REPORT TITLE:
Education budget


DESCRIPTION:
Exempts federal and trust funds of the department of education
from the requirements of the state budgetary allotment system
under sections 37-31 to 37-39, Hawaii Revised Statutes.

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                        1873
HOUSE OF REPRESENTATIVES                H.B. NO.           
TWENTIETH LEGISLATURE, 2000                                
STATE OF HAWAII                                            
                                                             
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                   A  BILL  FOR  AN  ACT

RELATING TO EDUCATION.



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

 1      SECTION.  Oversight over the state budget, including
 
 2 programs funded by general, special, and revolving funds, is the
 
 3 responsibility of the governor and the legislature.  However, the
 
 4 legislature finds that for federally-funded programs, the federal
 
 5 government delegates the responsibility for overseeing federal
 
 6 education grants and entitlements directly to local education
 
 7 agencies (LEAs).  Under these terms, LEAs have sole authority to
 
 8 administer these federal funds.
 
 9      The legislature further finds that in contrast to
 
10 independent control by municipalities or school districts over
 
11 their schools in other state jurisdictions, Hawaii's public
 
12 education system is essentially a centralized system with
 
13 responsibility shared by the legislature, the executive, and the
 
14 board of education.  Therefore, although the department of
 
15 education is the LEA, chapter 37, Hawaii Revised Statutes, allows
 
16 the director of finance ultimate control over all federal funds
 
17 received by the department.
 
18      The legislature believes that transferring authority over
 
19 federal and trust funds to the department of education with
 

 
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                                     H.B. NO.           
                                                        
                                                        

 
 1 regard to its budget will encourage the department to increase
 
 2 and expand its educational partnerships with businesses, civic
 
 3 groups, and philanthropies, and assist the department in
 
 4 broadening its resource base.
 
 5      The purpose of this Act is to exempt federal and trust funds
 
 6 of the department of education from the requirements of the state
 
 7 budgetary allotment system under sections 37-31 to 37-39.
 
 8      SECTION 2.  Chapter 37, Hawaii Revised Statutes, is amended
 
 9 by adding a new section to be appropriated designated and to read
 
10 as follows:
 
11      "37-      Department of education; exception.  (a)  Federal
 
12 funds and trust funds of the department of education shall be
 
13 exempt from the requirements of sections 37-31 to 37-39.
 
14      (b)  When the federal funds and trust funds are greater than
 
15 the appropriation, the superintendent of education, with the
 
16 approval of the board of education and after notice to the
 
17 director of finance, may modify or amend previous allotments of
 
18 federal funds and trust funds.  No more than twenty days after
 
19 notification, the department of education shall submit a report
 
20 to the director of finance identifying the amount and source of
 
21 funds that were modified or amended."
 
22      SECTION 3.  Section 37-32, Hawaii Revised Statutes, is
 
23 amended to read as follows:
 

 
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                                     H.B. NO.           
                                                        
                                                        

 
 1      "37-32  Quarterly allotment periods.  Except as provided in
 
 2 section 37-41.5[,] and section 37-  , no officer, department, or
 
 3 establishment shall expend or be allowed to expend during any
 
 4 fiscal year any sum for any purpose not specifically authorized
 
 5 by the legislature for expenditure during that particular fiscal
 
 6 year, and not made available pursuant to the allotment system
 
 7 provided for in sections 37-31 to 37-41.  For the purposes of the
 
 8 allotment system, each fiscal year shall be divided into four
 
 9 quarterly allotment periods, beginning, respectively, on the
 
10 first days of July, October, January, and April; provided that in
 
11 any case where the quarterly allotment period is impracticable,
 
12 the director of finance may prescribe a different period suited
 
13 to the circumstances, not exceeding six months nor extending
 
14 beyond the end of the fiscal year."
 
15      SECTION 4.  Statutory material to be repealed is bracketed.
 
16 New statutory material is underscored.
 
17      SECTION 5.  This Act shall take effect on July 1, 2000.
 
18 
 
19                           INTRODUCED BY:  _______________________
 

 
 
 
 
 
 
 
 
 
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