STAND. COM. REP. NO.154

Honolulu, Hawaii

, 2001

RE: H.B. No. 1302

 

 

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-First State Legislature

Regular Session of 2001

State of Hawaii

Sir:

Your Committee on Education, to which was referred H.B. No. 1302 entitled:

"A BILL FOR AN ACT RELATING TO EDUCATION,"

begs leave to report as follows:

The purpose of this bill is to propose an amendment to the State Constitution that would establish the Department of Education (DOE) as a political subdivision of the State. Under the provisions of this amendment, the DOE would be headed by a Board of Education that would enact ordinances and govern DOE in a similar manner to other political subdivisions of the State. DOE would be allowed to issue general obligation bonds and impose an educational excise tax upon retail sales of tangible personal property. DOE would contract with the Department of Taxation to collect the Education Excise Tax.

The Board of Education (BOE) supported this bill. The Department of Budget and Finance, the Department of Taxation, the Chamber of Commerce of Hawaii, and the Tax Foundation of Hawaii commented on this bill.

Your Committee finds that this bill presents a bold, new approach to governing and funding education in Hawaii. It is very difficult to establish a clear line of accountability in the DOE under the current scheme. This bill proposes a constitutional amendment that would give BOE total fiscal and administrative autonomy. With this autonomy, BOE will be able to focus on the educational needs of Hawaii without being constrained by the fiscal requirements of the rest of the State.

As affirmed by the record of votes of the members of your Committee on Education that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1302 and recommends that it pass Second Reading and be referred to the Committee on Judiciary and Hawaiian Affairs.

 

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

____________________________

KEN ITO, Chair