1. 1 Department of Education Summary of H.B. No. 500, H.D.1, S.D.1, C.D.1 Operating Budget and Capital Improvement Program Fiscal Biennium 2007-09

2. 2 Budget Status: June 13, 2007 Legislature adjourned on May 3, 2007 H.B. No. 500, H.D.1, S.D.1, C.D.1 is at the Governor’s Office for action. Governor has until June 25, 2007 to notify the Legislature of any intent to veto, and has until July 10, 2007, to sign bills into law.

3. 3 Department of Education Operating Budget Fiscal Biennium 2007-09

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5. 5 Board of Education General Fund Operating Budget Requests vs. Funding FY 2007-08 (Excluding Fixed Costs) ($ millions) BOE-Approved Budget Requests BOE Request FY 2007-08 HB 500, CD1 FY 2007-08 Shortfalls $ 32.1 $ 29.0 Weighted Student Formula 29.3 0.9 WSF Recurring Items in Act 160/06 21.0 21.2 NCLB / Restructuring / School Redesign 12.3 8.7 Other Student Needs 1.6 1.1 Infrastructure / Technology 10.4 7.3 Equipment / Facilities 3.9 Enrollment 4.0 4.3 Risk Management 1.2 Continuation of Specific Appropriations 3.9 2.5 Transfers 5.7 5.4 Total $ 125.4 $ 88.7

6. 6 Details of Board of Education Request Shortfalls FY 2007-08 ($ millions) Description BOE Request FY 2007-08 HB 500, CD1 FY 2007-08 Food Services $ 14.9 $ 12.3 Student Transportation10.0 Maintenance Services Contracts4.0 Electricity1.61.4 Workers Compensation1.61.3 TOTAL Shortfalls Request $ 32.1 $ 29.0

7. 7 Details of Board of Education Request Weighted Student Formula FY 2007-08 ($ millions) Description BOE Request FY 2007-08 HB 500, CD1 FY 2007-08 Conversion of VPs to 12-month schedule (2 mos salary) $ 8.6 $ ---- Begin replacement of classroom equipment statewide20.0--- Increase hourly pay for classroom cleaners and adult lunch supervisors to $8.00/hr 0.70.9 TOTAL Weighted Student Formula (WSF) Request $ 29.3 $ 0.9 Description BOE Request FY 2007-08 HB 500, CD1 FY 2007-08 Restoration of recurring items in Act 160/06 ($20M additional funds for WSF; $1M Superintendent’s fund)$ 21.0 $ 21.2

8. 8 Details of Board of Education Request NCLB / Restructuring / School Redesign FY 2007-08 ($ millions) Description BOE Request FY 2007-08 HB 500, CD1 FY 2007-08 Additional services for schools restructuring under NCLB $ 6.0 $ 5.0 Student assessment, accountability2.92.1 Secondary School Redesign1.8--- ESLL and Hawaiian Language Immersion Program test development and testing 1.6 TOTAL NCLB / Restructuring / School Redesign $ 12.3 $ 8.7

9. 9 Details of Board of Education Request Other Student Needs FY 2007-08 ($ millions) Description BOE Request FY 2007-08 HB 500, CD1 FY 2007-08 Educational Interpreters for mainstream deaf students $ 0.5 Newcomer Centers for new ELL students0.4--- Athletic Trainers0.3 Treatment for drug-addicted youths0.2 House parents/supplies for Hawaii Center for the Deaf and the Blind 0.1 Rounding 0.1--- TOTAL Other Student Needs $ 1.6 $ 1.1

10. 10 Details of Board of Education Request Infrastructure / Technology (page 1 of 2) FY 2007-08 ($ millions) Description BOE Request FY 2007-08 HB 500, CD1 FY 2007-08 Integrated student services data management system eCSSS $ 1.6 Business Manager positions for schools1.3 Wide Area Network upgrade; centralized help desk1.0 Conversion of data to eSIS, further customization1.0 New System Monitoring & Compliance Section0.7--- Sewer and water charges0.8 New Financial Management System0.7 Para-Educator training and Mentor programs0.50.3 Training/Recruitment of teachers for students with visual impairments and orientation & mobility needs 0.5--- Masters in Education Teaching program0.5---

11. 11 Details of Board of Education Request Infrastructure / Technology (page 2 of 2) FY 2007-08 ($ millions) Description BOE Request FY 2007-08 HB 500, CD1 FY 2007-08 Vehicle replacement for Facilities Maintenance crews0.30.2 Charter School Review Panel (Act 298/06)0.30.05 Rental of office space0.2--- Maintenance of video conference equipment0.2 National Board Certified Teacher differentials/reimbursement0.2--- SEA Office for Public Charter Schools Program0.2--- Teach for America contract fees0.2--- School Food Authority operating costs0.1 Positions for Accounting Section0.1 TOTAL Infrastructure / Technology $ 10.4 $ 7.3

12. 12 Details of Board of Education Request Equipment / Facilities FY 2007-08 ($ millions) Description BOE Request FY 2007-08 HB 500, CD1 FY 2007-08 Equipment for new school facilities from CIP projects $ 2.8 Furniture for new school facilities from CIP projects0.1 Facilities Asset Management Plan1.0 TOTAL Equipment / Facilities $ 3.9

13. 13 Details of Board of Education Request Budget Adjustments for Enrollment FY 2007-08 ($ millions) Description BOE Request FY 2007-08 HB 500, CD1 FY 2007-08 Additional special education teachers and educational assistants for increase in special education pre-school students $ 4.0 $ 4.3 Reduction in regular education teacher FTEs due to decline in enrollment projection 0.0 TOTAL Budget Adjustments for Enrollment $ 4.0 $ 4.3

14. 14 Details of Board of Education Request Other General Fund Items FY 2007-08 ($ millions) Description BOE Request FY 2007-08 HB 500, CD1 FY 2007-08 Risk management$ 1.2 Continuation of specific appropriations3.92.5 Transfers Artist in the Schools to SFCA-0.2 School Health Aides from DOH5.6 Infrastructure for School Health Aides0.3--- Subtotal transfers 5.75.4 TOTAL Other General Fund Items $ 10.8 $ 9.1

15. 15 Continuation of Previous Session Acts Short Description BOE Request ($ millions) HB 500 ($ millions) Continue Act 310/06, Developing and implementing articulated and aligned standards-based curriculum. $ 1.0 $ -- Continue Acts 70/05 and 263/06 increasing pay for call substitute teachers in SY 2005-06 and SY 2006-07. 0.8 Continuation of funding in Act 281/06 for non-school hour programs for children or youth enrolled in school. 0.8 0.4 Continue Act 233/06: Vocational Agriculture education. 0.08 Comply with Act 259/06: Early learning educational task force attached to DOE; support task force to develop a 5-year plan; support Jr. Kindergarten implementation; expand Families for R.E.A.L. program. 1.0 Continue Act 159/05: Conversion of 0.5 FTE temporary Educational Specialist position to permanent. -- Continue Act 151/06: Chief Financial Officer / secretary 0.2 Continue Act 96/06: Energy coordinator position. 0.05 Total Continuation of Previous Session Acts (rounded) $ 3.9 $ 2.5

16. 16 Grants and Purchase of Service Contracts Operating Fund Grants FY 2007-08 FY 2008-09 Frank Delima Student Enrichment Program $120,000 $ - Hawaii County Economic Opportunity Council (includes LAMP and DOP) 552,227 - Hawaii High School Athletic Association 150,000 - Hui Malama Learning Center 150,000 - Moanalua Gardens Foundation 300,000 - Ohana Care 50,000 - Read to Me International Foundation 100,000 - Hawaii 3R's 460,000 Purchase of Service Contracts Hale O'Ulu 230,377 Pacific and Asian Affairs Council 47,609 Special Olympics 128,925 CIP Grants Malama Learning Center 275,000 - Children's Discovery Center, Oahu 125,000 - KCAA Preschools of Hawaii 250,000 - Total Grants and Purchase of Service Contracts$ 2,939,138 $ 866,611

17. 17 Operating Budget Summary for the Department of Education FY 2007-08 ($ millions) Funding Sources Current FY 2006-07 Appropriation Gov/B&F Changes * H.B. 500, CD1 BOE Request Funding FY 2007-08 Total General Fund $ 1,867.3$ 57.6$ 88.7 $ 2,013.6 Federal and Other Funds 318.3 10.84.0 333.1 Total $ 2,185.6 $ 68.4$ 92.7 $ 2,346.7 * General Fund "Changes" include: Collective Bargaining Increases $97.1 M Deletion of WSF Transition (21.0 M) Deletion of Non-Recurring Costs (28.9 M) Deletion of Grants (1.6 M) Increase in Fringe, Debt Service 12.0 M Total of General Fund “Changes” $57.6 M

18. 18 Operating Budget Summary for the Department of Education FY 2008-09 ($ millions) Funding Sources: Current FY 2006-07 Appropriation Gov/B&F Changes * H.B. 500, CD1 BOE Request Funding FY 2008-09 Total General Fund $ 1,867.3 $ 82.9 $ 92.0 $ 2,042.2 Federal and Other Funds 318.3 10.8 6.2 335.3 Total $ 2,185.6 $ 93.7 $ 98.2 $ 2,377.5 *General Fund "Changes" include: Collective Bargaining Increases $97.1 M Deletion of WSF Transition (21.0 M) Deletion of non-recurring costs (28.9 M) Deletion of Grants (1.6 M) Increase in Fringe and Debt Service 37.3 M Total of General Fund “Changes” $82.9 M

19. 19 Department of Education New EDNs for Fringe Benefits and Debt Service Costs Fiscal Biennium 07-09 New EDNsDescription FY 2007-08 EDN 915Debt Service 226,612,463 EDN 943Health Benefits (EUTF) 167,498,112 EDN 941Pension Accumulation 140,089,459 EDN 941Social Security/Medicare 77,798,468 TOTAL $611,998,502 New EDNsDescription FY 2008-09 EDN 915Debt Service 239,861,260 EDN 943Health Benefits (EUTF) 177,398,618 EDN 941Pension Accumulation 141,464,436 EDN 941Social Security/Medicare 78,560,893 TOTAL $637,285,207 Note: The same numbering sequences have been established in the budgets of the Department of Budget and Finance, and the University of Hawaii.

20. 20 Required Reports to 2008 Legislature Amount of Funding HB 500 Section Purpose of Funds Required Report to Legislature Minimum of $100,000 each year Section 67 Part of the Superintendent’s fund for transition to weighted student formula is to be provided to elementary schools who model full inclusion special education programs Expenditures made by elementary schools who model full inclusion special education programs $5,000,000 each year Section 68 Restructuring schools under No Child Left Behind requirements Evaluations from each educational consultant assigned to each school on progress of No Child Left Behind restructuring; spending per school for NCLB Restructuring $1,566,220 (FY 2007- 08); $769,468 (FY 2008-09) Section 73 Electronic comprehensive student support system (eCSSS) The progress and status of the implementation of the eCSSS and the need for contracted services for this project

21. 21 Required Reports to 2008 Legislature Amount of Funding HB 500 Section Purpose of Funds Required Report to Legislature $999,964 (FY 2007-08); $1,000,774 (FY 2008-09) Section 75 Electronic student information system (eSIS) The progress and status of the implementation of eSIS $250,000 each year Section 76 Recruitment and retention support center to support the mentor program, para-educator training program Detailed report identifying the program expenditures $12,358,139 (FY 2007-08); $13,118,345 (FY 2008-09) Section 77 School food services Cost saving measures for school food services $9,991,030 (FY 2007-08); $14,029,731 (FY 2008-09) Section 78 Student transportation Yearly projections on revenues and expenditures as well as cost saving measures being implemented for student transportation

22. 22 Required Reports to 2008 Legislature Amount of Funding HB 500 Section Purpose of Funds Required Report to Legislature $1,365,962 (FY 2007-08); $3,182,543 (FY 2008-09) Section 79 (1) Increased electricity costs Current and projected usage as well as current and projected costs of electricity, sewer, and water services $655,000 (FY 2007-08); $840,000 (FY 2008-09) Section 79 (2) Increased sewer charges $148,429 (FY 2007-08); $352,322 (FY 2008-09) Section 79 (3) Increased water charges $49,048 (both years) Section 80 Energy coordinator position Summary of the various energy efficiency projects and the corresponding change in energy usage as a result of these projects

23. 23 Required Reports to 2008 Legislature Amount of Funding HB 500 Section Purpose of Funds Required Report to Legislature $400,000 (both years) Section 81 Hawaii 3R’s grant Progress report None cited; the report is due to the Legislature within 10 days of each use of the provision Section 191 (this is a provision applying to all departments) Expenditure of funds to fill any position not authorized by the Legislature Authority used to establish the position; date the position was established; projected date the position will be filled; amounts projected to be expended in FY 2007-08 and FY 2008-09; source of funds used to pay for the position; functions to be performed by the position

24. 24 Department of Education Capital Improvement Program (CIP) Fiscal Biennium 2007-09

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26. 26 Department of Education Capital Improvement Program (CIP) FY 2007-08 Highlights ($ millions)

27. 27 Department of Education Capital Improvement Program (CIP) FY 2008-09 Highlights ($ millions)