January 16, 2025

STATE OF HAWAII
BOARD OF EDUCATION
FINANCE AND INFRASTRUCTURE COMMITTEE MEETING

MINUTES

Queen Liliuokalani Building
1390 Miller Street, Room 404
Honolulu, Hawaii 96813
Thursday, January 16, 2025

PRESENT:
Ken Kuraya, Chairperson
Elynne Chung, Vice Chairperson
Kahele Dukelow
Mary Hattori
Roy Takumi, Ex Officio
Bill Arakaki, Ex Officio

EXCUSED:
Wesley Lo

ALSO PRESENT:
Keith Hayashi, Superintendent, Department of Education
Heidi Armstrong, Deputy Superintendent of Academics, Department of Education
Dean Uchida, Deputy Superintendent of Operations, Department of Education
Brian Hallett, Assistant Superintendent, Office of Fiscal Services, Department of Education
Teri Ushijima, Assistant Superintendent, Office of Curriculum, Instruction and Design, Department of Education
Jadine Urasaki, Public Works Administrator, Office of Facilities and Operations, Department of Education
Ethan Yang, Board Student Representative
Capsun Poe, Board Executive Director
Wimmie Wong Lui, Board Analyst
Keli Houston, Board Analyst
Lady Garrett, Secretary

I. Call to Order

Committee Chairperson Ken Kuraya called the Finance and Infrastructure Committee (“Committee”) Meeting to order at 11:31 a.m.

Committee Chairperson Kuraya acknowledged that food is a basic need, and the importance of nourishment in a student’s ability to learn. He announced that the intent is to approve the increases for only second breakfast and adult breakfast, and second lunch and adult lunch. The fee increases for the first breakfast and lunch will be deferred at this time.

II. Approval of meeting minutes of December 12, 2024, Finance and Infrastructure Committee meeting

ACTION: Approval of the meeting minutes of the December 12, 2024, Finance and Infrastructure Committee meeting. (Chung/Hattori). The motion carried unanimously with all members present.

III. Update on Department of Education’s capital improvement projects and capital improvement projects budget request for fiscal biennium 2025-27

Committee Chairperson Kuraya called on Hayashi, Superintendent to provide the Department of Education’s (Department) capital improvement projects (CIP) and CIP budget request for fiscal biennium (FB) 2025-27. Hayashi introduced Dean Uchida, Deputy Superintendent of Operations, and Jadine Urasaki, Public Works Administrator, to provide the CIP update.

Urasaki outlined the CIP and CIP budget request for FB 2025-2027, the Department submitted a $1.9 billion request and Governor Josh Green approved $684 million. The emphasis will be looking at lump sum categories to allow for flexibility to take care of statewide needs and infrastructure to support schools. The process provides more transparency and flexibility to execute the program needs. She explained that the Department developed 11 lump sum categories to maximize efficiency as follows: (1) capacity building; (2) deferred maintenance; (3) health and safety; (4) compliance; (5) instructional; (6) support facilities; (7) telecommunication infrastructure; (8) project completion; (9) federal grants; (10) temporary facilities; and (11) planning, design, and land acquisition.

Committee Chairperson Kuraya called for oral testimony.

Elizabeth Ray, member of the public, testified that all students were affected by the Lahaina wildfires and the Department should be prioritizing more resources for these students.

Susan Pcola-Davis, member of the public, testified in support of how the Department is prioritizing the CIP and expressed support for the new way of doing things.

Committee Member Dukelow asked for an update on the replacement school for Lahaina. Urasaki stated that the Department is still reviewing information and discussions are ongoing to reassess what needs to be done. Committee Member Dukelow asked what the expected timeline for decision making is. Urasaki replied that the Department anticipates decision making within the next month and a half.

IV. Fees for student activities, summer school, school meals, and bus transportation

Committee Chairperson Kuraya reiterated that recognizing that food is a basic need, and the importance of nourishment in a student’s ability to learn better, the Chair’s intent is to approve the increases for the second breakfast and adult breakfast, and second lunch and adult lunch. I would like to approve the following school meal price increases only: second breakfast and adult breakfast; and second lunch and adult lunch.

Committee Chairperson Kuraya called on Hayashi to provide the recommendation on fees for student activities, summer school, school meals, and bus transportation. Hayashi stated that the Department is currently out of compliance with state law which requires that the Department charge for half of the cost to provide meals. The school meal prices have not been adjusted since 2015 but costs have increased significantly. Due to the COVID-19 pandemic and Maui wildfires the Department has not brought a proposal to the Board in recognition of the cost barriers for students. The Department is faced with legal requirements to ensure the viability of the school meal program and expressed appreciation for Governor Green for his attempt to submit legislation for the school meal program.

Hayashi noted that regarding the student fee increase proposal the recommendation represents the maximum amount allowable that schools can charge, and most of the fees have not been adjusted for twenty years. The summer school tuition costs have been subsidized by leveraging federal COVID-19 pandemic relief funding till summer 2025. He explained that the recommendation will be for summer 2026 and beyond. The Department has submitted a budget request to the legislature to help offset costs for families. Hayashi introduced Teri Ushijima, Assistant Superintendent, Office of Curriculum, Instruction and Design who will provide information on the student fees followed by Uchida for the school meals and student transportation.

Ushijima stated that the Department is seeking approval for increases for student activities, summer school tuition, and school meals including proposed actions to allow for changes to student transportation fees. The Department request to raise fees is due to increased costs to sustain these programs, and referred to page 3 of the memorandum which lists the proposed maximum allowable amounts. The student
activity fees support co-curricular learning activities as referenced in Table 1, with a proposed increase of $10 for each fee including student association fees, school club dues (per club), class dues for Grades 6-8, and class dues for Grades 9-12. The Department has received feedback on the various efforts to support students who are experiencing financial hardships. The other student fees referenced in Table 2, does not require Board action but will be subject to approval by the Superintendent include athletic books, yearbooks, caps and gowns (basic), and newspapers. Ushijima stated that school principals provided input on the proposed fee adjustments including how to address financial assistance for those students who experience financial hardships. The summer school fees are referenced in Table 3, the last increase was in June 2010 for implementation in summer 2011 from $160 to $190 for a one credit course for remediation, advancement or enrichment. The Department recommends adjusting the summer school fees to $260 for summer 2026.

Uchida stated that the student meal increases are referenced in Table 4, and emphasized that the Department is faced with the statutory requirement that school meal prices be half of the cost. The Department expressed concern and will monitor student participation with the fee increases implemented in phases. He stated that student transportation prices are established by Hawaii Administrative Rules and the Department will need to come back to the Board on the proposal. The Department is looking to work with City and County partners.

Hayashi stated that regarding the meal price increases the Department appreciates Governor Green’s intent to submit legislation before the legislature and noted that there are proposals to subsidize the costs of meals. The Department respectfully requests consideration from the Board in the event that additional funds are not available for the approval of this agenda item.

Committee Chairperson Kuraya called for public testimony.

Daniela Spoto, member of the public, testified in opposition to the increase in school meal fees and noted that the free and reduced lunch requirement still puts costs out of reach for families to feed students at school.

Elizabeth Ray, member of the public, testified in opposition to the increase in school meal fees. She requested that the Department exclude fee increases for the schools impacted by the Lahaina wildfires who are already facing challenges.

Susan Pcola-Davis, member of the public, testified that public schools are no longer free public education and families can expect that fees will be much higher. She also stated that the reasons for summer learning do not always match with what the Department is referring to in the memorandum.

Camron Hurt, Vice Chair for Hawaii Democratic Party and Governing Board Chair for Voyager Charter School, testified in opposition to increases to school meals and activity fees.

Marissa Baptista, member of the public, testified in opposition to the student meal fee increases and recommended that the Board request more analysis. She noted that fee increases will be a barrier for students who are experiencing financial hardship.

Corey Rosenlee, member of the public, testified that there have been numerous bills introduced so that students can have free breakfast and lunch but the Department has not provided enough information. He requested that the Board ask what is the cost to make sure all students have access to free breakfast and lunch.

Committee Member Dukelow requested more details on the estimates for schools that are subsidizing activities. She also noted that the recommendation includes information on how students who qualify can receive support and requested more details on how schools will cover these costs beyond the federal designation.

Committee Member Hattori echoed the request for more details from schools to understand the totality of costs for fully engaged students including information on what external partnerships are available to help cover the costs.

Heidi Armstrong, Deputy Superintendent of Academics, stated that all schools were surveyed regarding cap and gown fees if any students were denied participation due to being unable to pay. She stated that the Department can provide a sampling but does not gather the information being requested from schools. Hayashi asked Yang to share his thoughts on the proposal.

Ethan Yang, Board Student Representative stated that as an active student participant the funds are used for costs that are increasing. He shared that some clubs do not charge fees but when planning school wide activities, the costs are becoming more and more expensive so this will help to sustain these programs.

Committee Vice Chairperson Chung stated that there are students who cannot afford to participate in certain activities; however, students manage to come up with funds to attend events.

Committee Member Hattori asked if the student fee increase is approved how the Board can gain a sense about the impacts and emphasized that the Committee needs data. She expressed concerns from an equity standpoint and expressed understanding of the rationale. Committee Chairperson Kuraya stated that it would be good to get information and principals have an understanding of how to get students involved. Hayashi asked for clarification if the request is to gather information from principals on fee impacts. Armstrong replied that the Department does not want to deny students due to cost but there are costs for the activities. She suggested that the Department can ask schools for informal data on whether any students were denied participation by fee increases.

Committee Member Dukelow stated that the fees limit participation for students and she would like to formalize how to access the funds if needed. Committee Chairperson Kuraya expressed appreciation for the discussion and noted that informal feedback from principals to be able to determine how to meet the needs of students.

Hayashi emphasized that principals do whatever it takes to help students and asked for Yang to reach out to the Hawaii State Student Council to provide feedback on the impact of school fee increases. Yang expressed appreciation and shared that Ushijima will present to HSSC since when costs rise participation rates decline.

ACTION: Approve the student activity fee increases beginning in the school year 2026-27, as explained in the Department of Education’s memorandum, dated January 16, 2025. (Dukelow/Chung). The motion failed with Board Members Kuraya, and Chung voting aye. Board Members Dukelow, and Hattori voted no.

Committee Chairperson Kuraya stated that the Committee will address summer school fee increases.

Committee Member Dukelow expressed concern about the summer school fee increases potentially prohibiting students from participating in the program. Committee Vice Chairperson Chung expressed support for the recommendation to set the maximum allowable charge and noted that principals work to ensure students have access to summer school.

Ushijima confirmed that schools do not need to charge the maximum amount and it varies across schools. The Department reviewed other costs across other states which ranged from $150 to $1000 based on the actual costs. Hayashi stated that for recovery credits summer school is a self-sustaining program but costs increase to help keep enrollment numbers lower.

Committee Member Hattori asked if others approach schools and are willing to subsidize the costs for summer school. Hayashi replied that a predictable amount is dependent on the amount of support from external sources so it will be difficult to determine. Committee Member Hattori noted that if the summer school rate is not reflective of the costs, then it is not helpful.

Committee Member Dukelow asked about access for students and if there are plans to request funds that were previously offset with ESSER monies. Hayashi confirmed that the Department has a request to the legislature.

Committee Chairperson Kuraya asked about funding for summer school being withheld from the legislature. Brian Hallett, Assistant Superintendent, Office of Fiscal Services replied that the Department has an update on the budget restrictions and appropriated $20.9 million in general funds on a one-time basis and initially Governor Green released 90% of $18 million for this upcoming summer. He also shared that there is a legislative request for continued funding for 2026-2027 summer school.
Hayashi emphasized that if the Department is unable to increase fees and funding is not received the opportunities for students will not be provided at the current levels. Committee Chairperson Kuraya stated that the additional funding will support the summer school program.

ACTION: Approve the summer school fee increases beginning in the school year 2026-27, as explained in the Department of Education’s memorandum, dated January 16, 2025. (Dukelow/Hattori). The motion carries with Board Member Chung, Hattori, and Kuraya voting aye. Board Member Dukelow voted no.

Committee Chairperson Kuraya stated that the Committee will address school meal fee increases.

Committee Member Dukelow expressed appreciation for the amended proposal.

ACTION: Approve increases to school meal prices beginning in school year 2025-26, as described in Table 4 of the Department of Education’s memorandum dated January 16, 2025, but only for second breakfast and adult breakfast, and second lunch and adult lunch. (Dukelow/Hattori). The motion carried unanimously with all members present voting aye.

V. Adjournment

Committee Chairperson Kuraya adjourned the meeting at 12:57 p.m.

For written testimony see the following link:
https://boe.hawaii.gov/wp-content/uploads/2025/01/2025-01-16_FIC_testimony-2025-01-17_Redacted.pdf

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