Report Title:

Federal Impact Aid; Excess; Department of Education

 

Description:

Requires roll-over of federal impact aid and US department of defense funds into current fiscal year accounts. Requires legislative appropriation of all federal Department of Defense and impact aid funds. Requires semiannual reports of the amounts received and expenditures made from these federal funds within each fiscal year to be submitted by DOE to the legislature. Repeals the Governor's authority to authorize DOE to expend these federal funds. (SB2097 HD2)

THE SENATE

S.B. NO.

2097

TWENTY-FIRST LEGISLATURE, 2002

S.D. 2

STATE OF HAWAII

H.D. 2


 

A BILL FOR AN ACT

 

relating to federal impact aid.

 

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

SECTION 1. Section 29-25, Hawaii Revised Statutes, is amended to read as follows:

"[[]§29-25[]] Department of education; federal funds; general fund offset. (a) Federal impact aid, U.S. Department of Defense funds, and federal indirect overhead reimbursements received by the department of education shall not be returned to the general fund.

[(b) If the amount of federal impact aid and U.S. Department of Defense funds received by the department of education exceeds the authorized appropriation in the general appropriations act or the supplemental appropriations act, then the governor shall:

(1) Allow the department of education to increase the federal fund expenditure ceiling for all program identification numbers, each by an amount proportionate to its portion of the total general fund appropriation made by the legislature, and by the amount that the federal impact aid and U.S. Department of Defense funds received by the department of education exceeds the authorized appropriation in the general appropriations act or the supplemental appropriations act; and

(2) Allow the department of education to retain the full amount of the general fund offset created by increased impact aid receipts; provided that the department shall not use the general fund offset to create new programs or expand existing programs.

(c) The department of education shall submit a report to the legislature, not fewer than twenty days prior to the convening of each regular session, concerning the exact amount and specific nature of federal impact aid, U.S. Department of Defense funds, and federal indirect overhead reimbursements received under this section."]

SECTION 2. Section 40-89, Hawaii Revised Statutes, is amended to read as follows:

"[[]§40-89[]] Prior year accounts. (a) The comptroller shall establish new accounts for all special and revolving funds on July 1 of each fiscal year. All unencumbered cash balances for special and revolving funds established in previous years shall be deposited in the appropriate account for the current fiscal year unless otherwise provided by law; provided that this section shall not apply to those funds which are designated by either the legislature or the director of finance for transfer to the general fund.

(b) The comptroller shall establish new accounts for all federal impact aid and U.S. Department of Defense funds received by the department of education on July 1 of each fiscal year and close out all accounts for previous fiscal years. All unencumbered cash balances in accounts for federal impact aid and U. S. Department of Defense funds established in previous fiscal years shall not lapse but shall be deposited into the appropriate account for the current fiscal year; provided that this section shall not apply to those funds that are designated by either the legislature or the director of finance for transfer to the general fund."

SECTION 3. Section 302A-1401, Hawaii Revised Statutes, is amended to read as follows:

"[[]§302A-1401[]] Administration and use of federal funds, including pregrade education. (a) The board, designated as the administrators of such funds as may be allotted to the State under federal legislation for public educational purposes, subject to such limitations as may be imposed by congressional action, shall use and expend the funds:

(1) To improve the program of the public schools of the State, including any grades up to the fourteenth grade or such lower grade as shall be prescribed as a maximum for such purposes by the Act of Congress concerned, by expanding the educational offerings, particularly in the rural districts;

(2) For the payment of salaries to teachers;

(3) To employ additional teachers to relieve overcrowded classes;

(4) To adjust the salaries of teachers to meet the increased cost of living, within such limits as may be fixed by, and pursuant to, state law;

(5) To provide for the purchase of supplies, apparatus, and materials for the public schools; and

(6) For any of such purposes and to such extent as shall be permitted by the Acts of Congress concerned.

(b) Any law to the contrary notwithstanding, no federal impact aid or U.S. Department of Defense funds received by the department of education shall be expended except through legislative appropriation. The board of education shall submit semiannual reports to the legislature, to include:

(1) The exact amounts of federal impact aid and U.S. Department of Defense funds received;

(2) The federal fiscal year in which the funds were appropriated, and the date on which the funds were received by the department;

(3) An itemization of the actual amounts expended and purposes of such expenditures; and

(4) The balance remaining in the federal impact aid and U.S. Department of Defense accounts at the end of each state fiscal year.

The semiannual reports shall be submitted to the legislature by January 31 for the period ending December 31 and by July 31 for the period ending June 30.

[(b)] (c) The board shall organize and conduct a program of public pregrade education to the extent that funds provided therefor by the United States government are, or from time to time may become, available. In establishing and carrying on the pregrade education, any such federal funds shall be expended during any school year as nearly as practicable in each of the school supervisory districts of the State in the proportion that the number of inhabitants of each district of less than six years of age bears to the total number of the inhabitants of the entire State within the age limits, as shown by the latest report of the department of health preceding the opening of the school year."

SECTION 4. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 5. This Act shall take effect on July 1, 2020.