STAND. COM. REP. NO. 3598

Honolulu, Hawaii

RE: S.C.R. No. 154

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Third State Legislature

Regular Session of 2026

State of Hawaii

Sir:

Your Committee on Education, to which was referred S.C.R. No. 154 entitled:

"SENATE CONCURRENT RESOLUTION URGING THE DEPARTMENT OF EDUCATION TO ADD TAX INSTRUCTION TO ITS FINANCIAL LITERACY GRADUATION REQUIREMENT,"

begs leave to report as follows:

The purpose and intent of this measure is to urge the Department of Education to add tax instruction to its financial literacy graduation requirement.

Your Committee received testimony in support of this measure from one individual.

Your Committee received comments on this measure from the Department of Education.

Your Committee finds that financial literacy is essential to long-term student success outside the classroom. In particular, many students lack adequate knowledge of critical concepts required for successful completion and filing of income tax documents, which will likely be a necessary process for all students at some point in their futures. The absence of knowledge on taxation and other important financial topics puts students at a significant disadvantage both before and after graduation. The Department of Education has adopted financial literacy graduation requirements for students graduating in 2030. However, it is necessary to ensure that the Department of Education includes tax instruction in its financial literacy graduation requirement so that students in the State have access to essential knowledge for future financial success.

Your Committee notes that the graduation requirement adopted by the Department of Education allows for several completion options, including a standalone elective course, embedded financial literacy learning in existing coursework, vetted synchronous or asynchronous programs during a school semester, or an asynchronous summer course. Your Committee is especially concerned with the option for students to complete the requirement via an asynchronous program. While the program may be vetted, asynchronous learning can lead to reduced student engagement, reduced motivation, lower academic performance, and delayed feedback or support. Furthermore, "self-paced" learning tends to demand strong self-discipline and time-management skills and learners who struggle with autonomy may fall behind or procrastinate. Additionally, each financial literacy educational opportunity should meet the Department's standards, which were adopted from the 2021 edition of the National Standards for Personal Finance Education from the Council for Economic Education and Jump$tart Coalition for Personal Financial Literacy. However, variations in students' resources and engagement with virtual programs, and differences in how individual schools and teachers embed financial literacy concepts in existing coursework are likely to produce disparate learning outcomes. Because the purpose of the financial literacy requirement is to ensure that students obtain and retain the education necessary to empower them with the knowledge to help understand financial concepts, your Committee again urges the Department of Education to implement a requirement for a robust, standalone financial literacy course, including tax instruction, that tracks completion as a measure of success to fully and properly prepare students for their financial futures.

Your Committee has amended this measure by making technical, nonsubstantive amendments for the purposes of clarity and consistency.

As affirmed by the record of votes of the members of your Committee on Education that is attached to this report, your Committee concurs with the intent and purpose of S.C.R. No. 154, as amended herein, and recommends its adoption in the form attached hereto as S.C.R. No. 154, S.D. 1.

Respectfully submitted on behalf of the members of the Committee on Education,

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DONNA MERCADO KIM, Chair