STATE OF HAWAII
BOARD OF EDUCATION
FINANCE AND INFRASTRUCTURE COMMITTEE

MINUTES

Queen Liliuokalani Building
1390 Miller Street, Room 404
Honolulu, Hawaii 96813
Thursday, September 19, 2019

PRESENT:
Kenneth Uemura, Committee Chairperson
Bruce Voss, Esq., Committee Vice Chairperson
Margaret Cox
Nolan Kawano
Kili Namauʻu
Catherine Payne
Dwight Takeno
Kaimana Barcarse, Ex Officio

EXCUSED:
Brian De Lima, Esq.

ALSO PRESENT:
Christina Kishimoto, Superintendent
Brian Hallett, Interim Assistant Superintendent and Chief Financial Officer, Office of Fiscal Services
Christine Shaw, Interim Assistant Superintendent, Office of School Facilities and Support Services
John Chung, Public Works Manager, Project Management Section, Office of School Facilities and Support Services
Mitchell Otani, COW XI Chairperson and Kalani High School Principal
Alison Kunishige, Executive Director
Kenyon Tam, Board Analyst
Regina Pascua, Board Private Secretary
Irina Dana, Secretary


I. Call to Order

The Finance and Infrastructure Committee (“Committee”) was called to order by Committee Chairperson Kenneth Uemura at 11:12 a.m.


II. Public testimony on Finance and Infrastructure Committee (“Committee” or “FIC”) agenda items

Note: The Committee took this agenda item after agenda item IV.B., entitled “Presentation on Department of Education plans to vacate Young Street Property,” but before agenda item V.A., entitled “Committee Action on new Board Policy 301-10, entitled Equitable School Facilities to ensure Board of Education policies and structures enable the Department of Education to complete all facilities projects at its schools with the greatest socioeconomic and academic needs as determined by an equity priority order (FIC Strategic Priority 2).”

Committee Chairperson Uemura called for public testimony. The following people provided oral testimony.

Name
Organization
Agenda Item
Position
Fisiipeau DrummondPublicN/AComment
Anuhea DrummondPublicN/AComment

Fisiipeau Drummond, member of the public, testified on her concerns regarding a wind turbine project near Kahuku High School and Elementary School. She detailed the negative health and environmental effects from wind turbines and asked the Committee to support the community’s stance against the wind turbine project.

Anuhea Drummond, member of the public, testified on her concerns regarding a wind turbine project in the Kahuku community and detailed how windmills could negatively affect schools, residences, and enrollment counts.

Hawaii State Senator Gil Riviere testified on the recommendations of the Committee on Weights XI regarding the Weighted Student Formula fund allocation for the 2020-2021 and 2021-2022 school years. He detailed that small rural schools on Oahu are within his district and face many disadvantages, including athletics, transportation, and location challenges. He expressed that he supports additional funding for neighbor island schools but noted that a reduction of all students’ weight by five dollars would harm rural schools on Oahu.

The Committee also received written testimony. The following is a listing of the people that submitted written testimony before the testimony deadline.

Name
Organization
Agenda Item
Position
Jennifer Luke-PayneKaʻaʻawa Elementary SchoolVII.C. Board Action on Finance and Infrastructure Committee recommendations concerning recommendations of the Committee on Weights XI regarding the Weighted Student Formula fund allocation for the 2020-2021 and 2021-2022 School YearsOppose
Sharon (Matayoshi) TakamoriPublicVII.C. Board Action on Finance and Infrastructure Committee recommendations concerning recommendations of the Committee on Weights XI regarding the Weighted Student Formula fund allocation for the 2020-2021 and 2021-2022 School YearsOppose
Norman SadoyamaPublicVII.C. Board Action on Finance and Infrastructure Committee recommendations concerning recommendations of the Committee on Weights XI regarding the Weighted Student Formula fund allocation for the 2020-2021 and 2021-2022 School YearsOppose
Brittany HopkinsPublicVII.C. Board Action on Finance and Infrastructure Committee recommendations concerning recommendations of the Committee on Weights XI regarding the Weighted Student Formula fund allocation for the 2020-2021 and 2021-2022 School YearsOppose
Alexandra ObraWaiāhole Elementary SchoolVII.C. Board Action on Finance and Infrastructure Committee recommendations concerning recommendations of the Committee on Weights XI regarding the Weighted Student Formula fund allocation for the 2020-2021 and 2021-2022 School YearsOppose
Amarilis AcevedoWaiāhole Elementary SchoolVII.C. Board Action on Finance and Infrastructure Committee recommendations concerning recommendations of the Committee on Weights XI regarding the Weighted Student Formula fund allocation for the 2020-2021 and 2021-2022 School YearsOppose
Emily AlagoWaiāhole Elementary SchoolVII.C. Board Action on Finance and Infrastructure Committee recommendations concerning recommendations of the Committee on Weights XI regarding the Weighted Student Formula fund allocation for the 2020-2021 and 2021-2022 School YearsOppose
Pamela AloWaiāhole Elementary SchoolVII.C. Board Action on Finance and Infrastructure Committee recommendations concerning recommendations of the Committee on Weights XI regarding the Weighted Student Formula fund allocation for the 2020-2021 and 2021-2022 School YearsOppose
Julieta Antone-NagataPubilcVII.C. Board Action on Finance and Infrastructure Committee recommendations concerning recommendations of the Committee on Weights XI regarding the Weighted Student Formula fund allocation for the 2020-2021 and 2021-2022 School YearsOppose
Shannah-Li Brown-SantiagoWaiāhole Elementary SchoolVII.C. Board Action on Finance and Infrastructure Committee recommendations concerning recommendations of the Committee on Weights XI regarding the Weighted Student Formula fund allocation for the 2020-2021 and 2021-2022 School YearsOppose
Carlo CarusoPublicVII.C. Board Action on Finance and Infrastructure Committee recommendations concerning recommendations of the Committee on Weights XI regarding the Weighted Student Formula fund allocation for the 2020-2021 and 2021-2022 School YearsOppose
Darryl Chun, Jeffrey Lapilio, Ryan Nekonishi, Cheryl Kim, Molly O’DellWaiāhole Elementary SchoolVII.C. Board Action on Finance and Infrastructure Committee recommendations concerning recommendations of the Committee on Weights XI regarding the Weighted Student Formula fund allocation for the 2020-2021 and 2021-2022 School YearsOppose
Holly deMelloPublicVII.C. Board Action on Finance and Infrastructure Committee recommendations concerning recommendations of the Committee on Weights XI regarding the Weighted Student Formula fund allocation for the 2020-2021 and 2021-2022 School YearsOppose
Uʻi GohierWaiāhole Elementary SchoolVII.C. Board Action on Finance and Infrastructure Committee recommendations concerning recommendations of the Committee on Weights XI regarding the Weighted Student Formula fund allocation for the 2020-2021 and 2021-2022 School YearsOppose
Lisha HendrickWaiāhole Elementary SchoolVII.C. Board Action on Finance and Infrastructure Committee recommendations concerning recommendations of the Committee on Weights XI regarding the Weighted Student Formula fund allocation for the 2020-2021 and 2021-2022 School YearsOppose
Noe KahalepunaPublic VII.C. Board Action on Finance and Infrastructure Committee recommendations concerning recommendations of the Committee on Weights XI regarding the Weighted Student Formula fund allocation for the 2020-2021 and 2021-2022 School YearsOppose
Joelyn KainaWaiāhole Elementary SchoolVII.C. Board Action on Finance and Infrastructure Committee recommendations concerning recommendations of the Committee on Weights XI regarding the Weighted Student Formula fund allocation for the 2020-2021 and 2021-2022 School YearsOppose
Shane Toshio KumashiroWaiāhole Elementary SchoolVII.C. Board Action on Finance and Infrastructure Committee recommendations concerning recommendations of the Committee on Weights XI regarding the Weighted Student Formula fund allocation for the 2020-2021 and 2021-2022 School YearsOppose
Michelle KaneyukiWaiāhole Elementary SchoolVII.C. Board Action on Finance and Infrastructure Committee recommendations concerning recommendations of the Committee on Weights XI regarding the Weighted Student Formula fund allocation for the 2020-2021 and 2021-2022 School YearsOppose
Donna KawasakiWaiāhole Elementary SchoolVII.C. Board Action on Finance and Infrastructure Committee recommendations concerning recommendations of the Committee on Weights XI regarding the Weighted Student Formula fund allocation for the 2020-2021 and 2021-2022 School YearsOppose
Brian LewisPublicVII.C. Board Action on Finance and Infrastructure Committee recommendations concerning recommendations of the Committee on Weights XI regarding the Weighted Student Formula fund allocation for the 2020-2021 and 2021-2022 School YearsOppose
Sheila ManuelWaiāhole Elementary SchoolVII.C. Board Action on Finance and Infrastructure Committee recommendations concerning recommendations of the Committee on Weights XI regarding the Weighted Student Formula fund allocation for the 2020-2021 and 2021-2022 School YearsOppose
Penny RapozaWaiāhole Elementary SchoolVII.C. Board Action on Finance and Infrastructure Committee recommendations concerning recommendations of the Committee on Weights XI regarding the Weighted Student Formula fund allocation for the 2020-2021 and 2021-2022 School YearsOppose
Theresa Rayco, Colette MizunoWaiāhole Elementary SchoolVII.C. Board Action on Finance and Infrastructure Committee recommendations concerning recommendations of the Committee on Weights XI regarding the Weighted Student Formula fund allocation for the 2020-2021 and 2021-2022 School YearsOppose
Mikilani Keohokalole Tupuola Waiāhole Elementary SchoolVII.C. Board Action on Finance and Infrastructure Committee recommendations concerning recommendations of the Committee on Weights XI regarding the Weighted Student Formula fund allocation for the 2020-2021 and 2021-2022 School YearsOppose
Christine WilkinsonPublicVII.C. Board Action on Finance and Infrastructure Committee recommendations concerning recommendations of the Committee on Weights XI regarding the Weighted Student Formula fund allocation for the 2020-2021 and 2021-2022 School YearsOppose
Jacqueline YanagiWaiāhole Elementary SchoolVII.C. Board Action on Finance and Infrastructure Committee recommendations concerning recommendations of the Committee on Weights XI regarding the Weighted Student Formula fund allocation for the 2020-2021 and 2021-2022 School YearsOppose
Tamar BeeKaʻaʻawa Elementary SchoolVII.C. Board Action on Finance and Infrastructure Committee recommendations concerning recommendations of the Committee on Weights XI regarding the Weighted Student Formula fund allocation for the 2020-2021 and 2021-2022 School YearsOppose
Davelani JohnsonPublicVII.C. Board Action on Finance and Infrastructure Committee recommendations concerning recommendations of the Committee on Weights XI regarding the Weighted Student Formula fund allocation for the 2020-2021 and 2021-2022 School YearsOppose
Lucy SalasPublicVII.C. Board Action on Finance and Infrastructure Committee recommendations concerning recommendations of the Committee on Weights XI regarding the Weighted Student Formula fund allocation for the 2020-2021 and 2021-2022 School YearsOppose
Keith JohnsonPublicVII.C. Board Action on Finance and Infrastructure Committee recommendations concerning recommendations of the Committee on Weights XI regarding the Weighted Student Formula fund allocation for the 2020-2021 and 2021-2022 School YearsOppose
Kanani IoanePublicVII.C. Board Action on Finance and Infrastructure Committee recommendations concerning recommendations of the Committee on Weights XI regarding the Weighted Student Formula fund allocation for the 2020-2021 and 2021-2022 School YearsOppose
Jason IoanePublicVII.C. Board Action on Finance and Infrastructure Committee recommendations concerning recommendations of the Committee on Weights XI regarding the Weighted Student Formula fund allocation for the 2020-2021 and 2021-2022 School YearsOppose
Melvin IgePublicVII.C. Board Action on Finance and Infrastructure Committee recommendations concerning recommendations of the Committee on Weights XI regarding the Weighted Student Formula fund allocation for the 2020-2021 and 2021-2022 School YearsOppose
Aliyah JohnsonPublicVII.C. Board Action on Finance and Infrastructure Committee recommendations concerning recommendations of the Committee on Weights XI regarding the Weighted Student Formula fund allocation for the 2020-2021 and 2021-2022 School YearsOppose
Staci K. ShiromaKaʻaʻawa Elementary SchoolVII.C. Board Action on Finance and Infrastructure Committee recommendations concerning recommendations of the Committee on Weights XI regarding the Weighted Student Formula fund allocation for the 2020-2021 and 2021-2022 School YearsOppose
Matthew HoCastle-Kahuku Complex AreaVII.C. Board Action on Finance and Infrastructure Committee recommendations concerning recommendations of the Committee on Weights XI regarding the Weighted Student Formula fund allocation for the 2020-2021 and 2021-2022 School YearsOppose/Comment
Nikki MorishigeWaiāhole Elementary SchoolVII.C. Board Action on Finance and Infrastructure Committee recommendations concerning recommendations of the Committee on Weights XI regarding the Weighted Student Formula fund allocation for the 2020-2021 and 2021-2022 School YearsOppose
Vivien Lee, Charlie ReppunPublicVII.C. Board Action on Finance and Infrastructure Committee recommendations concerning recommendations of the Committee on Weights XI regarding the Weighted Student Formula fund allocation for the 2020-2021 and 2021-2022 School YearsOppose
Laurence UyemuraWaiāhole -Waikāne Community AssociationVII.C. Board Action on Finance and Infrastructure Committee recommendations concerning recommendations of the Committee on Weights XI regarding the Weighted Student Formula fund allocation for the 2020-2021 and 2021-2022 School YearsOppose
Melissa DrewWaiāhole Elementary SchoolVII.C. Board Action on Finance and Infrastructure Committee recommendations concerning recommendations of the Committee on Weights XI regarding the Weighted Student Formula fund allocation for the 2020-2021 and 2021-2022 School YearsOppose
Patrick Dumadag, Roxanne DumadagPublicVII.C. Board Action on Finance and Infrastructure Committee recommendations concerning recommendations of the Committee on Weights XI regarding the Weighted Student Formula fund allocation for the 2020-2021 and 2021-2022 School YearsOppose
Chriselda LopesWaiāhole Elementary SchoolVII.C. Board Action on Finance and Infrastructure Committee recommendations concerning recommendations of the Committee on Weights XI regarding the Weighted Student Formula fund allocation for the 2020-2021 and 2021-2022 School YearsOppose
Shelby FernandezPublicVII.C. Board Action on Finance and Infrastructure Committee recommendations concerning recommendations of the Committee on Weights XI regarding the Weighted Student Formula fund allocation for the 2020-2021 and 2021-2022 School YearsOppose
Albert BadiyoPublicVII.C. Board Action on Finance and Infrastructure Committee recommendations concerning recommendations of the Committee on Weights XI regarding the Weighted Student Formula fund allocation for the 2020-2021 and 2021-2022 School YearsOppose
Patricia RoyosPublicVII.C. Board Action on Finance and Infrastructure Committee recommendations concerning recommendations of the Committee on Weights XI regarding the Weighted Student Formula fund allocation for the 2020-2021 and 2021-2022 School YearsOppose
Lisa McFarlanePublicVII.C. Board Action on Finance and Infrastructure Committee recommendations concerning recommendations of the Committee on Weights XI regarding the Weighted Student Formula fund allocation for the 2020-2021 and 2021-2022 School YearsOppose
Inga HalasPublicVII.C. Board Action on Finance and Infrastructure Committee recommendations concerning recommendations of the Committee on Weights XI regarding the Weighted Student Formula fund allocation for the 2020-2021 and 2021-2022 School YearsOppose
Mary KupauPublicVII.C. Board Action on Finance and Infrastructure Committee recommendations concerning recommendations of the Committee on Weights XI regarding the Weighted Student Formula fund allocation for the 2020-2021 and 2021-2022 School YearsOppose
Darrell ManaloPublicVII.C. Board Action on Finance and Infrastructure Committee recommendations concerning recommendations of the Committee on Weights XI regarding the Weighted Student Formula fund allocation for the 2020-2021 and 2021-2022 School YearsOppose
Zaudia CheePublicVII.C. Board Action on Finance and Infrastructure Committee recommendations concerning recommendations of the Committee on Weights XI regarding the Weighted Student Formula fund allocation for the 2020-2021 and 2021-2022 School YearsOppose
Various StudentsKaʻaʻawa Elementary SchoolVII.C. Board Action on Finance and Infrastructure Committee recommendations concerning recommendations of the Committee on Weights XI regarding the Weighted Student Formula fund allocation for the 2020-2021 and 2021-2022 School YearsOppose/Comment
Hilary WhiteKaʻaʻawa Elementary SchoolVII.C. Board Action on Finance and Infrastructure Committee recommendations concerning recommendations of the Committee on Weights XI regarding the Weighted Student Formula fund allocation for the 2020-2021 and 2021-2022 School YearsComment
Nicole TamashiroWaiāhole Elementary SchoolVII.C. Board Action on Finance and Infrastructure Committee recommendations concerning recommendations of the Committee on Weights XI regarding the Weighted Student Formula fund allocation for the 2020-2021 and 2021-2022 School YearsOppose
Pauline YoshizumiPublicVII.C. Board Action on Finance and Infrastructure Committee recommendations concerning recommendations of the Committee on Weights XI regarding the Weighted Student Formula fund allocation for the 2020-2021 and 2021-2022 School YearsOppose
Michael Kirk-KuwayePublicVII.C. Board Action on Finance and Infrastructure Committee recommendations concerning recommendations of the Committee on Weights XI regarding the Weighted Student Formula fund allocation for the 2020-2021 and 2021-2022 School YearsOppose


III. Approval of Meeting Minutes of August 15, 2019

ACTION: Motion to approve the Finance and Infrastructure Committee Meeting minutes of August 15, 2019 (Takeno/Namauʻu). The motion carried unanimously with all members present voting aye.


IV. Discussion Items

Committee Chairperson Uemura asked Committee members to refer to their materials regarding the Department of Education’s (“Department”) fiscal reports as of June 30, 2019.

Committee Vice Chairperson Bruce Voss commented that carryover amounts have decreased within EDN 100 because schools are spending funds more efficiently. He asked why the Department carried over $7.1 million in EDN 150 and did not spend these funds during the fiscal year. Brian Hallett, Interim Assistant Superintendent and Chief Financial Officer, Office of Fiscal Services, explained that the Department carried over $7.1 million in salary funds, which equates on an annual basis to approximately 140 unfilled positions. Committee Vice Chairperson Voss asked about the Department’s plan to ensure that it fills these positions. He noted that the Legislature allocated funding for the Department to spend in high-need areas and might question why the Department carried over $7.1 million. Hallett explained that the Department is implementing a different approach for resource allocation similar to how it allocates Weighted Student Formula funding. He highlighted that schools will have the flexibility to purchase positions if schools are unable to fill positions and convert unfilled positions into operating or non-payroll funds.

Committee Member Catherine Payne asked if schools would be able to contract for services if they are unable to fill staffing gaps. Hallett explained that the Department’s expectation is that schools will convert funds for special education classroom positions and use the funds to ensure the provision of services.

Committee Chairperson Uemura commented that the Department’s $7.1 million carryover in EDN 150 is part of the carryover amount that the Department earmarked for special education service contract costs. He stated that the Department would have another carryover in the following fiscal year because it is duplicating costs. Hallett stated that this is possible. He explained that the Department is planning to have some level of carryover as a safety net as it transitions from allocating positions to dollars. He noted that it is possible that schools will expend all of their funding in areas of special education, which could lead to deficits. He stated that the Department does not want a zero-dollar balance by the end of the fiscal year because it hopes to have a cushion. Committee Chairperson Uemura asked about the Department’s carryover amount if it were to fill the 140 unfilled positions this fiscal year. Hallett noted that the Department would still have a $7 million carryover amount if it filled all 140 positions and did nothing else. Committee Chairperson Uemura asked for assurance that the Department plans to spend the $7.1 million carryover amount within EDN 150. Hallett confirmed that the Department plans to do so.

Christina Kishimoto, Superintendent, commented that the Department is creating an accountability structure and planning how to provide special education services with schools. She stated that districts are struggling to fill all special education positions, and schools are reviewing how to convert positions into additional educational assistant or teacher positions. She noted that the Department previously operated under a designation system, but flexibility will allow schools to build capacity. She stated that the Department’s intent is to provide flexibility because of issues regarding recruitment and retention rather than to divert focus away from special education teachers and support staff.

Committee Member Margaret Cox asked if the Department’s carryover amounts would remain within EDN 150 if the Department converts these amounts into operating funds. Hallett explained that the Department’s change regarding allocation would provide schools with flexibility to determine whether they should expend funds as salary or operating.

Committee Chairperson Uemura asked about the Department’s priority supported by centralized carryover to leverage funds within EDN 200 and 300 to cover part of the 2019-2020 fiscal year executive restriction. Hallett explained that the Department is using carryover amounts to help mitigate restrictions within those EDNs. Committee Chairperson Uemura stated that his understanding is that the Department does not recommend action on reductions or restrictions and would monitor the situation similar to what it did in the past. Hallett stated that the Department would bank these funds and confirmed that they are similar to a reserve.

Committee Chairperson Uemura noted that the Department has not expended its impact fee collection and asked about the Department’s plan for impact fee funds. John Chung, Public Works Manager, Project Management Section, Office of School Facilities and Support Services, explained that the Department is reviewing the accounts in which fees are located, the schools that could benefit from the use of these fees, impact fee amounts, and possible uses of these funds. Chung stated that the Department’s next step is to propose the expenditure of impact fees in its budget in accordance with statute. The Department is determining the projects for which it can leverage impact fees and fair share funds. He stated that the Department would incorporate expenditures in the next budget.

Committee Chairperson Uemura asked the Department to share reports it submits to the Legislature on impact fees with the Committee in future updates and reports. He stated that the Department has collected about $15 million in impact fees and noted that some schools could benefit from repair and maintenance (“R&M”) projects based on how the Department determines it could utilize these funds.

Committee Chairperson Uemura noted that the Department’s R&M backlog was $988 million and increased by $100 million. Chung explained that the Department was reviewing and vetting submitted projects for consideration at the time the Department last reported on its backlog. The Department determined that it would need to add a number of projects to its backlog rather than submit these projects as work orders, which is why the backlog increased. Chung noted that the R&M backlog is dynamic and can vary at any point in time throughout the year. Committee Chairperson Uemura asked whether the backlog increased because the Department did not record submitted projects. Chung explained that the Department recorded projects but had not yet classified them.

Committee Chairperson Uemura asked about the Department converting some R&M projects to capital improvement program (“CIP”) projects. Chung confirmed that the Department is reviewing a conversion. He noted that the Department shared its R&M backlog with the Legislature, and line-item CIP funds are funding some R&M projects. Committee Chairperson asked if the Legislature determines how to fund R&M projects. Chung explained that the Legislature made the determination in the instances of line-item CIP funds. He noted that it is out of the Department’s control to an extent, but the Department produces a list for line items that include schools’ needs.

Committee Vice Chairperson Voss asked about the Department’s expenditure plan for the R&M backlog this fiscal year. Chung stated that the Department expects its $988 million backlog to decrease. He stated that the Department is receiving condition and CIP line-item funds for R&M projects in fiscal year 2020 and executing projects, and it expects to see movement on its backlog. He noted that the Department’s report does not reflect work using the Job Order Contracting (“JOC”) method.

Committee Vice Chairperson Voss asked about the Department’s goal to reduce its R&M backlog during the current fiscal year. Chung stated that the Department has not established a number, and its goal is to reduce the backlog as fast as possible. He explained that it is difficult to establish a target because of variability in design cycles, permitting cycles, and construction cycles. He noted that permitting could range between a few months to a year, and construction could be delayed. Chung noted that it is a dynamic process, so the Department’s goal is to process as many projects as it can. Kishimoto stated that the Department’s immediate goal in the next few months is to execute $20 million using the JOC method and decrease the backlog.

Committee Chairperson Uemura asked if the Department has resources to manage R&M and CIP projects and noted that the Department’s answer to this question in the past has been that it does not have the appropriate resources. Chung explained that it is difficult for the Department to recruit architects and engineers because the Department is competing with the federal government and other state agencies. He noted that the Department has had to rely on consultant services to supplement staff shortages out of necessity until the Department is able to fill more positions.

Committee Chairperson Uemura asked about the costs for consulting services. Chung stated that the Department currently spends about $4 or $5 million per year on consultant services. Committee Chairperson Uemura asked if hiring challenges are due to a lack of qualified individuals or the Department’s salary structure. Chung stated that hiring challenges are due to both a lack of qualified individuals and salaries that are not competitive. He noted that private industries are facing similar challenges because of a market shortage. Committee Chairperson Uemura stated that the Department’s solution is not ideal but necessary to complete projects.

Committee Chairperson Uemura commented on the Department’s allotment balances. He asked how much of the balances the Department could use and how much it would need to return. Chung stated that he does not have this information but could provide it later. He explained that the Department does not have a mechanism through which it can reallocate individual line-item appropriations for another project, and it returns these funds if it completes projects under budget. However, the Department is able to reallocate remaining balances for lump sum appropriations. Committee Chairperson Uemura stated that he is interested in exact amounts as an additional source of revenue that the Department could use for its projects.


Committee Chairperson Uemura reviewed the Department’s plans to vacate its Young Street property. He noted that the Committee does not need to take action but could provide input or raise concerns if there are any. He stated that he agrees with the Department’s plans because the property does not belong to the Department, and the Department has no use for it.

Committee Member Payne noted that she believes that the City and County of Honolulu (“City”) purchased the property for an addition to Linekona Elementary School, not Lincoln Elementary School as indicated in the Department’s report, because that was the school next to the property in 1923.

Committee Vice Chairperson Voss asked about the failed legislative measure to transfer the property from the City to the State. Chung explained that the history of the property relates to the Act 155 program. The Department determined that the property was underutilized, and the Department could convert it to generate revenue. However, the City owns the property, and it identified a need for a fire station, was unable to identify other properties, and opposed a legislative measure to transfer the property to the State. Committee Vice Chairperson Voss asked about the Legislature’s reasons for not passing the bill. Chung explained that the Legislature agreed with the City that the property was appropriate for a fire station.

Committee Chairperson Uemura noted that the Committee previously discussed using the property as an Act 155 site but ultimately did not recommend that the Department move forward.


V. Recommendation for Action

Committee Chairperson Uemura stated that the Committee is considering action on new Board Policy 301-10, entitled “Equitable School Facilities” (“Board Policy 301-10”).

Committee Member Takeno moved to adopt new Board Policy 301-10 as described in the Department’s memorandum dated September 19, 2019. Committee Member Cox seconded.

Committee Chairperson Uemura stated that the new policy would enable the Department to complete all projects at its schools with the greatest needs. He noted that the Committee should focus on whether the policy is clear and meets the objectives of the Committee’s second strategic priority.

Committee Vice Chairperson Voss stated that the language of the policy is consistent with the Board and Department’s Strategic Plan and the Superintendent’s priorities. He expressed concern regarding implementation and noted that the Department’s materials indicate that it suspended the R&M prioritization process. He asked about the Department’s plans to complete a new prioritization process and develop a list that reflects the priorities of Board Policy 301-10. He noted that the objective of the policy is equity. Christine Shaw, Interim Assistant Superintendent, Office of School Facilities and Support Services, explained that the Department would draft criteria and the initial prioritization list for the Committee’s review by November under the current timeline that the Committee adopted. Chung explained that the Department first would need to determine prioritization for R&M through an asset management program where the Department would review the condition of facilities, where the needs are, and which facilities need the most help.

Committee Vice Chairperson Voss stated that Board Policy 301-10 intends to promote equity as it relates to schools with the greatest socioeconomic and academic needs. He asked how the Department would ensure that it achieved the objectives of the policy. Shaw explained that the Department is currently in the beginning stages and identifying socioeconomic indicators, such as Title I, Comprehensive Support and Improvement (“CSI”) and Targeted Support and Improvement (“TSI”) designations, and the need for additional support.

Committee Vice Chairperson Voss asked if the Department’s intent is to create and communicate a public list to achieve equity objectives. Shaw confirmed that this is the Department’s intent but noted that the list would need to be dynamic in case of emergencies. Committee Vice Chairperson Voss emphasized the importance of the Department communicating with the public as it developed an implementation plan and ensuring that it is advancing equity and listening to all voices. He highlighted that the Department's list needs to be public.

Kishimoto explained that the Department is establishing public-facing criteria, including measures and indicators. She noted that the Department and Committee would discuss projects and review alignment once the Department established criteria. She noted that Board Policy 301-10 provides the Department with structure, which it has not previously had.

Committee Member Cox asked if the Department would be able to complete its implementation plan by November. Shaw explained that the Department is following Committee Chairperson Uemura’s timeline listed in his memorandum. Committee Member Cox asked about written implementation plans and noted that the Department could request an extension. Shaw explained that the Department would need to present a timeline to the Committee in November per Committee Chairperson Uemura’s guidelines in his previous memorandum.

Committee Member Kawano noted that Board Policy 301-10 ensures completion of projects at schools with the greatest needs. He commented that the Department might not complete projects for schools at the bottom of the list unless it is an emergency. Shaw stated that the Department is attempting to address socioeconomic and equity components, but it still has an obligation to address health and safety. She explained that the Department is reviewing its methodology to ensure equity.

Committee Member Kawano commented that he does not know what changes the Department would need to make to the policy, but it is not equitable in its current state. Shaw stated that the Department would need to focus on implementation and review methodology to ensure that it does not focus on addressing needs at one or two schools.

Committee Chairperson Uemura stated that policies should be clear and well defined. He agreed with Committee Member Kawano and noted that the policy might not lead to equity because it does not provide clarity or direction. He added that the policy itself and the title of the policy do not align. Committee Chairperson Uemura emphasized that it is important for the Department to address schools with the greatest socioeconomic and academic needs, but it is also important that the Department not exclude schools that do not fall under these categories. He stated that Board Policy 301-10 is a new policy, and the Board should not tie it to other policies. Committee Chairperson Uemura asked if Jacobs Engineering would assist the Department with prioritization and noted that R&M issues are different across schools. He stated that the policy is not clear or concise and suggested that the Committee defer action.

Committee Vice Chairperson Voss stated that the intent of Board Policy 301-10 is within the third paragraph. He noted that the first two paragraphs are not clear or concise. He detailed Board and Department Strategic Plan alignment, prioritization of funding, and schools that have not had their needs met. Committee Vice Chairperson Voss stated that he does not want policy wordsmithing to cause delays in the Department addressing facilities in underserved areas. He stated that he prefers to move forward so that the Department could move forward with implementation.

Committee Chairperson Uemura explained that the Committee’s decision to defer would not delay implementation because the Department would need to return to present in November prior to implementing the policy. He stated that he does not want Board policies to lack clarity and cause confusion. Shaw explained that the Department attempted to define equity in the first two paragraphs of Board Policy 301-10 and address implementation in the third paragraph.

Committee Member Payne emphasized the importance of the Committee providing the Department with tangible direction and asked what is unclear about the Department’s definition of equity. Committee Chairperson Uemura explained that the Department defined equity as being fair. He stated that the policy does not address socioeconomic or academic needs, is not broad enough, and does not align to the title of the policy.

Committee Member Kawano stated that the Committee and Department would need to work on prioritization if it were to defer and determine how implementation would work prior to amending the policy. Committee Chairperson Uemura noted that the Department could present an amended policy at the Committee’s October 3, 2019 meeting.

Committee Vice Chairperson Voss stated that the policy intends to address the severe disparity between different socioeconomic areas and specific problems that the Board allowed to occur. He stated that he agrees with deferment and changes to the second paragraph but does not want the Department to lose the purpose of the policy.

Committee Chairperson Uemura suggested that the Department rename the title to align to the policy and confirmed that the Committee would defer action to its October 3, 2019 meeting to give the Department time to address the Committee’s concerns.

Committee Member Takeno requested to withdraw his motion. The Committee granted permission to withdraw the motion by unanimous consent.

ACTION: Motion to defer action on Board policy 301-10, entitled “Equitable School Facilities,” to the Committee’s October 3, 2019 meeting (Takeno/Cox). The motion carried unanimously with all members present voting aye.

Committee Member Cox moved to adopt the recommendations of the Committee on Weights XI (“COW XI”) regarding Weighted Student Formula (“WSF”) fund allocation for the 2020-2021 and 2021-2022 school years as described in the memorandum dated September 19, 2019. Committee Member Takeno seconded.

Committee Chairperson Uemura detailed that COW XI recommends that the neighbor island weighted factor be doubled from 0.004 to 0.008 beginning in the 2020-2021 fiscal year, additional funding approved by the Legislature be prioritized to increase support for English learner (“EL”) students beginning in the 2020-2021 fiscal year, and additional funding approved by the Legislature be prioritized to support homeless students at a weight of 0.20 beginning in the 2020-2021 fiscal year. He noted that COW XI recommends that the Department proportionally distribute funds between EL and homeless students’ weight if the Legislature allocates additional funding to the WSF program for the 2020-2021 fiscal year. Committee Chairperson Uemura reviewed COW XI’s supplementary recommendations, including proposals for adequacy, small schools, facilities, and recruitment and retention.

Committee Vice Chairperson Voss stated that the Committee should currently focus on COW XI’s proposed recommendations and discuss the supplementary recommendations later. Committee Member Cox agreed that the Committee should focus on the specific recommendations and noted that the Committee should discuss Title I funding allocations in the future.

Committee Member Kawano emphasized the importance of COW XI’s supplementary recommendation regarding academic and financial plans. He stated that alignment between both plans is necessary and noted that he would like the Committee to discuss and take action on this recommendation.

Committee Member Kili Namauʻu stated that she would like further discussion on COW XI’s supplementary recommendation regarding the Hawaiian Language Immersion Program.

Committee Chairperson Uemura stated that some topics Committee members raised relate to COW XI’s primary recommendations and that Board members should discuss the other topics later and perhaps in other committees. He stated that he would like the Committee to focus on COW XI’s primary recommendations regarding the proposed changes to the WSF.

Committee Vice Chairperson Voss stated that he supported COW XI’s recommendations regarding prioritizing additional funding for EL and homeless students. He stated that the modest increase to the neighbor island weighted factor might not be significant enough to address issues of disparity and disproportionate funding to neighbor island schools.

Committee Member Kawano detailed how schools use WSF and explained that the Department bases teacher cost on the average teacher salary in Hawaii rather than actual teacher salary costs. He noted that schools with below average teacher salaries, including neighbor island and rural schools, are subsidizing schools with above average salaries. He stated that application of the average is leading to a disparity and deficiency. Committee Member Kawano stated that he previously asked COW XI to review funding allocations to neighbor island and rural schools. He noted that the total funding to address disparity would be $13 million; thus, an allocation of $900,000 is inadequate.

Kishimoto explained that COW XI discussed average teacher salaries and determined that shifting funds was not a viable solution due to the bigger issue of the teacher shortage. COW XI recommends that the Department address these issues through recruitment and retention efforts. She noted that there are pros, cons, and national research regarding the usage of average teacher salaries, and COW XI committed to continue using average teacher salaries in the WSF because not doing so could create other problems. She explained that COW XI does not believe that the adjusted weight for neighbor islands is sufficient, but to adjust it further would take away funding from other schools. She detailed that COW XI made an effort to adjust the weight within a fixed pot while taking into consideration shipping costs, recruitment, and other areas. She stated that the Board and Department might need to request additional funds from the Legislature in order to address issues of disparity through WSF.

Committee Member Kawano detailed that the Department’s bucket is $760 million and $13 million is less than two percent of that total. He stated that COW XI should allocate $13 million to neighbor island schools to address fairness and equity issues within the WSF. He stated that the WSF is not intended to address the teacher shortage and reiterated that the usage of average teacher salaries causes inequity.

Committee Vice Chairperson Voss agreed with Committee Member Kawano and asked why COW XI did not make a similar recommendation for neighbor island and rural schools that it did for EL and homeless students’ weights in order to achieve equity.

Kishimoto explained that COW XI discussed focusing on student weights and reviewed teacher weight models. She stated that COW XI would need to revisit discussions regarding average teacher salaries versus actual salaries and consider many factors in order to redistribute funds around equity. She noted that previous COWs had similar discussions, and COW XI determined that it would continue to weigh teachers in a way that does not influence hiring based on teacher costs. She explained that the need for highly qualified and certified teachers on neighbor islands drives inequity.

Hallett explained that COW XI deliberated, attempted to strike the right balance, and worked within a fixed pot. He stated that COW XI would reduce the value of one student by five dollars for all students statewide if it were to raise the neighbor island weight an additional $18 per neighbor island student. He stated that it was a difficult decision because small schools on Oahu are struggling and highlighted that these issues relate to funding adequacy.

Kishimoto detailed that COW XI discussed threshold enrollments for viable small schools and recommends that the Board review and establish a policy for small school equity. She detailed that Board policy could direct the Department to review various action steps when schools fall below threshold enrollments, including closure of schools, combining of schools, additional funding for schools, or implementation of a different funding formula. She noted that the Board should create a structured way in which to review these situations so that COW XI does not assume responsibility.

Committee Chairperson Uemura expressed concern over the Department asking for additional funding and noted that the Department should determine its exact funding needs to educate its students. He asked what WSF covers, what percentage covers educational funding requirements, and what the effects would be if COW XI adjusted the neighbor island weighted factor. He stated that the Committee and Department could not ask COW XI to reallocate funding to neighbor island schools until it determines how much it would need to reallocate.

Hallett explained that COW XI is proposing an increase to the neighbor island weighted factor, a $10 million increase in EL student weight, and a $2 million increase in homeless student weight. Committee Chairperson Uemura asked if increasing support for EL and homeless students is subject to funding. Hallett confirmed that the increase is subject to additional funding approved by the Legislature. He stated that the Committee would review these requests when it reviews the Department’s supplemental budget requests at its October 3, 2019 meeting.

Committee Chairperson Uemura ask what the COW XI report’s statement regarding the distribution of WSF appropriations to support school operations in a manner that reflects the relative cost of educating a student means. Hallett explained that COW XI is proposing to distribute funds based on the budget it has rather than on the budget it needs. Kishimoto stated that the Department discussed requesting funding from the Legislature to support an adequacy study to review WSF and determine which factors define adequacy.

Committee Chairperson Uemura stated that he does not necessarily support an adequacy study. He emphasized the importance of the Department knowing how much it needs to educate its students. He stated that the Department budgets to what it receives rather than to what the Department needs. He stated that an adequacy study would not be helpful if the Department has no baseline to which to compare.

Committee Vice Chairperson Voss emphasized the importance of the Department requesting additional funding from the Legislature for EL and homeless students. He stated that the Department’s recommendation regarding neighbor islands does not address inequity.

Committee Member Kawano suggested that the Committee advise COW XI to revisit the weighted factor for neighbor island schools and determine how to reallocate $13 million equitably. He noted that WSF should recognize differences between neighbor island schools and rural schools on Oahu. Committee Chairperson Uemura added that the Committee previously asked COW XI to address inequity and ensure that WSF recognized small and rural schools.

Committee Member Cox asked about weighted factors for small schools. Hallett explained that the Department details the WSF on its website, and COW XI did not include these details in its report. He noted that the current formula uses base funding to help smaller schools.

Committee Chairperson Uemura asked about the three-year reserve. Hallett explained that $250,000 for eight schools would expire in 2022. Committee Chairperson Uemura stated that this does not address Committee Member Kawano’s concerns. He asked how this would affect the WSF and noted that there should be a higher ratio for small and neighbor island schools. Kishimoto explained that a weight of one follows each child, and COW XI provides additional weights to students. She explained that the proposed changes shift the weights with the differentials. Committee Chairperson Uemura asked if the Department has reviewed whether the existing formula is adequate.

Committee Member Kawano asked about different starting weights for neighbor island and rural schools. Kishimoto explained that Committee Member Kawano’s suggestion would result in small and rural schools on Oahu losing funding. She stated that the Board and Department would need to have a broader discussion regarding reallocating existing funds versus asking the Legislature for additional funding to support differential weights. Committee Member Kawano stated that the Department could ask the Legislature for funding to address inequity or to assist small schools on Oahu. He stated that he would support shifting the weights to ensure equity and asking the Legislature for additional funding to help rural schools on Oahu.

Committee Chairperson Uemura stated that Committee Member Kawano is proposing that COW XI revisit weighted factors for neighbor island schools. He stated that the Committee could either approve COW XI’s full report, which includes Attachments A and C; approve COW XI’s recommendations in Attachment A; or request that COW XI review its recommendations and determine whether it could revise its weights.

Mitchell Otani, COW XI Chairperson and Kalani High School Principal, detailed the history of WSF. He explained that COW XI makes changes as long as changes to one area do not severely negatively affect another area. He noted that COW XI had in-depth discussions regarding small, rural, and neighbor island schools and tried to make its weighted factors as fair and equitable as possible. He stated that COW XI set weights within the funds it has and cannot set weights based on funds it does not have.

Committee Chairperson Uemura asked about Otani’s thoughts regarding Committee Member Kawano’s suggestions. Otani noted that COW XI could review its recommendations if the Committee tasked it to review weighted factors for neighbor island schools. He stated that small schools on Oahu would lose funding for basic needs if COW XI were to revise its recommendations. He noted that more funding is necessary to raise funding for all schools. Committee Chairperson Uemura asked about Otani’s budget plans for his school. Otani explained that his school prepares its budget based on both WSF and its educational objectives.

Kishimoto explained that the Committee’s role is to accept or defer COW XI’s proposed changes. She detailed that COW XI’s report includes documentation of discussions and supplemental recommendations. However, the Committee is not to consider COW XI’s supplemental recommendations at this time.

Committee Chairperson Uemura confirmed that the Committee is to consider COW XI’s three proposed changes to WSF. The Committee could also accept two of the recommendations and task COW XI with revisiting its proposed change regarding the neighbor island weighted factor.

Committee Vice Chairperson Voss stated that Committee Member Kawano would like COW XI to revisit its recommendation regarding neighbor island and rural schools and determine whether there is an equitable manner in which to address funding deficiencies.

Committee Member Cox requested to withdraw her motion. The Committee granted permission to withdraw the motion by unanimous consent.

ACTION: Motion to adopt COW XI’s two recommendations for the 2020-2021 and 2021-2022 school years that would prioritize additional funding, subject to approval by the Legislature, to (1) increase support for EL students and (2) support homeless students at a weight of 0.20, beginning in the 2020-2021 fiscal year as described in the memorandum dated September 19, 2019 (Voss/Payne). The motion carried unanimously with all members present voting aye.

Committee Member Kawano moved to (1) defer action on COW XI’s third recommendation that the neighbor island weighted factor be doubled from 0.004 to 0.008 beginning the 2020-2021 fiscal year and (2) task COW XI to review the neighbor island weighted factor. Committee Vice Chairperson Voss seconded.

Committee Member Payne expressed concern that COW XI consists of volunteers and a redetermination of the neighbor island weighted factor might affect COW XI’s other recommendations, weights, and schools that depend on WSF determinations to plan. She stated that the Committee and Department would need to discuss deficiencies and determine how to achieve equity without negatively affecting Oahu schools.

Committee Member Takeno agreed with Committee Member Payne and expressed concern that changes to COW XI’s recommendation might result in negative affects to other groups that the Committee is unable to foresee. He stated that schools might experience shortfalls and highlighted that stakeholders participating in COW XI were diverse and represented many areas.

Committee Chairperson Uemura stated that additional changes to the WSF might affect academic programs because principals would budget to what they plan to receive.

Kishimoto stated that COW XI determined that it was necessary to shift funding from Oahu to neighbor island schools, which is why it doubled the weighted factor. COW XI also determined that it would further review the neighbor island weighted factor and adequacy in its second year.

Committee Member Namauʻu stated that she does not support Committee Member Kawano’s recommendation. She highlighted that the Committee and Department would need to discuss and determine how to request additional funding from the Legislature to achieve equity and address the specific needs of schools.

Committee Vice Chairperson Voss stated that COW XI missed an opportunity to address deficiencies and inequity. He stated that COW XI could adjust the weighted factor for neighbor island schools, identify the amount of funding schools need, and request that amount from the Legislature. Committee Chairperson Uemura agreed that the Department would need to determine how much it would need to successfully request funding from the Legislature.

Committee Member Kawano asked about the Department’s approved budget. Hallett explained that the Department received appropriations for WSF, and it is trying to prepare financial plans to issue on November 1, 2019 so that the Department could tentatively allocate funding based on projected enrollment counts. He noted that the Department would distribute additional funds from the Legislature once it finalizes enrollment counts. Committee Member Kawano asked about the Department’s timeline. Hallett explained that the Legislature approves the appropriations in April.

Committee Member Kawano requested to withdraw his motion. The Committee granted permission to withdraw the motion by unanimous consent.

Committee Member Kawano moved to triple the neighbor island weighted factor from 0.004 to 0.012 beginning in the 2020-2021 fiscal year. Committee Vice Chairperson Voss seconded.

Hallett explained that an $18 increase to the neighbor island weight would result in a $5 reduction for every other student. Committee Member Kawano proposed that the Committee accept his recommendation regarding the neighbor island weighted factor and allocate additional funds to neighbor island schools if the Legislature approves additional funds for the WSF program. He stated that this recognizes that an additional $2 million for neighbor island schools, as a result of tripling the neighbor island weighted factor, is insufficient.

Committee Member Payne asked about the effects of Committee Member Kawano’s proposal. Hallett explained that COW XI’s role is to make recommendations, and the Committee’s role is to act upon these recommendations. He noted that COW XI would not necessarily need to engage in more work because of Committee Member Kawano’s proposal, but it could negatively affect schools that might lose significant funding.

Committee Member Payne stated that the Committee should consider how a loss of funding would severely negatively affect rural schools on Oahu and result in long-term consequences for struggling schools and students. Committee Member Takeno stated that Committee Member Kawano’s proposal would not affect COW XI. He detailed that the Department would need to adjust its allocation for each school, and schools would need to determine how to continue to operate.

The motion to triple the neighbor island weighted factor from 0.004 to 0.012 beginning in the 2020-2021 fiscal year (Kawano/Voss) failed to carry with Committee Members Cox, Namauʻu, Payne, and Takeno voting nay and Committee Members Kawano and Voss voting aye.

ACTION: Motion to adopt COW XI’s recommendation for the 2020-2021 and 2021-2022 school years that doubles the neighbor island weighted factor from 0.004 to 0.008 beginning the 2020-2021 fiscal year (Payne/Cox). The motion carried with Committee Members Cox, Namauʻu, Payne, and Takeno voting aye and Committee Members Kawano and Voss voting nay.

Committee Chairperson Uemura stated that the Committee has to consider action on the Department’s operating budget restriction implementation for the 2019-2020 fiscal year.

Committee Member Takeno moved to approve the Department’s operating budget restriction implementation for the 2019-2020 fiscal year, as described in the Department’s memorandum dated September 19, 2019. Committee Member Payne seconded.

Committee Chairperson Uemura asked about the possibility of the Governor not lifting restrictions and the Department experiencing a shortfall. Hallett stated that it is always a possibility. He noted that the Governor might release the five percent contingency restriction later. He detailed findings of the Council on Revenues and highlighted that the Department is optimistic but cautious.

Committee Vice Chairperson Voss stated that he understands the Department’s recommendations and asked about the consequences for EDNs 200 and 300 if the Governor does not lift restrictions. Hallett stated that the Department is unsure, but EDN 200 includes the Department’s testing budget and complex area support, which are critical areas.

Committee Vice Chairperson Voss asked about the Department’s plan if the Governor does not lift restrictions. Kishimoto stated that the Department is monitoring the situation each quarter and reviewing its savings. She stated that the Department does not intend to reduce positions. Kishimoto stated that the Department could provide the Committee with a mid-year report. Committee Vice Chairperson Voss stated that the Department could update the Committee dependent upon the Council on Revenues forecast.

ACTION: Motion to approve the Department of Education’s operating budget restriction implementation for the 2019-2020 Fiscal Year as described in the Department’s memorandum dated September 19, 2019 (Takeno/Payne). The motion carried unanimously with all members present voting aye.

VI. Adjournment

Committee Chairperson Uemura adjourned the meeting at 1:32 p.m.