STAND. COM. REP. NO. 2851

Honolulu, Hawaii

RE: S.B. No. 2391

S.D. 2

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Third State Legislature

Regular Session of 2026

State of Hawaii

Sir:

Your Committee on Ways and Means, to which was referred S.B. No. 2391, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO EDUCATION,"

begs leave to report as follows:

The purpose and intent of this measure is to require an annual increment or longevity step pay increase for certain public school and charter school teachers, if negotiated into an applicable collective bargaining agreement.

Your Committee received written comments in support of this measure from Keonepoko Elementary School, Department of Education Leilehua–Mililani–Waialua Complex Area, Department of Education Hilo-Waiakea Complex Area, Hawaii State Teachers Association, Democratic Party of Hawaii Education Caucus, Teach for America Hawaii, The Democratic Party of Hawaii, Oahu HSTA-Retired Teachers, and numerous individuals.

Your Committee received written comments in opposition to this measure from the Department of Budget and Finance, Office of Collective Bargaining, and one individual.

Your Committee received written comments on this measure from the Department of Education, Department of Education West Hawaii Complex Area, Department of the Attorney General, State Public Charter School Commission, United Public Workers, and four individuals.

Your Committee finds that, as drafted, the measure would conflict with the provisions of chapter 89, Hawaii Revised Statutes, requiring that wages, including annual increment and longevity step pay increases, be subject to negotiation through collective bargaining.

Accordingly, your Committee has amended this measure to be consistent with chapter 89, Hawaii Revised Statutes, by:

(1) Requiring that any collective bargaining agreement providing for an annual increment or longevity step pay increase requiring the expenditure of public funds be subject to a specific appropriation by the Legislature; and

(2) Authorizing the Legislature to reject a collective bargaining agreement by declining to appropriate the moneys necessary to implement the collective bargaining agreement.

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. 2391, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 2391, S.D. 2.

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

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DONOVAN M. DELA CRUZ, Chair