REPORT TITLE:
Federal Impact Aid; Education


DESCRIPTION:
Prohibits federal impact aid received by the DOE from being
returned to the general fund unless legislature, by concurrent
resolution, approves the return of the aid to the general fund.
Allows excess federal impact aid to be spent by the DOE for the
purposes of the school-based budgeting program-EDN 100.

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                        
THE SENATE                              S.B. NO.           2474
TWENTIETH LEGISLATURE, 2000                                
STATE OF HAWAII                                            
                                                             
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                   A  BILL  FOR  AN  ACT

RELATING TO FEDERAL AID.



BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

 1      SECTION 1.  Chapter 29, Hawaii Revised Statutes, is amended
 
 2 by adding two new sections to be appropriately designated and to
 
 3 read as follows:
 
 4      "�29-     Federal fund reimbursements.  (a)  Except as
 
 5 otherwise provided by law, or except as prohibited by specific
 
 6 grant conditions, all federal fund reimbursements received by
 
 7 state programs shall be returned to the general fund, or other
 
 8 appropriate program fund.
 
 9      (b)  The governor shall submit a report to the legislature
 
10 concerning the exact amount and specific nature of federal fund
 
11 reimbursements returned to the general fund pursuant to
 
12 subsection (a).  The governor shall submit the report to the
 
13 legislature not less than twenty days prior to the convening of
 
14 each regular session.
 
15      (c)  Federal impact aid received by the department of
 
16 education shall not be returned to the general fund in accordance
 
17 with subsection (a) unless the legislature, by concurrent
 
18 resolution, approves the return of the federal impact aid to the
 
19 general fund during any regular or special session next following
 

 
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 1 the receipt of the federal impact aid.
 
 2      �29-     Federal impact aid; general fund offset.  Except as
 
 3 provided in section 29-   (c), if the amount of federal impact
 
 4 aid received by the department of education exceeds the
 
 5 authorized appropriation in the General Appropriations Act or the
 
 6 Supplemental Appropriations Act, then the governor shall:
 
 7      (1)  Allow the department of education to increase the
 
 8           federal fund expenditure ceiling for EDN 100, school-
 
 9           based budgeting, by the amount that the federal impact
 
10           aid received by the department of education exceeds the
 
11           authorized appropriation in the General Appropriations
 
12           Act or the Supplemental Appropriations Act; and
 
13      (2)  Allow the department of education to retain the full
 
14           amount of the general fund offset created by increased
 
15           impact aid receipts to further carry out the purposes
 
16           of EDN 100, school-based budgeting; provided that the
 
17           department shall not use the general fund offset to
 
18           create new programs or expand existing programs."
 
19      SECTION 2.  If any provision of this Act, or the application
 
20 thereof to any person or circumstance is held invalid, the
 
21 invalidity does not affect other provisions or applications of
 
22 the Act which can be given effect without the invalid provision
 

 
 
 
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                                     S.B. NO.           2474
                                                        
                                                        

 
 1 or application, and to this end the provisions of this Act are
 
 2 severable.
 
 3      SECTION 3.  It is the intent of this Act not to jeopardize
 
 4 the receipt of any federal aid nor to impair the obligation of
 
 5 the State or any agency thereof to the holders of any bond issued
 
 6 by the State or by any such agency, and to the extent, and only
 
 7 to the extent, necessary to effectuate this intent, the governor
 
 8 may modify the strict provisions of this Act, but shall promptly
 
 9 report any such modification with reasons therefor to the
 
10 legislature at its next session thereafter for review by the
 
11 legislature.
 
12      SECTION 4.  New statutory material is underscored.
 
13      SECTION 5.  This Act shall take effect upon its approval.
 
14 
 
15                           INTRODUCED BY:_________________________