STAND. COM. REP. NO. 1812

                                 Honolulu, Hawaii
                                                   , 1999

                                 RE: S.B. No. 46
                                     S.D. 2
                                     H.D. 2




Honorable Calvin K.Y. Say
Speaker, House of Representatives
Twentieth State Legislature
Regular Session of 1999
State of Hawaii

Sir:

     Your Committee on Finance, to which was referred S.B. No.
46, S.D. 2, H.D. 1, entitled: 

     "A BILL FOR AN ACT RELATING TO SCHOOL-BASED BUDGETING,"

begs leave to report as follows:

     The purpose of this bill is to provide schools with maximum
flexibility in the expenditure of their operating budget
allocation from the Department of Education (DOE) by:

     (1)  Requiring DOE to provide each school and the
          Legislature, by the opening day of each regular
          legislative session, reports on its proposed school-by-
          school budget allocation;

     (2)  Requiring DOE to submit an annual school-by-school
          budget report;

     (3)  Requiring each school to submit an expenditure report
          to DOE for the previous fiscal year prior to the
          beginning of each school year; and

     (4)  Providing each school with maximum flexibility over the
          funds designated to that school to achieve
          instructional program goals, to the extent allowed for
          each type of funding.


 
 
 
                                 STAND. COM. REP. NO. 1812
                                 Page 2

 
     DOE and the Hawaii State Teachers Association testified in
support of the intent of the bill.

     Your Committee has amended this measure by:

     (1)  Changing the effective date to July 1, 2000; and

     (2)  Making technical, nonsubstantive amendments for style
          and clarity.

     As affirmed by the record of votes of the members of your
Committee on Finance that is attached to this report, your
Committee is in accord with the intent and purpose of S.B. No.
46, S.D. 2, H.D. 1, as amended herein, and recommends that it
pass Third Reading in the form attached hereto as S.B. No. 46,
S.D. 2, H.D. 2.

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



                                   ______________________________
                                   DWIGHT Y. TAKAMINE, Chair