data;

(ii) Condition, including any deferred maintenance backlogs or capital improvement needs;

(iii) Annual operational costs and cost per pupil; and

(iv) Building capacity and utilization rates;

(B) The geographic proximity and capacity of other schools in the area;

(D) Equity considerations, including the impact of a potential consolidation, realignment, or closure on students from disadvantaged communities.

(2) Request and receive from the department of education, school facilities authority, and any other state or county agency any data necessary to conduct its evaluation;

(3) Conduct a statewide review of public school facilities based on the criteria adopted pursuant to paragraph (1); and

(4) Prepare and submit to the legislature and governor, no later than October 1, 2027, a final report containing a single, comprehensive list of recommendations for the consolidation, realignment, or closure of specific public schools. The report shall include a detailed justification for each recommendation based on the adopted criteria and an estimate of the net savings and costs associated with each recommendation.

(g) The commission shall be subject to chapter 92, Hawaii Revised Statutes.

(h) No later than November 15, 2027, the governor shall:

(1) Approve or disapprove the commission's report in its entirety, without amendment; or

(2) Transmit the report, if approved, to the legislature for final consideration.

If the governor does not approve or disapprove the report by the deadline, the report shall be deemed approved and shall be transmitted to the legislature for final consideration.

(i) If the governor disapproves the report, it shall be returned to the commission with the reasons for disapproval, and the commission may submit a revised report to the governor no later than December 15, 2027. No later than January 1, 2028, the governor shall:

(1) Approve or disapprove the revised report in its entirety, without amendment; or

(2) Transmit the revised report, if approved, to the legislature for final consideration.

If the governor does not approve or disapprove the revised report by the deadline, the revised report shall be deemed approved and shall be transmitted to the legislature for final consideration. If the governor disapproves the revised report, the process shall be terminated, and the commission shall take no further action.

(j) If the governor approves the commission's original or revised report, the legislature shall vote on a concurrent resolution during the regular session of 2028 to either approve or disapprove the report in its entirety, without amendment.

(k) If a concurrent resolution for approval is adopted by the legislature, or if the legislature fails to adopt a concurrent resolution for disapproval by the adjournment sine die of the regular session of 2028, the recommendations in the report shall be binding and shall be implemented by the board of education and department of education.

SECTION 4. (a) The board of education and department of education shall take all necessary actions to implement the commission's approved recommendations no later than July 1, 2028.

(b) Jurisdiction and control over any real property of a school closed pursuant to this Act shall be transferred to the school facilities authority for disposition. Any proceeds from the sale or lease of the property shall be deposited into the school facilities special fund established under section 302A‑1706, Hawaii Revised Statutes.

SECTION 5. The public school realignment and closure commission shall cease to exist on June 30, 2028.

SECTION 6. There is appropriated out of the general revenues of the State of Hawaii the sum of $100,000 or so much thereof as may be necessary for fiscal year 2026-2027 for the operational costs of the public school realignment and closure commission.

The sum appropriated shall be expended by the department of accounting and general services for the purposes of this Act.

SECTION 7. This Act shall take effect upon its approval; provided that section 6 shall take effect on July 1, 2026.

INTRODUCED BY:

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THE SENATE	S.B. NO.	2541
THIRTY-THIRD LEGISLATURE, 2026
STATE OF HAWAII