Name
Organization
Agenda Item
EXCUSED:
None
ALSO PRESENT:
Kyla Musso, Student Representative
Keith Hayashi, Interim Superintendent, Department of Education
Brian Hallett, Assistant Superintendent, Office of Fiscal Services, Department of Education
Alison Kunishige, Executive Director
Kenyon Tam, Board Analyst
Regina Pascua, Executive Secretary
Lady Garrett, Secretary
II. Approval of Meeting Minutes of August 19, 2021
Committee Chairperson Voss called for public testimony on this agenda item.
Susan Pcola-Davis, public, expressed concern that the Department of Education’s (“Department”) information from the prior meetings is not consistent with the current agenda item, noted that the Board should not discuss personnel cuts, and requested further information relating to carryover funds that were not distributed to schools.
Committee Chairperson Voss asked Committee members to review the minutes of the Committee’s August 19, 2021 meeting.
Committee Vice Chairperson Lynn Fallin moved to approve the Committee’s meeting minutes of August 19, 2021. Committee Member Catherine Payne seconded.
Committee Chairperson Voss asked if there were any objections to the motion. No Committee member raised objections, and the motion carried through unanimous consent from all members present (Committee Vice Chairperson Fallin, Committee Members Bill Arakaki, Kili Namauʻu, and Payne).
ACTION: Motion to approve the Finance and Infrastructure Committee meeting minutes of August 19, 2021 (Fallin/Payne). The motion carried through unanimous consent from all members present.
III. Recommendation for Action
Mara Hanson, public, expressed concern about the use of ESSER II and ESSER ARP (collectively, ESSER funds) intended to make schools safer during the ongoing COVID-19 pandemic. She stated that there was no on campus testing last school year and there is no campus testing this year either.
Board Member Kaimana Barcarse, ex officio left the meeting at 10:55 a.m. and returned at 11:00 a.m.
Lani Solomona, Parent/Community Networking Centers (“PCNC”), stated that the PCNC was able to switch to virtual interactions and created trusting relationships with families to affect student achievement outcomes, but there is limited information on moving the program forward and improving efforts. She requested that the Committee dedicate funds to the PCNC initiative.
Susan Pcola-Davis, public, expressed concern that the Department’s current memorandum is not consistent with its previous recommendation, that personnel reductions should not be discussed, and asked what happened to carryover funds that were not distributed to schools.
Cheri Nakamura, HEʻE Coalition, testified in support of approving the funding of Department shortfalls because it is difficult to spend funds of this magnitude in a short amount of time, but she insisted that the Department be more strategic with ESSER funds and leverage processes both academic and non-academic to get the best return on investment.
Dianne Tam, public, testified that as the Board considers releasing federal funds, she would like the Board to consider funding COVID-19 mitigation strategies, like surveillance testing in schools and noted that ESSER ARP funds were not intended to fill the Department’s budget shortfalls.
Mireille Ellsworth, Hawaii for a Safe Return to Schools, stated that the Department is not addressing the social emotional needs of students and should be using the longitudinal data system that already identifies at-risk students.
Committee Chairperson Voss called on Brian Hallett, Assistant Superintendent, Office of Fiscal Services, to present the Department’s recommendation on the priority allocation of ESSER funds.
Hallett provided the Department’s recommendation for the proposed uses of un-programmed balances of $54 million for ESSER II funds and $83 million in ESSER ARP funds for the following purposes: (1) offset the legislative budget cuts to support the implementation of the fiscal year (“FY”) 2021-2022 general fund budget plan; and (2) to address three shortfall areas. He noted that the Department is seeking to maintain its spending plan to avoid running out of funds before the end of the year.
Hallett explained that during its August meeting, the Committee directed the Department to provide additional information for item 4.01 the $100.2 million lump sum of legislative budget cuts, item 4.02 $20.6 million legislative cut to positions and program funding, and item 4.03 $16.5 million for three shortfall items (workers compensation, licensing and maintenance costs for converged networks at schools, and the Aukahi financial management system).
Hallett explained that the Department is asking for the Committee’s consideration to amend item 4.01, to request approval of $24.2 million instead of $100.2 million to give the Department more time to ensure that it needs the $76 million based on further assessment of actual spending and a reassessment of program needs. He also explained that the Department anticipates coming back to the Committee regarding the $76 million request in the months ahead when the Department has more information on actual spending.
Hallett stated that the $24.2 million in item 4.01 will be used for three formula funded programs, $23.4 million to weighted student formula (“WSF”), $719,000 for complex area allocations, and $75,000 for the community school for adults. He further explained that the amendment the Department is seeking is for the approval of $24.2 million for item 4.01, $20.66 million for item 4.02, and $16 million for item 4.03 for a total of $61.4 million.
Hallett outlined that if the Board approves the expenditure of these amounts, the Department would have a balance of $366 million left to program.
Committee Chairperson Voss reiterated that the Department’s request for item 4.01 does not include $76 million so that the Department can determine actual need and that the Department will return to the Committee with an assessment of actual program needs.
Committee Member Payne moved to approve the use of up to $137,364,424 of ESSER II and ESSER ARP funds for the 2021-2022 fiscal year for the proposed uses and amounts outlined in Interim Superintendent Hayashi’s memorandum dated September 16, 2021. Committee Vice Chairperson Fallin seconded.
Committee Chairperson Voss asked the Department to provide clarification on carryover funds and the large amount of carryover (approaching $100 million) at the school level described during previous meetings. He also asked what the Department plans to do to ensure that those funds are appropriately and efficiently spent.
Keith Hayashi, Interim Superintendent, replied that the Department is monitoring carryover funds through the complex area superintendents and shared that as the former principal of Waipahu High School a possible reason for a substantial carryover amount at schools is because the funds are part of a larger plan. He stated that schools who have carryover funds plan to expend those funds at the school level and that carryover amounts are being monitored by complex area superintendents and principals.
Committee Vice Chairperson Fallin stated that monitoring and reporting back on the actual uses of carryover funds is important because it addresses the questions of what is the appropriate use of funding. She asked about the $16 million request for the financial management system and whether the Department can explain the actual impact on schools and how the system will make schools more effective.
Committee Vice Chairperson Fallin noted that the Department provided general descriptions in the attachments, but that it is important to look at the administrative costs and whether these costs are important to schools. She asked the Department if the descriptions can be better framed to help the Committee understand how administrative costs are essential to support schools.
Committee Vice Chairperson Fallin asked, if the Department spends less than what it is requesting, how will the Department update the Committee on any additional money that can be spent at the school level.
Hallett replied that regarding the Aukahi financial management system, the Department included outcome metrics measuring things the system funds would support, but he noted that the Department will rethink and include more specific metrics with the goal of having minimal impact and disruption of school operations.
Committee Vice Chairperson Fallin stated that she understood the value of the financial management system, but explained that part of the challenge is looking at how the Board can strengthen the efficiency of the state level to support schools to make decisions and operate effectively.
Hallett expressed appreciation for Committee Vice Chairperson Fallin’s comments and noted that the Department has high expectations for the Aukahi financial management system going forward. He stated that the Department will reflect on identifying metrics relating to administrative support functions.
Hallett stated that the Department will provide updates on the differences between the amount requested and the actual amount expended for the conversion networks, Aukahi financial management system, and workers compensation. He also stated that schools carried over substantially more money this year because during the last legislative session, there was discussion of the possibility that the Department’s budget would be cut by 10%. Hallett stated that the Department will monitor school spending of the carryover balances. He stated that the Department expects that it will need all of the unallocated $76 million to fund 165 positions. He noted that regarding the three shortfall areas including conversion networks, Aukahi, and workers compensation, he is recommending that the Department provide this information to the Board with the Department’s quarterly report.
Committee Vice Chairperson Fallin asked the Department to share any discussions around sustainability and the long-term budget shortfall strategy. She also asked how much of the approved ESSER Fund allocations will be recurring expenses and whether these amounts be considered shortfalls since the ESSER funds will only be available for a limited time.
Hallett explained that the Department of Budget and Finance (“B&F”) is looking to restore $130 million to the Department with considerations of a three year non-recurring cut to the Department in the B&F financial plan. He also noted B&F’s will detail its financial plan further during the next legislative session and that the Department expects that funds will be restored to its budget in the next biennium. Hallett also stated that the Department will continue discussions with the Board on the supplemental budget request and whether to request the restoration of the $100 million cut from the Department’s budget.
Committee Vice Chairperson Fallin asked how much of the ESSER fund allocation request are recurring costs and detailed the larger issues of how much money the Department has, how much the Department plans on spending, and what are the Department’s long term obligations. She stated that there should be a system to evaluate the effectiveness of the funding. Hallett replied that the Department will need to continue to clarify and deliberate on what to incorporate going forward once the ESSER funds are not available.
Board Member Uemura, ex officio, stated that the Board requested further information from the Department on how the Department is using $137.4 million of ESSER funds, but the information the Department has provided is insufficient. He stated that until the Department provides more detailed information, the Board cannot fulfill its fiduciary responsibility to ensure the ESSER funds are being used as intended. Board Member Uemura, ex officio, expressed concerns about the uses of the ESSER funds, which surfaced during the Student Achievement Committee, when the proposed draft educational plan was presented without any cost analysis. He stated that the educational plan and its successful implementation should be the main use of ESSER funds and it is unclear how much that would cost.
Board Member Uemura, ex officio, stated that the Board must prioritize the use of the ESSER funds. He recommended that the Committee defer decision-making because the Board should not make allocation decisions unless the Department provides the total cost of the educational plan.
Board Member Uemura, ex officio stated that the Department should look at ESSER funds together with legislative funding because it is recommending that the Board approve using ESSER funds to fill shortfalls that may be covered by legislative funding if the state’s economy improves. He asked for more information on how the Department determined that the positions the Department is requesting be funded with ESSER funds are necessary. Board Member Uemura, ex officio, stated that on December 3, 2020, the Committee provided the Department with solutions for the $100.2 million budget reduction. He also expressed concern with $16.5 million for operating cost items and the recurring costs to run the Aukahi financial management system. Board Member Uemura, ex officio noted that the Board should not obligate any more money until the Department provides more information.
Committee Chairperson Voss stated that the scaled back request ($24.2 million instead of $100 million) should only reflect actual bills that need to be paid. He stated that every dollar the Department does not use for shortfalls is another dollar for the educational plan discussed at the SAC meeting to support student learning and remediate learning loss.
Committee Chairperson Voss asked for a brief explanation of each item the Department is requesting the Board approve for this fiscal year. Hallett replied that the Department is seeking Board approval to support and maintain its current expenditure plans. He stated that the Department’s budget website details all of the spending the legislature authorized the Department for this year. Hallett stated that in some areas the amounts will be higher and lower in others, but the Department will not know specifically until the end of the fiscal year, June 30, 2022.
Hallett reiterated the history of the $100 million budget cut (item 4.01), which initially was supposed to be a one-time budget reduction. He stated that the Department’s budget could sustain a $100 million cut that year because schools closed for the fourth quarter in school year 2019-2020 schools, so there were reduced costs. Hallett stated that because the Department assumed it would be able to use ESSER funds to offset this cut, it allocated full WSF amounts to the schools instead of withholding amounts from WSF to cover the $100 million shortfall.
Hallett stated that item 4.02 totals $20.6 million and of that amount, $13.6 million is for payroll and $7 million is for the cuts to the general fund operating costs for the Office of Strategy, Innovation and Performance. He noted that the legislature restored $17 million to this item in the form of federal funds.
Hallett stated that item 4.03 totals $16.5 million that the Department would use to cover two years of workers compensation shortfalls, $5 million for the converged network (with no budget to maintain licenses and maintenance), and $1.5 million for the Aukahi financial management system replacement.
Committee Chairperson Voss asked about 4.02 ($20.6 million) and if expenses were less than projected, whether these funds would be available for other ESSER uses. Hallett confirmed that the remaining balances would be available for other ESSER uses.
Committee Member Arakaki stated that schools need funds because affected employees will be anxious and asked how a deferral of decision-making will impact the Department’s ability to do what needs to be done. He asked about the timeframe for the use of ESSER funds.
Hallett replied that the Department is spending at a rate where it will not have enough money to finish off the fiscal year and recognized that Committee Chairperson Voss stated that the Department should not be put at risk if the Board withholds funds. He stated that the Committee can defer approval and the Department will continue to spend at its current rate, which will exceed allocated resources.
Committee Member Arakaki stated that if the Department does not have enough funds, morale in schools and complex areas will suffer. Hallett expressed appreciation for testimony from the HE‘E Coalition on the challenge that the Department will face in spending ESSER funds.
Board Member Uemura, ex officio, stated that the two things in play are the base budget to take care of school needs and ESSER funds with specific uses. He asked if the Department will be coming back to the Board to request another $137 million for the next fiscal year. Hallett replied that the Department’s August presentation to the Committee detailed option A and option B and that much depends on the Department’s legislative supplemental budget request. He noted that the Department will seek additional ESSER funds to fill any gaps in the Department’s base budget.
Board Member Uemura, ex officio, stated that if this amount is included in the supplemental budget request and not included in the general fund plan it is important to identify the total amount the Board needs to allocate to schools and follow the intended uses for ESSER funds. Hallett replied that the Department anticipates seeking restoration of any budget cuts in its supplemental budget request.
Board Member Uemura, ex officio, asked about the cost of the educational plan. Hayashi replied that the educational plan to address student needs, based on assessments data, will support unique school needs, but he does not know the exact cost at this time.
Board Member Uemura, ex officio, stated that the end goal is to determine how much funding Hayashi needs to successfully implement the educational plan. He stated that moving the Aukahi financial management system to a cloud based system should result in savings that result in a net zero cost.
Committee Member Payne requested clarification about whether using ESSER funds for offsetting budget cuts is in accordance with federal requirements. Hallett replied that offsetting budget shortfalls are an allowable use and that Congress recognized that states experienced revenue loss due to the pandemic.
Committee Chairperson Voss expressed support for the Department’s amended recommendation and recognized that while there are questions relating to the $20.6 million for item 4.01, any cost savings will be allocated to accelerated learning. He stated that approval of the Department’s revised recommendation is consistent with the Board’s statutory duties.
Committee Member Arakaki moved to amend the main motion to approve the use of up to $61.4 million of ESSER II and ESSER ARP funds for the 2021-2022 fiscal year for the proposed uses and amounts outlined for Item 4.01, Item 4.02, and Item 4.03 in Interim Superintendent Hayashi’s memorandum dated September 16, 2021. Committee Member Namauʻu seconded.
Committee Chairperson Voss called for a roll call vote on the subsidiary motion to amend the main motion. The subsidiary motion was carried unanimously with all members present voting aye (Committee Vice Chairperson Fallin, Committee Members Arakaki, Namauʻu, and Payne).
Committee Chairperson Voss called for a roll call vote on amended motion. The motion was carried unanimously with all members present voting aye (Committee Vice Chairperson Fallin, Committee Members Arakaki, Namauʻu, and Payne).
ACTION: Motion to approve the use of up to $61.4 million of ESSER II and ESSER ARP funds for the 2021-2022 fiscal year for the proposed uses and amounts outlined for Item 4.01, Item 4.02, and Item 4.03 in Interim Superintendent Hayashi’s memorandum dated September 16, 2021. Committee Member Namauʻu seconded. (Arakaki/Namauʻu). The motion carried unanimously with all members present voting aye.
B. Committee Action on recommendation to rename the school currently known as Central Middle School to Princess Ruth Ke‘elikōlani Middle School
Committee Chairperson Voss called for public testimony on this agenda item. No one provided oral testimony at this time.
Committee Chairperson Voss called on Hayashi to present the Department’s recommendation to rename the school currently known as Central Middle School to Princess Ruth Ke‘elikōlani Middle School.
Randal Tanaka, Assistant Superintendent of the Office of Facilities and Operations, called on Linell Dilwith, Complex Area Superintendent (“CAS”), of the Kaimuki-McKinley-Roosevelt Complex Area to provide the recommendation.
CAS Dilwith expressed support for the renaming of the school currently known as Central Middle School to Princess Ruth Ke‘elikōlani Middle School. She stated that the school would like to honor its rich history and culture to celebrate Princess Ruth Ke‘elikōlani by renaming the school.
Joe Passantino, Principal, Central Middle School, stated that the school conducted extensive outreach efforts and renaming the school will tie in a sense of belonging.
Committee Member Payne moved to approve the renaming of the school currently known as Central Middle School to Princess Ruth Ke‘elikōlani Middle School, as outlined in Interim Superintendent Hayashi’s memorandum dated September 16, 2021. Committee Vice Chairperson Fallin seconded.
Board Member Barcarse, ex officio, stated that in 1881, Princess Ruth Ke‘elikōlani was very well respected and beloved throughout the islands. He shared that she was asked to help stop the lava flow in Hilo and was a committed, powerful, and kind leader. Board Member Barcarse, ex officio, stated that there is much to look forward to honor the legacy of our aliʻi and said he would cast a supporting vote during the Board’s general business meeting.
Committee Member Namauʻu commended the community, principal, and CAS for their work to honor Princess Ruth Ke‘elikōlani. She expressed hope that this will start conversations about other opportunities to reflect on the history.
Board Member Lyla Berg, ex officio, expressed appreciation to the school staff for having the courage to look at things differently and raise relevance.
Committee Chairperson Voss stated that it was Princess Ruth Ke‘elikōlani who bequeathed her wealth to Princess Bernice Pauahi Bishop and expressed support for the school raising relevance and renaming the school.
Passantino stated that the school has plans to hold a ceremony to honor the renaming and construct a mural in honor of Princess Ruth Ke‘elikōlani.
Board Member Barcarse, ex officio shared that the University of Hawaii at Hilo College of Hawaiian Language has a wealth of information and also has a building in honor of Princess Ruth Ke‘elikōlani.
Committee Chairperson Voss called for a roll call vote on the motion. The motion carried unanimously with all members present voting aye (Committee Vice Chairperson Fallin, Committee Members Arakaki, Namauʻu, and Payne).
ACTION: Motion to approve the name “Princess Ruth Ke‘elikōlani Middle School,” as outlined in Interim Superintendent Hayashi’s memorandum dated September 16, 2021. Committee Vice Chairperson Fallin seconded. (Payne/Fallin). The motion carried unanimously with all members present voting aye.
IV. Late Public Testimony on Board Agenda Items
Committee Chairperson Voss called for public testimony from any individuals who did not have an opportunity to testify on earlier agenda items.
George White, public, testified regarding agenda item III. A. on the priority allocation of ESSER II and ESSER ARP funds to cover Department budget shortfalls. He expressed concern with the program status for in-school testing and noted that the Department needs to provide schools with tests to handle the COVID-19 pandemic surge.
Lynn Otaguro, public, testified regarding agenda item III. A. on the priority allocation of ESSER II and ESSER ARP funds to cover Department budget shortfalls. She emphasized that it is important that the Board and Department ensure the health and safety for our children with healthy buildings and schools and making in-school COVID-19 testing available.
Susan Pcola-Davis, public, testified regarding agenda item II. Minutes of August 19, 2021, and noted that she will refer to carryover funds, the weighted student formula and impact aid for the minutes of August 19, 2021. She requested that the Department provide an update on the request relating to the carryover limit of 15% and regarding weighted student formula and impact aid funding the Department needs to know the amount of students have been lost to homeschooling.
Linda Elento, public, testified regarding agenda item III. A. on the priority allocation of ESSER II and ESSER ARP funds to cover Department budget shortfalls. She testified as a parent with a special needs child and expressed her concern with a lack of accountability and encouraged the Board to visit the U.S. Department of Education’s Elementary & Secondary Education website.
Committee members received written testimony before the meeting. The following is a listing of the people who submitted written testimony before the meeting.
Name | Organization | Agenda Item |
| Dee Green | | III. B. Committee Action on recommendation to rename the school currently known as Central Middle School to Princess Ruth Ke‘elikōlani Middle School |
| Susan Pcola-Davis | | III. A. Committee Action on recommendation concerning priority allocation of federal funds in the second round of the ESSER II and in the third round of ESSER ARP to fund: Department budget shortfalls |
| Joanne Imada | Niu Valley Middle School PCNC | III. A. Committee Action on recommendation concerning priority allocation of federal funds in the second round of the ESSER II and in the third round of ESSER ARP to fund: Department budget shortfalls |
| Johnette Meielua | Kamiloiki Elementary School PCNC | III. A. Committee Action on recommendation concerning priority allocation of federal funds in the second round of the ESSER II and in the third round of ESSER ARP to fund: Department budget shortfalls |
| Sharde Freitas | Ke Kula Kaiapuni ʻo Ānuenue School PCNC | III. A. Committee Action on recommendation concerning priority allocation of federal funds in the second round of the ESSER II and in the third round of ESSER ARP to fund: Department budget shortfalls |
| Lani Solomona | Office of Strategy, Innovation and Performance, Community Engagement Branch, PCNC | III. A. Committee Action on recommendation concerning priority allocation of federal funds in the second round of the ESSER II and in the third round of ESSER ARP to fund: Department budget shortfalls |
| Diana Baldwin | Kailua High School PCNS | III. A. Committee Action on recommendation concerning priority allocation of federal funds in the second round of the ESSER II and in the third round of ESSER ARP to fund: Department budget shortfalls |
| Cheri Nakamura | HEʻE Coalition | III. A. Committee Action on recommendation concerning priority allocation of federal funds in the second round of the ESSER II and in the third round of ESSER ARP to fund: Department budget shortfalls |
| Dianne Tam | | III. A. Committee Action on recommendation concerning priority allocation of federal funds in the second round of the ESSER II and in the third round of ESSER ARP to fund: Department budget shortfalls |
| George White | | III. A. Committee Action on recommendation concerning priority allocation of federal funds in the second round of the ESSER II and in the third round of ESSER ARP to fund: Department budget shortfalls |
V. Adjournment
Committee Chairperson Voss adjourned the meeting at 12:50 p.m.