DRAFT


STATE OF HAWAII
BOARD OF EDUCATION
FINANCE AND INFRASTRUCTURE COMMITTEE MEETING

MINUTES

Queen Liliuokalani Building
1390 Miller Street, Room 404
Honolulu, Hawaii 96813
Monday, September 7, 2023
*This meeting was a remote meeting under Section 92-3.7, Hawaii Revised Statutes. The meeting recording is available here.

PRESENT:
Ken Kuraya, Chairperson
Bill Arakaki
Kaimana Barcarse
Warren Haruki
Lauren Moriarty
Kahele Dukelow, ex officio

EXCUSED:
Makana McClellan

ALSO PRESENT:
Keith Hayashi, Superintendent, Department of Education
Brian Hallett, Assistant Superintendent, Office of Fiscal Services, Department of Education
Kathleen Stanley, Chairperson, Committee on Weights XIII
Sean Tajima, Complex Area Superintendent, Campbell-Kapolei Complex Area
Kenyon Tam, Board Analyst
Lady Garrett, Secretary


I. Call to Order

Committee Chairperson Ken Kuraya called the Finance and Infrastructure Committee (“Committee”) Meeting to order at 9:00 a.m. Committee Chairperson Kuraya, Committee Members Bill Arakaki, Kaimana Barcarse, and Warren Haruki, and Ex-officio Committee Member Kahele Dukelow were present. Committee Member Lauren Moriarty participated remotely.


II. Approval of Meeting Minutes of August 10, 2023

Committee Chairperson Kuraya asked Committee members to review the Committee’s August 10, 2023, meeting minutes.

Committee Member Barcarse moved to approve the Committee’s August 10, 2023, meeting minutes. Committee Member Arakaki seconded.

Committee Chairperson Kuraya 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 Members Arakaki, Barcarse, Haruki, and Moriarty).

ACTION: Motion to approve the Finance and Infrastructure Committee’s August 10, 2023, meeting minutes (Barcarse/Arakaki). The motion carried through unanimous consent from all members present.


III. Recommendation for Action

Committee Chairperson Kuraya called on Keith Hayashi, Superintendent, Department of Education (“Department”), and Brian Hallett, Assistant Superintendent, Office of Fiscal Services, Department of Education, to provide the recommendations of the Committee on Weights XIII (“COW XIII”) regarding the Weighted Student Formula (“WSF”) fund allocation for the 2024-2025 and 2025-2026 school years.

Hayashi introduced Kathleen Stanley, Chairperson, Committee on Weights XIII, and Sean Tajima, Complex Area Superintendent, Campbell-Kapolei Complex Area.

Stanley shared about her work history with the Department and expressed appreciation to serve on the COW XIII. She stated that the Committee on Weights (“COW”) convenes every other year by statute with a responsibility to review the WSF and provide a recommendation to the Board. Stanley shared that the committee held four meetings with various members from diverse backgrounds, including complex area staff, teachers, principals, registrars, and a business manager. Stanley noted that the guiding principle for the COW XIII was to ensure equitable funding for every student irrespective of his or her circumstances.
Stanley explained that Act 51, Session Laws of Hawaii (2004), (“Act 51”) created the WSF, and she worked to draft the initial bill. Stanley stated that the WSF aimed to build better funding systems to respond to individual characteristics for each student and student populations.

Stanley stated that the Department determines tentative allocations from projected student enrollments and updates them three times during the school year. She explained that the COW has the authority to determine the WSF and recommend adjustments. Stanley noted that the COW’s focus in earlier years was on making the WSF work in the best way possible. She opined that with how the WSF is currently structured, the COW cannot do much more with it unless there is a significant increase or decrease in funds available.

Stanley stated that the COW XIII recommendation is to maintain the status quo and ask for support from the legislature. She explained that the final meeting happened prior to the Maui wildfires, so the COW XIII agreed to reconvene to adjust its recommendation to reroute funds for schools if necessary. Stanley stated that the recommendation is to proceed with the premise that there is an ability to make adjustments during the upcoming legislative session.

Stanley outlined the recommendation for recruitment and retention funds to remain status quo to meet statutory requirements for hard-to-fill and teacher differentials.

Stanley explained that there are no specific recommendations on supplies and noted that some schools found that purchasing through Amazon is more efficient. Stanley noted that schools obtain supplies in a variety of ways to meet their needs.

Stanley stated that the COVID-19 pandemic disrupted enrollment, but it is likely that enrollment projections will slowly stabilize again. She stated that Ka Papahana Kaiapuni (Kaiapuni educational program) funds should continue as categorical funds, and the COW XIII recommends that the Department request additional funds due to the increased interest, which depends on the financial situation. Stanley stated that gifted and talented calculations should not change, and the Department should encourage schools to report for this category.

Stanley stated that the COW XIII also looked at equity for small and/or remote schools, and prior COWs decided to provide $250,000 per year over three years beginning in the 2019-2020 fiscal year. She explained that identified remote and small schools received Elementary and Secondary School Emergency Relief funds that are set to expire in the 2023-2024 fiscal year. She stated that the Board has the obligation to look at the size of schools and the COW XIII’s obligation was to ensure students receive equal treatment across all schools. Stanley recommended that the Board ask the legislature for additional funding. She stated that if the legislature does not provide funding, then the COW XIII agreed to reconvene to determine appropriate needs.

Stanley stated that schools could access reserve funds and request an additional $2.5 million in the financial plan process. She explained that three complex area superintendents (“CAS”) provided a recommendation to the superintendent for the additional monies.

Stanley expressed confidence that the COW XIII can work with the superintendent to meet the needs of schools. She also stated that the COW XIII received public testimony, which related in most part to concerns about small and remote school funding.

Committee Chairperson Kuraya called for public testimony on this agenda item.

Cheri Nakamura, HE‘E Coalition, testified in strong support of additional funds for small and remote schools.

Committee members received written testimony before the meeting. (A listing of the people who submitted written testimony before the meeting is included at the end of these minutes.)

Committee Member Barcarse moved to approve the recommendations of the COW XIII regarding the WSF fund allocation for the 2024-2025 and 2025-2026 school years as described in Stanley’s memorandum dated September 7, 2023. Committee Member Arakaki seconded.

Committee Member Moriarty expressed support for giving additional funds for small schools. She asked for clarification regarding the proposed one-time adjustment through a legislative request because the request appears to be a long-term need instead of a one-time fix. Committee Member Moriarty asked for clarification regarding the process, including the option to reconvene if reserve funds for small and remote schools are necessary. She expressed interest in understanding the order in which this process will take place. Stanley replied that if the legislature appropriates funds to Department’s budget request, those funds will become a recurring part of the base budget unless the legislature specifies it as a one-time appropriation. She explained that remote and small schools would receive an additional $250,000 in addition to their WSF allocation, but the reserve fund is open to other schools through an established process. Stanley stated that the process is that three CASs consider applications then forward their recommendations to the superintendent.

Committee Member Moriarty asked what priorities of the superintendent are considered when requesting additional funds. Stanley replied that if the Department indicates to the legislature that it can manage the budget needs and if the legislature wants to support small and remote schools, then it can provide funds. She stated that the reserve funds are necessary to respond to extraordinary circumstances.

Ex-officio Committee Member Kahele Dukelow asked what amount of additional categorical funds the Department needs to address the growing interest for Kaiapuni programs. Stanley encouraged the Board to have further discussions with the program to determine the appropriate amount.

Board Member Dukelow asked if categorical funds include the $3.5 million in the recommendation. Hallett replied that the Department refers to categorical funds as non-formula funds and clarified that WSF is a formula funding source and categorical is for specific activities, such as Hawaiian studies, Ka Papahana Kaiapuni (Kaiapuni educational program), and athletics.

Board Member Dukelow asked for clarification on the $3.5 million for small or remote schools. Hallett replied that the $3.5 million is referring to WSF funds.

Board Member Dukelow asked whether Ka Papahana Kaiapuni (Kaiapuni educational program) is included in the WSF or categorical funds. Hallett confirmed that Ka Papahana Kaiapuni (Kaiapuni educational program) has an existing categorical funding appropriation, and the COW XIII recommendation is to review and add possible increases. He shared that the Department will provide its supplemental budget proposal to the Board in a month, and he expects discussion relating to Ka Papahana Kaiapuni (Kaiapuni educational program).

Board Member Dukelow stated she would like to understand if it would be more advantageous to include formula funds for Ka Papahana Kaiapuni (Kaiapuni educational program). Stanley suggested that Board Member Dukelow reach out to the program to understand the needs, including how the monies are structured and determined.

Board Member Dukelow shared that the program has shared information with her and asked, if other schools have WSF and categorical funding, why this was not considered for Ka Papahana Kaiapuni (Kaiapuni educational program). Stanley stated that athletics receives only categorical funds, not WSF. She explained that WSF monies pay for positions and supplies at the school level.

Stanley noted that Board Member Dukelow raised an interesting point and noted that the COW XIII did not have the discussion about Ka Papahana Kaiapuni (Kaiapuni educational program) funding being formula driven, and this conversation needs to happen with the program. Board Member Dukelow expressed support to have discussions with the program and emphasized that schools like Ke Kula Kaiapuni ‘O Ānuenue experience similar challenges like smaller schools.

Hallett clarified that Ke Kula Kaiapuni ‘O Ānuenue receives layers of funding from the WSF, and categorical funds are additional. He explained that the COW XIII considered if the categorical funds should be folded into the WSF, which caused concerns on diluting the targeted support. He stated that from Ka Papahana Kaiapuni (Kaiapuni educational program) perspective, it might be disadvantageous to go this route.

Board Member Dukelow asked if schools could go through both routes. Hallett clarified that all schools go both routes except for Ni‘ihau High and Elementary School, Olomana School, and the School for Deaf and Blind, which receive categorical funds. He stated that the thinking is that the additional support is not sufficient, but it is not ripe to have this as formula funded and to keep this categorical for now.

Board Member Dukelow asked if the COW meets every year. Stanley replied that the COW meets every two years and expressed understanding about Board Member Dukelow wanting to think about additional ways to fund the program because of growing interest.

Committee Member Barcarse moved to amend the main motion to accept the COW XIII’s recommendations with the understanding that before the Board and Department request funds from the Legislature, the Department has a discussion with the Kaiapuni programs to determine an appropriate fund request amount for Ka Papahana Kaiapuni (the Kaiapuni educational program). Committee Member Haruki seconded.

Committee Member Haruki asked if the Department could accomplish what Committee Member Barcarse’s secondary motion proposes as part of the supplemental budget process. Hallett replied that Ka Papahana Kaiapuni (Kaiapuni educational program) is being looked at as part of the fiscal biennium budget request, which was not funded by the legislature. He stated that conversations are happening, and since the COW XIII completed its recommendation, he requested clarity on who should be included in the conservation.

Committee Member Barcarse clarified that the proposed amendment is to accept the COW XIII recommendation as is and to have additional conversations relating to Ka Papahana Kaiapuni (Kaiapuni educational program) to discuss the funding.

Board Member Dukelow stated that given the appropriation by school, which varies, she is looking at a different way for each school to meet their needs. She stated that categorical funding, as intended, should add on to the basic needs of schools instead of pay for positions.

Committee Member Haruki asked for clarification of the recommendation from Committee Member Barcarse. Committee Member Barcarse explained that the recommendation intends to accept the report and that the Board and Department continue discussions with the Kaiapuni programs to come to an appropriate funding request amount.

Hallett stated that the budget instructions deadline will be September 29, 2023, and the Department will ask for an extension. He assured the Board that discussions are happening relating to Ka Papahana Kaiapuni (Kaiapuni educational program) with Tammi Oyadomari-Chun, Deputy Superintendent of Strategy.

Board Member Dukelow expressed support for the Office of Hawaii Education to determine the use of the funds, but she would like to think about the funds to help schools more easily provide dual services and to consider hiring the Kaiapuni program staff for schools within schools.

Committee Member Haruki expressed appreciation to the COW XIII, Stanley, and the Department recommendation submitted. He noted that the public testimony submitted was in support of the recommendation.

Hayashi asked for clarity on the amendment. Committee Member Barcarse explained that the amendment is to accept the COW XIII recommendations with the understanding that a discussion with the Kaiapuni programs happens prior to going to the legislature with the request.

Committee Member Moriarty expressed support for Ka Papahana Kaiapuni (Kaiapuni educational program). She expressed concern with the time sensitivity without context of the overall budget and the impacts to consider, such as the Maui fire impacts, and cuts to the budget from earlier this year.

Committee Member Barcarse clarified that the funding amount for discussions with the Kaiapuni programs is for additional categorical funds to determine an appropriate amount before going to the legislature for additional support.

Committee Member Arakaki asked for clarification on the process and if the recommendation includes Board members speaking with the Kaiapuni programs or if there is a process already in place since discussions are happening. Hayashi replied that the Department would engage with the Kaiapuni programs and then report to the Board.

Committee Member Arakaki expressed appreciation for the COW XIII and Stanley for their work on the WSF recommendation.

Committee Chairperson Kuraya called for a roll call vote on the secondary motion. The motion carried unanimously with all members present voting aye (Committee Members Arakaki, Barcarse, Haruki, and Moriarty).

Committee Chairperson Kuraya expressed appreciation to the COW XIII for spending time and effort to develop the recommendation. He also expressed appreciation to the Department’s budget execution team for their hard work. Committee Chairperson Kuraya suggested that the future COW would need to determine if small schools should receive a base budget.

Committee Chairperson Kuraya called for a roll call vote on the amended main motion. The motion carried unanimously with all members present voting aye (Committee Members Arakaki, Barcarse, Haruki, and Moriarty).

ACTION: Motion to approve the recommendations of the COW XIII regarding the WSF fund allocation for the 2024-2025 and 2025-2026 school years, as described in Stanley’s memorandum dated September 7, 2023, with the understanding that before the Board and Department request funds from the Legislature, the Department has a discussion with the Kaiapuni programs to determine an appropriate fund request amount for Ka Papahana Kaiapuni (the Kaiapuni educational program). The motion carried unanimously with all members present voting aye.


IV. Adjournment

Committee Chairperson Kuraya adjourned the meeting at 10:06 a.m.

List of the people who submitted written testimony before the meeting


NAME
Organization
Agenda Item
Lea AlbertIII.A. Committee Action on recommendation concerning recommendations of the COW XIII regarding the WSF fund allocation for the 2024-2025 and 2025-2026 school years
Shama Rain AndrewsIII.A. Committee Action on recommendation concerning recommendations of the COW XIII regarding the WSF fund allocation for the 2024-2025 and 2025-2026 school years
Alexandra Obra
Waiāhole Elementary School, Principal
III.A. Committee Action on recommendation concerning recommendations of the COW XIII regarding the WSF fund allocation for the 2024-2025 and 2025-2026 school years
Cheri Nakamura
HE’E Coalition
III.A. Committee Action on recommendation concerning recommendations of the COW XIII regarding the WSF fund allocation for the 2024-2025 and 2025-2026 school years
Joseph Wat
KEY Project, Community Development Coordinator
III.A. Committee Action on recommendation concerning recommendations of the COW XIII regarding the WSF fund allocation for the 2024-2025 and 2025-2026 school years
Grace LandezaIII.A. Committee Action on recommendation concerning recommendations of the COW XIII regarding the WSF fund allocation for the 2024-2025 and 2025-2026 school years
Kameleonalani RichardsonIII.A. Committee Action on recommendation concerning recommendations of the COW XIII regarding the WSF fund allocation for the 2024-2025 and 2025-2026 school years
Cheryl BurghardtIII.A. Committee Action on recommendation concerning recommendations of the COW XIII regarding the WSF fund allocation for the 2024-2025 and 2025-2026 school years
Jennifer Luke-Payne
Ka’aawa Elementary School, Principal
III.A. Committee Action on recommendation concerning recommendations of the COW XIII regarding the WSF fund allocation for the 2024-2025 and 2025-2026 school years
Brenton AwaHawaii State Senator, District 23 (Kāne’ohe, Kahalu’u through Lā’ie, Kahuku to Mokulē’ia, Schofield Barracks, Kunia Camp)III.A. Committee Action on recommendation concerning recommendations of the COW XIII regarding the WSF fund allocation for the 2024-2025 and 2025-2026 school years
Malia PimentelIII.A. Committee Action on recommendation concerning recommendations of the COW XIII regarding the WSF fund allocation for the 2024-2025 and 2025-2026 school years
Logan HalasIII.A. Committee Action on recommendation concerning recommendations of the COW XIII regarding the WSF fund allocation for the 2024-2025 and 2025-2026 school years
Brad Johnasen-HalasIII.A. Committee Action on recommendation concerning recommendations of the COW XIII regarding the WSF fund allocation for the 2024-2025 and 2025-2026 school years
Carrie DeMottIII.A. Committee Action on recommendation concerning recommendations of the COW XIII regarding the WSF fund allocation for the 2024-2025 and 2025-2026 school years