STATE OF HAWAII
BOARD OF EDUCATION
GENERAL BUSINESS MEETING

MINUTES

Queen Liliuokalani Building
1390 Miller Street, Room 404
Honolulu, Hawaii 96813
Thursday, November 17, 2022

PRESENT:
Bruce Voss, Chairperson
Kaimana Barcarse, Vice Chairperson
Bill Arakaki
Shanty Asher
Lynn Fallin
Makana McClellan
Lauren Moriarty
Kili Namauʻu

EXCUSED:
Ken Kuraya

ALSO PRESENT:
Colonel Michael Minaudo, Military Representative
Keith Hayashi, Superintendent, Department of Education
Sean Bacon, Interim Assistant Superintendent, Office of Talent Management, Department of Education
Brian Hallett, Assistant Superintendent, Office of Fiscal Services, Department of Education
Yvonne Lau, Interim Executive Director, State Public Charter School Commission
PJ Foehr, Interim Deputy Director, State Public Charter School Commission
Randall Tanaka, Assistant Superintendent, Office of Facilities and Operations, Department of Education
Curt Otaguro, Deputy Superintendent of Operations, Department of Education
Alison Kunishige, Executive Director
Kenyon Tam, Board Analyst
Regina Pascua, Executive Secretary
Lady Garrett, Secretary


I. Call to Order

Board Chairperson Bruce Voss called the Board of Education (“Board”) General Business Meeting to order at 1:30 p.m. Board Chairperson Voss, Board Vice Chairperson Kaimana Barcarse, and Board Members Bill Arakaki, Shanty Asher, Lynn Fallin, Makana McClellan, Lauren Moriarty, and Kili Namau‘u were present.


II. Public Testimony on Board of Education (“Board”) Agenda Items

Board Chairperson Voss called for public testimony.

Susan Pcola-Davis, member of the public, testified on agenda item III.A, entitled “Investigative committee (a permitted interaction group pursuant to Hawaii Revised Statutes Section 92-2.5(b)(1)) concerning Board policy positions, legislative proposals, and legislative reports for 2023 Legislative Session: findings and recommendations on Board legislative reports for the 2023 Legislative Session (annual charter school report).” She testified in support of a charter school task force and for the Board to advocate for charter schools.

Ryan-Nicholas Luther, member of the public, testified on agenda item V.A, entitled “Board Action on findings and recommendations of Investigative Committee (a permitted interaction group pursuant to Hawaii Revised Statutes, Section 92-2.5(b)(1)) investigating issues concerning Board policy positions, legislative proposals, and legislative reports for 2023 Legislative Session: Board policy positions and legislative proposals for the 2023 Legislative Session.” He testified that individual parent stakeholders were not represented in the groups that the investigative committee met with, just parent organizations, questioned where funding will come from when Elementary and Secondary School Emergency Relief (“ESSER”) funding is gone, and commented on the Board policy positions.

Cheri Nakamura, Hui for Excellence in Education (“HE‘E”) Coalition, testified on agenda item V.A, entitled “Board Action on findings and recommendations of Investigative Committee (a permitted interaction group pursuant to Hawaii Revised Statutes, Section 92-2.5(b)(1)) investigating issues concerning Board policy positions, legislative proposals, and legislative reports for 2023 Legislative Session: Board policy positions and legislative proposals for the 2023 Legislative Session.” She testified that the HE‘E Coalition supports the Board policy positions, highlighted its written comments on career and technical education (“CTE”), and asked whether the system design should allocate more resources to elementary schools, ensuring that the same students have a stronger foundation when they enter high school so they can successfully access these CTE opportunities.

Cheri Nakamura, HE‘E Coalition, testified on agenda item V.B, entitled “Board Action on compensation adjustments for Assistant Superintendent of the Office of Fiscal Services and Complex Area Superintendents of Aiea-Moanalua-Radford, Campbell-Kapolei, Farrington-Kalani-Kaiser, Hana-Lahaina-Lanai-Molokai, Hilo-Waiakea, Honokaa-Kealakehe-Kohala-Konawaena, Kailua-Kalaheo, Kaimuki-McKinley-Roosevelt, Leilehua-Mililani-Waialua Complex Areas.” She testified that the HE‘E Coalition stands on its written testimony and hopes the Board would consider its questions.

Ryan-Nicholas Luther, member of the public, testified on agenda item V.C, entitled “Board Action on compensation adjustment for Department of Education employee excluded from Bargaining Unit 6: Administrative Assistant to the Superintendent (Chief of Staff).” He asked why individuals are getting salary increases when the system is failing on basics, like infrastructure and facilities, testified that this is not a sustainable system that supports students and that if information on Board meetings were provided to parents, the Board would hear objections.

Ryan-Nicholas Luther, member of the public, testified on agenda item VII.B, entitled “Update on Department of Education’s repair and maintenance (‘R&M’) and capital improvement programs: quarterly report.” He testified on the use of funds, how using funds to create meeting rooms fail to address health and safety issues in schools, and commented on the level of specificity and content of the report.

Mara Hanson, member of the public, testified on agenda item VII.B, entitled “Update on Department of Education’s repair and maintenance (‘R&M’) and capital improvement programs: quarterly report.” She questioned the use of these funds for Corsi-Rosenthal boxes and purchasing the former St. Francis school property instead of using them for student health and safety.

Board 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.)


III. Reports of Board Committees, Board Members, and Superintendent

Board Member and 2023 Legislative Investigative Committee Chairperson Arakaki presented on the committee’s findings and investigations at the Board’s October 20, 2022 General Business Meeting. He stated that the only legislative report due from the Board is the annual report on charter schools, which is attached to the committee’s report. Board Member and 2023 Legislative Investigative Committee Chairperson Arakaki stated that Board members cannot discuss the report today, due to Sunshine Law requirements, but to take time to read it and be prepared to discussed at the next Board meeting.


Board Member Moriarty reported that the Niu Valley Middle School students were enthusiastic about the new world languages building, that it is the first building in Hawaii designed to use passive ventilation, and that it captures a sense of culture and place.

Board Member Arakaki reported that he provided material included in an attachment to the Board member report memorandum, which details the National Association of State Boards of Education (“NASBE”) what was covered at the conference and his takeaways. He highlighted the Read On Arizona program where the district partnered with others to focus on literacy from preschool through third grade, which has a goal of ensuring that students are proficient in reading by third grade. Board Member Arakaki explained that the term “collective impact work” was used frequently when referring to the success of the Arizona program because all of the stakeholders had one vision and used common data to work towards this goal. He detailed that he met with other board members from boards of education nationwide, which helped him to better understand board member roles and how to support education. Board Member Arakaki stated that he included links to presentations in report attachment and brought back hard copies of the material to share with Board members.

Board Member Fallin stated that she hopes that in the future more Board members get to attend the NASBE conference. She shared that a conference theme was the effective use of data and information for planning and decision-making and that teacher recruitment and retention is an area of great interest. Board Member Fallin stated that there was a focus on using data to determine where and why there are teacher shortages, whether it is a recruitment problem, and understanding teacher demographics. She stated that using this data, board members and departments can focus, plan, and target their efforts to address the teacher shortage issue. Board Member Fallin shared that NASBE asked board members to make a commitment to follow-up after the conference, so she met with Sean Bacon, Assistant Superintendent, Office of Talent Management, to share this information.

Board Member Namau‘u reported on her visit to that Maunaloa Elementary, Molokai Middle, and Molokai High Schools were wonderful hosts and that people were friendly and generous. She Noted that Molokai Middle School has inadequate facilities.

Board Member Asher reported that she was impressed what Maunaloa Elementary, Molokai Middle, and Molokai High Schools did with the limited resources they had and that all the principals were homegrown.

Board Member Fallin reported that when she visited Maunaloa Elementary, Molokai Middle, and Molokai High Schools she noted the lack of health services for students, the pride in their independence, and their determination to get things done no matter the challenge.

Board Member Fallin reported that when she visited Kaimiloa Elementary School with Sean Tajima, Campbell-Kapolei Complex Area Superintendent, she met with principals at Tajima’s monthly complex area principal meeting where they discussed things like high teacher turnover rates.


IV. Public Testimony on Board Agenda Items

Board Chairperson Voss called for public testimony.

Cynthia Bartlett, Moms for Liberty Honolulu County, testified on agenda item
VII. B., entitled “Update on Department of Education’s repair and maintenance (‘R&M’) and capital improvement programs: quarterly report.” She testified that the United Nations and non-profits are pushing the new social-emotional learning (“SEL”) on the states, questioned whether SEL is a school’s responsibility, and asked that the Board be aware of the data assessment companies that SEL is tied into and the data that they are using to track students.

Susan Pcola-Davis, member of the public, testified on agenda item V.A, entitled “Board Action on findings and recommendations of Investigative Committee (a permitted interaction group pursuant to Hawaii Revised Statutes, Section 92-2.5(b)(1)) investigating issues concerning Board policy positions, legislative proposals, and legislative reports for 2023 Legislative Session: Board policy positions and legislative proposals for the 2023 Legislative Session.” She testified that Kaiapuni (Hawaii language immersion) schools should not be subject to kindergarten entry assessment requirements, that these schools should be provided with the opportunity to develop a relevant assessment, and testified on the importance of early learning.

Susan Pcola-Davis, member of the public, testified on agenda item V.B, entitled “Board Action on compensation adjustments for Assistant Superintendent of the Office of Fiscal Services and Complex Area Superintendents of Aiea-Moanalua-Radford, Campbell-Kapolei, Farrington-Kalani-Kaiser, Hana-Lahaina-Lanai-Molokai, Hilo-Waiakea, Honokaa-Kealakehe-Kohala-Konawaena, Kailua-Kalaheo, Kaimuki-McKinley-Roosevelt, Leilehua-Mililani-Waialua Complex Areas.” She testified on the different responsibilities of the complex area superintendents (“CAS”) and assistant superintendents (“AS”) and questioned why the proposed salaries would be the same.

Susan Pcola-Davis, member of the public, testified on agenda item VII.B, entitled “Update on Department of Education’s repair and maintenance (“R&M”) and capital improvement programs: quarterly report.” She testified on the amount of unspent capital improvement funds and questioned whether the Department of Education (“Department”) is using funds appropriately.

Board Member Asher left the meeting at 2:30 p.m.


V. Action Items

Board Vice Chairperson Barcarse moved to adopt the Board policy positions for the 2023 Legislative Session attached as Exhibit A to 2023 Legislative Investigative Committee Chairperson Arakaki’s memorandum dated October 20, 2022. Board Member Fallin seconded.

Board Member and 2023 Legislative Investigative Committee Chairperson Arakaki noted that, in accordance with the testimony today, the committee needs to look at who the Board needs to meet with and noted that the Board was not able to have these kinds of in-person meetings during the pandemic, so Board members are working on building and strengthening relationships.

Board Chairperson Voss noted the legislature’s role in helping to coordinate early learning efforts.

Board Chairperson Voss called for a roll call vote on the motion. The motion carried unanimously with all members present voting aye (Board Vice Chairperson Barcarse and Board Members Arakaki, Fallin, McClellan, Moriarty, and Namauʻu).

ACTION: Motion to adopt the Board policy positions for the 2023 Legislative Session attached as Exhibit A to 2023 Legislative Investigative Committee Chairperson Arakaki’s memorandum dated October 20, 2022 (Barcarse/Fallin). The motion carried unanimously with all members present voting aye.


Board Chairperson Voss called on Keith Hayashi, Superintendent, and Sean Bacon, Interim Assistant Superintendent, Office of Talent Management, to present the Department’s recommendation on the compensation adjustments for assistant superintendents and complex area superintendents.

Hayashi acknowledged the compensation concerns of Department employees, which were shared at community meetings. He noted that Hawaii Government Employee Association (“HGEA”) and United Public Worker (“UPW”) union members received negotiated salary increases, which were retroactively applied. Hayashi stated that teachers who are receiving compression adjustments would begin seeing these increases in tomorrow’s paycheck. He expressed his commitment to work together on compensation issues. Hayashi stated that he needs to level set the salaries for CASs and asked for a salary of $175,000 for every CAS.

Board Member Asher returned to the meeting at 2:37 p.m.

Hayashi stated that with this salary level, he would be better prepared to put leadership in place. He stated that there would be subsequent increases to CAS salaries following their evaluations. Hayashi stated that a 2020-2021 salary study shows that the median salary of an AS is $180,975 and that the requested adjusted salary falls under this median and within the salary range the Board approved on May 5, 2022. He stated that many CASs have dedicated years of service to the Department, oversee multiple schools, and handle complex issues. Hayashi stated that the salaries need to be commensurate with their duties. He shared that principals have stability and salary predictability, but CASs are at-will employees and their salaries are set by the Board. Hayashi stated that the total annual cost for his proposal is $161,412 and that the Department can accommodate these adjustments with general funds in current and upcoming years. He stated that the Department will not need to use any program funds to accommodate these increases. Hayashi stated that, as superintendent, he needs the right people in place so he can establish a strong leadership team. He stated that CASs have moved the public education system forward and should be compensated. Hayashi stated that this salary increase should increase the CAS pool and expand the pipeline for leadership and growth.

Board Chairperson Voss clarified that Hayashi’s initial request was for salary increases for ASs and CASs, but noted that it was his understanding that Hayashi was withdrawing request for salary increases for ASs and the chief of staff position and that he would resubmit these requests at another meeting. Hayashi confirmed Board Chairperson Voss’s understanding.

Board Vice Chairperson Barcarse moved to (1) approve a one-time salary adjustment of the salaries for Aiea-Moanalua-Radford Complex Area Superintendent John Erickson, Campbell-Kapolei Complex Area Superintendent Sean Tajima, Farrington-Kalani-Kaiser Complex Area Superintendent Rochelle Mahoe, Hana-Lahaina-Lanai-Molokai Complex Area Superintendent Rebecca Winkie, Hilo-Waiakea Complex Area Superintendent Esther Kanehailua, Honokaa-Kealakehe-Kohala-Konawaena Complex Area Superintendent Janette Snelling, Kailua-Kalaheo Complex Area Superintendent Lanelle Hibbs, Kaimuki-McKinley-Roosevelt Complex Area Superintendent Linell Dilwith, and Leilehua-Mililani-Waialua Complex Area Superintendent Robert Davis to $165,000, effective retroactively as of July 1, 2022, and (2) direct the Department to develop and present to the Board a comprehensive system for determining complex area superintendent salaries based on experience, performance, and levels of responsibility and propose an amendment to the Board's leadership salary structure recommending a new salary range for complex area superintendents no later than June 30, 2023. Board Member Fallin seconded.

Board Vice Chairperson Barcarse explained the motion that he made. He stated that he recognizes that each complex area is different and that the CASs have differing levels of experience. Board Vice Chairperson Barcarse stated that the $165,000 proposal will effectively set the floor of a new salary range. He stated that he felt comfortable with $165,000 as a starting point and asking Hayashi to come back with a comprehensive system based on factors like experience, performance, and responsibilities (complex size, challenges, and others), which could result in further compensation increases and a new salary range.

Board Chairperson Voss asked whether setting a $175,000 floor would leave little room in the CAS salary range for movement.

Board Member McClellan asked whether Hayashi can provide information on how much experience each CAS has. Hayashi stated that he does not have the years of experience for each CAS with him, but that it is substantial and that while they vary in years of experience, they are all effective. He stated that if they are not effective, they are at-will employees, and he can make his decisions at that point. Hayashi stated that each complex area is very different, but all the CASs do well and take care of issues of their complex areas. He stated that the number of schools in a complex area does not necessarily equal a higher level of responsibility and that complex areas vary in size.

Bacon asked for clarification of what kind of experience information Board Member McClellan is interested in. Board Member McClellan clarified that she is asking for years of experience both as a principal and CAS. She asked whether any of the CAS are new to being a principal or CAS. Bacon stated that the CAS with the least amount of experience has been a CAS for 1.5 years.

Board Member Fallin stated that she wants to maintain the current Board policy, which is not one size fits all, but is instead merit and performance based. She asked whether every CAS would start at $165,000, regardless. Hayashi stated that the request is for every CAS to receive a salary of $175,000 and then increase their salaries based on various indicators. Board Member Fallin clarified that additional compensation going forward would be performance based. Hayashi responded that it is difficult to recruit seasoned principals into CAS positions because of the additional responsibilities that CASs have.

Board Member Fallin pointed out that the memorandum states that everyone got additional compensation through collective bargaining, so the focus is on those who were not covered by collective bargaining. She stated that she struggles with a salary system where people have different experience levels but the pay is the same. Board Member Fallin stated that once there is a starting point for salaries, Hayashi needs to look at the differences between complex areas and whether he needs flexibility in the salary range, which he could get by adjusting the starting point for salaries.

Board Vice Chairperson Barcarse clarified that there are multiple issues here. He reiterated how much he appreciates CASs and that he wants fair compensation for them. Board Vice Chairperson Barcarse stated that with a base salary (either Hayashi’s recommended $175,000 or the motion on the floor, which is $165,000), Hayashi has the opportunity to come back to the Board and propose differentiated salaries based on criteria. He stated that if the motion passes, CASs would receive a retroactive pay increase to $165,000 and that if Hayashi comes back and recommends paying CASs different salaries, that would be a second possible increase. Board Vice Chairperson Barcarse stated that he wants to elevate CASs, but that Hayashi needs to provide a methodology and comprehensive system based on at least three criteria that recognizes things like experience and complex area characteristics. He stated that paying all CASs $165,000, effectively raises the floor of the salary range to $165,000.

Board Member Fallin stated that she is supportive of Board Vice Chairperson Barcarse’s motion, and provided some thoughts regarding possible criteria. She stated that Hayashi could use data to look at hard-to-staff locations because it might be more difficult to fill positions in some areas. Board Member Fallin asked that Hayashi consider criteria relating to rural and hard-to-staff areas.

Board Chairperson Voss asked whether Bacon understood the concept that Board members were describing. He stated that CASs work hard all the time and are critical to the public education system. Board Chairperson Voss stated that he is trying to be faithful to the Board policy, which looks at performance, but that the comprehensive system Board members are describing also takes into account the complexity of the complex area and other factors. He stated that he wants Hayashi to raise CAS salaries promptly and asked how long before the Department will come back with the comprehensive system requested so the Board can consider raising CAS salaries above $165,000. Bacon asked for clarification before answering and stated that he would like to be able to sit down with a few Board members to discuss this. Bacon stated that February or March would be a reasonable time period. Board Chairperson Voss asked whether the further adjustments would be retro to July 1, 2022, which Bacon confirmed.

Board Chairperson Voss stated he would be happy to work with Bacon on a comprehensive system.

Board Member Arakaki stated that, as a former CAS, the immensity of the work and time commitment is unreal. He said that while Board members say that they know how hard the work is, they do not actually know until they sit in the CAS seat. Board Member Arakaki stated that the proposal is about starting pay at a level comparable to similar positions nationwide. He stated that when he first started as a CAS, he did not ask about pay and his wife pointed out that he was making less than he did as a principal. Board Member Arakaki asked that the Department do further research to ensure it can retain CASs and noted that there are lot of CASs who are only appointed on an interim basis. He stated that the Department needs to develop a compensation system that encourages principals to become CASs. Board Member Arakaki stated that inflation and other factors impact the effectiveness of these salary increases and that the Department needs to do this right away.

Board Member McClellan stated that she has seen the work CASs do first hand and that there is value in providing CASs with higher compensation that is comparable to national standards. She noted that ​Esther Kanehailua, Hilo-Waiakea CAS, must spend a lot on gas to travel her complex area because of the large geographic area. Board Member McClellan stated that it is not fair if an elementary school principal can make $180,000, but a CAS that oversees multiple schools is only getting an increase to $175,00. She stated that it is also not fair that someone new gets paid the same amount as someone with years of experience. Board Member McClellan stated that raising CAS starting salaries to $175,000 when elementary school principals make more only compounds the issue. She stated that she would not want a CAS to leave to become an elementary school principal because he or she can make more money.

Board Member Asher asked for the maximum salary a principal can make. She stated that Linell Dilwith, Kaimuki-McKinley-Roosevelt CAS, oversees a lot of schools, but a principal only oversees one. Board Member Asher asked what a fair starting salary is. She stated that the CASs should not all be paid the same, but that she is fine with setting a starting salary. Bacon responded that in Hayashi’s memorandum, page 4, the table shows that the highest paid principal makes $198,000 and that there are three to four principals that make that salary.

Colonel Michael Minaudo, Military Representative stated that, if it is not already in the data provided, it is important to understand the statistics regarding principals that moved to CAS positions and took a pay cut to do that. Bacon stated that the Department’s current policy is that there is a CAS salary range and that any principal that moved into a CAS position could maintain their principal salary.

Bacon stated that if Board members want to set a base salary, the Department would consider a system similar to the one that it uses to pay teachers differentials, which has different tiers and categories.

Board Vice Chairperson Barcarse stated that the current CAS salaries range from $145,000 to $164,000 and that the proposal is to raise the base of the salary range, but not just make it a one-time across the Board increase. He clarified that what Board members are asking for is for the Department to propose a comprehensive system that uses criteria to determine different salaries for CASs and a new salary range. Board Vice Chairperson Barcarse stated that he believes that it is likely that once there is this comprehensive system and criteria is considered, some CASs will make more than $175,000. He stated that the intent of this motion is to pay CASs fairly and appropriately. Board Vice Chairperson Barcarse stated that if $165,000 is the new floor, Hayashi will need to reset the ceiling.

Board Chairperson Voss stated that there needs to be a balance between everyone getting compensated fairly and paying people based on performance. He stated that he shares Board Vice Chairperson Barcarse’s expectation that some CASs would be paid more than $175,000. Board Chairperson Voss stated that it is important that there is a solid foundation for these salary increases because this is an allocation of resources, so it cannot be arbitrary and he noted that perception matters.

Board Member Fallin stated that as the Finance and Infrastructure Committee (“FIC”) Chair, she needs to fulfill her responsibility and that she needs justification for why this is necessary, which includes the issue of principals making more than CASs. She stated that this kind of information helps the Board stand in the public square and offset perception issues. Board Member Fallin emphasized that any budget impact or resource issues should be detailed in the memorandum.

Board Member McClellan expressed her support for establishing a base salary and ways to adjust salaries accordingly. She stated that CAS experience needs to be taken into account for any adjustments because CASs that have been doing this work for years should not get paid the same as someone new. Board Member McClellan stated that she would entertain a thought to raise base salary to $170,00 or $175,000. She stated that there is a gap nationally and gap when looking at what a principal of one school is paid. Board Member McClellan reemphasized her concerned about interim CASs and CASs leaving. She stated that she and Board Chairperson Voss have different optics concerns and that she sees CASs as being akin to teachers and that the Board did not have any concerns with teacher compression increases. Board Member McClellan stated that she wants the Department to develop a system that is accountable, but also recognizes the functional reality of the position of CAS and that $165,000 as a base salary for this position is not enough.

Board Chairperson Voss clarified that Board Member McClellan agrees with the concept in Board Vice Chairperson Barcarse’s motion, but that she is considering whether to make a motion to increase the base to $170,000 or $175,00. Board Member McClellan confirmed that this was accurate.

Board Member Moriarty stated that it is important to look at pay of educational assistants (“EA”) and other support staff. She stated that she has a vision that educators and everyone that provides direct support to students would be viewed the same as other professionals. Board Member Moriarty stated that she struggled with Hayashi’s recommendation and expressed her appreciation for Board Vice Chairperson Barcarse’s motion because it asks for a system that should incentivize appropriately and shows how the pieces fit together. She asked for further clarification on the question that Board Member Fallin asked regarding financial impact because Hayashi’s memorandum stated that there was general fund money available, but she wants to know specifically where the money is coming from. Board Member Moriarty stated that she wants to have a better picture of the entire system going forward and then understand the full cost of this system.

Board Member Moriarty referenced the portion of the memorandum that was withdrawn regarding the AS and asked that if Hayashi makes a recommendation regarding ASs, that he present it with the necessary context, looking at the entire system, and explaining whether these changes require system adjustments because they affect other personnel.

Hayashi asked Brian Hallett, Assistant Superintendent, Office of Fiscal Services, Department of Education, to answer Board Member Moriarty’s question about the source of the funds to pay for CAS salary increases. Hallett stated that there is enough money in the Department’s base budget this year and the biennium budget to accommodate the CAS salary increase. He stated that much of the base budget is allocated to salaries.

Board Member Moriarty asked why this is the best use of these funds to support students at this time. Hayashi stated that the urgency is that there is a discrepancy between principal and CAS pay and that there are CAS positions filled on an interim basis and he wants to retain them. Board Member Moriarty stated that Hayashi’s leadership must be strong so they can ensure the level below them is strong and that CASs are at a critical level.

Board Vice Chairperson Barcarse stated that Hayashi’s memorandum, page 9, includes current salary ranges and that if $165,000 is the new salary floor for CASs, it is just a couple thousands of dollars shy of the current median. He stated that the new deputy superintendents have salaries of $190,000. Board Vice Chairperson Barcarse stated that if CAS salaries start at $175,000 and then make adjustments upwards, that will start impacting deputy superintendent salary ranges. He stated that $165,000 is more than any current CAS salaries. Board Vice Chairperson Barcarse stated that he wanted to take a step back and look at the big picture to see how these increases would impact adjacent salaries ranges.

Board Member Arakaki stated it is important that CAS salary increases not take money away from other important considerations, like health and safety. He questioned the value of using criteria like performance and responsibility because CASs all have the same responsibilities but oversee different complex areas. He noted that principal positions in elementary schools are different from principal positions in secondary schools and that the size of a school’s enrollment determines principal salary ranges.

Voss asked whether any Board members wanted to amend the motion on the floor to increase the CAS salary floor.

Board Member Fallin stated that she is fine with the $165,000 floor because after the Department presents a comprehensive system, there will be flexibility to provide increases based on criteria, which would be retroactive. She stated that setting a $165,000 floor is just a way to start developing a comprehensive system and that this approach offers a lot of opportunity and has a lot of potential.

Board Member Namauʻu stated that would like to leave the CAS starting salary at $165,000 to start the conversation about how to address issues with the compensation structure. She also stated that she is in support of taking this approach because increases will be provided retroactively. Board Member Namauʻu stated that the Board is taking a systems approach to things, like the superintendent search and strategic plan, and that when it makes major decisions on salaries, it wants to see a system. She stated that the Board has to be accountable for these decisions and encouraged the Department to come back with a thoughtful recommendation that incorporates the concepts and elements discussed today and avoids just throwing out a number and making everyone the same salary. Board Member Namauʻu stated that she does not want anyone to be discouraged by the discussion. She asked whether principals are the only ones that move into these CAS positions. Hayashi answered that the Department primarily hires from the principal pool for these CAS positions. He stated that CASs are instructional and systems leaders that deal with personnel and budgets and that need to know what a principal goes on a day-to-day basis.

Board Member Moriarty stated that she strongly supported Board Member Namauʻu’s request that the Department create a system and do this in a thoughtful way. She stated that she is comfortable with the $165,000 starting salary and that the Board would have the strategic plan in place by the time the Department comes back with a recommendation. Board Member Moriarty stated that at that time, she wants to come back and look at alignment and putting systems in place to align every action with the goals of the strategic plan.

Board Member McClellan stated that she will not make a motion to change the starting salary because salary increases would be retroactive. She stated that the Department needs to provide adequate data when it comes back with a recommendation, including comparative salary data.

Board Chairperson Voss called for a roll call vote on the motion. The motion carried with Board Vice Chairperson Barcarse and Board Members Fallin, McClellan, Moriarty, and Namauʻu voting aye and Board Members Arakaki and Asher voting nay.

ACTION: Motion to (1) approve a one-time salary adjustment of the salaries for Aiea-Moanalua-Radford Complex Area Superintendent John Erickson, Campbell-Kapolei Complex Area Superintendent Sean Tajima, Farrington-Kalani-Kaiser Complex Area Superintendent Rochelle Mahoe, Hana-Lahaina-Lanai-Molokai Complex Area Superintendent Rebecca Winkie, Hilo-Waiakea Complex Area Superintendent Esther Kanehailua, Honokaa-Kealakehe-Kohala-Konawaena Complex Area Superintendent Janette Snelling, Kailua-Kalaheo Complex Area Superintendent Lanelle Hibbs, Kaimuki-McKinley-Roosevelt Complex Area Superintendent Linell Dilwith, and Leilehua-Mililani-Waialua Complex Area Superintendent Robert Davis to $165,000, effective retroactively as of July 1, 2022, and (2) direct the Department to develop and present to the Board a comprehensive system for determining complex area superintendent salaries based on experience, performance, and levels of responsibility and propose an amendment to the Board's leadership salary structure recommending a new salary range for complex area superintendents no later than June 30, 2023 (Barcarse/Fallin). The motion carried with five members voting aye and two voting nay.


Hayashi asked that the Board take up this item at another time. The Board skipped this item.


Hayashi asked that the Board take up this item at another time. The Board skipped this item.


Hayashi asked that the Board take up this item at another time. The Board skipped this item.


Hayashi asked that the Board take up this item at another time. The Board skipped this item.


VI. Public Testimony on Board Agenda Items

Board Chairperson Voss called for public testimony. No one testified at this time.


VII. Discussion Items

Board Chairperson Voss called on Yvonne Lau, Interim Executive Director, State Public Charter School Commission (“Commission”), and PJ Foehr, Interim Deputy Director, Commission, to present the Commission’s annual report.

Lau stated that the annual report reflects the activities of the Commission and charter schools during the 2021-2022 school year. She stated that, overall, 22% of charter schools met or exceeded proficiency averages in all three tested areas (English Language Arts (“ELA”), math, and science). Lau stated that 24% of charter schools met or exceeded state and charter school averages for math, 35% met or exceeded state and charter school averages for ELA, and 38% met or exceeded state and charter school averages for science. She stated that based on Strive HI Performance System data, a majority of charter schools kept their students engaged. Lau stated that all charter schools met the requirements of the Commission’s financial performance system and were assessed to have low or moderate risk. She stated that all charter schools are monitored for compliance and subject to desk reviews. Lau stated that the Commission’s annual report includes the overall performance of all charter schools. She stated that charter schools are gradually moving from the current version of the charter contract (contract 3.0) to the next version (contract 4.0.).

Board Member Fallin acknowledged the work the Commission, Commission staff, and charter schools to be innovative and look at different ways to deliver direct services to schools and look at administrative frameworks. She stated that contracting with schools and finding ways to determine academic success by looking at things beyond test scores is wonderful. Board Member Fallin expressed her hope that there are future opportunities to share lessons learned and work with the Commission. She encouraged Lau to think about ways to do this and to let her know. Board Member Fallin stated that the Board completed its evaluation of the Commission and convened its Commission Outcomes Committee to track the Commission’s progress on the development of its continuous improvement plans. She stated that the Board asked the Commission to include a description of this progress in its annual report and requested that when the Commission does so, that it specifically describe the actions the Commission took.

Board Member Moriarty stated that she wanted to see more nationally comparative data. She stated that the proficiency rates are lower than she hoped, but that she thinks that they are not too different from national averages. Board Member Moriarty stated that it would also be interesting to get a better understanding of all the things charter schools are doing and whether there is a system that allows charter schools to learn from each other. She asked about the distribution of federal funds and whether anyone tracks whether all of the funds are spent, the programs and types of programs, and the outcomes achieved. Lau stated that the Commission’s revised strategic plan focuses on sharing more about charter school work.

Board Chairperson Voss asked Lau what the single biggest challenge is for charter schools going forward. Lau stated that the charter schools and the commission do not have offices like the Department’s Office of Talent Management or Office of Facilities and Operations, and charter schools do it all with the resources they are provided with. She stated that although charter schools are independently operated by governing boards, they need support in these areas. Lau stated that she would like to advocate for a system to get those supports in place and that she is working with the Department of Health to get the Keiki Nurse program for charter schools, like what the Department has. She stated that health and safety is essential and thanked the Department for inviting charter schools to its safety conference. Lau stated that charter schools do not have these kinds of foundational supports and that they need these kinds of systems so they can focus on being innovative. She stated that the Commission has not been able to share out a lot of what charter schools have been doing and that they have been doing amazing things and engaging the families and communities. Foehr added that being innovative includes assessing students in different ways and that charter schools can be at the forefront of innovative assessments.

Board Chairperson Voss stated that standardized test numbers are not everything, but taking the proficiency numbers for what they are, the results at some charter schools are disappointing. He stated that it is hard for charter schools to share resources because of their unique and independent status and asked whether there was some way to do this. Foehr stated that there is no systemic way because each charter school is an independent state agency, but that charter schools try to work with each other. He stated that the Commission’s federal programs team explored whether charter schools wanted to pool federal funding and stated that the Commission tries to help charter schools find their way to each other and then step back.


Board Chairperson Voss called on Randall Tanaka, Assistant Superintendent, Office of Facilities and Operations, to present the Department’s R&M and capital improvement programs quarterly report.

Tanaka stated that there is a distinction between the usual funding and the Maintenance of Effort (“MOE”) funds because the Department must spend MOE funds by June 2023. He stated that this is difficult because the Department already has other projects in place. Tanaka stated that he is working with CASs to get onto school campuses, but that he does not want schools to be construction zones and interfere with school operations. He stated that $125 million in MOE funds were provided to the Department in a lump sum (so the Department can decide how to spend the money) and $135 million are line items (so the funds are dedicated to specific projects). Tanaka stated that line item funds are more problematic because the Department cannot complete construction in a short timeframe, so it is looking at using these funds to complete design, do pre-work and purchase material. He stated that in remote communities, the Department needs to have assets in place on island.

Board Member Fallin stated that going forward Tanaka would provide a regular report on R&M and capital improvement programs and that she had scheduled this for FIC to look at this in January. She stated that the challenge for this year is expending the funds appropriated. Board Member Fallin stated that in order to avoid lapsing MOE funds, the Department would have to shift priorities and asked what the Department has to shift.

Tanaka responded that he has had to restack priorities established last year. He clarified that the Department has three years to spend non-MOE funds and that if the Department encumbers the non-MOE funds with a purchase order, the money is relatively safe. Tanaka clarified that there is a difference with MOE funds because MOE funds need to be spent, not just encumbered. He stated that the Department is using its job order contracting (“JOC”) program because it simplifies the procurement process. Tanaka stated that the Department is also using smaller contractors because they have more flexibility than larger ones and can start work quicker. He stated that the Department will use JOC and smaller contractors to quickly expend MOE funds. Tanaka clarified that the failure to timely expend MOE funds means that the rest of the state cannot spend its ESSER funds, so other agencies would be put in a bad position if the Department does not expend these funds.

Board Member Fallin asked if the $125 million in MOE funds are being used for school priorities. Tanaka stated that they were, but not a lot because there is an issue with contractor capacity to get in there and to do the work. He stated that when he first started, JOC was dedicated to roofing, but that they have since expanded the program to other areas. Tanaka stated that pre-qualified small contractors will not take a $2 million job. He stated that there are not as many small contractors or JOC contractors on the neighbor islands, but neighbor island schools have a lot of projects. Board Member Fallin stated that it was important to see impact of funding in schools.

Board Member Fallin asked where the budget proposals originated and how the proposals affect overall workflow. Tanaka stated that there is funding for the central kitchen, which is a critical part of increasing efficiency and fulfilling the legislative mandate to use more local produce. He stated that he visited five central kitchens and that centralization creates greater efficiency and avoids the expense of having to upgrade multiple smaller school kitchens. Tanaka stated that a central kitchen can cook and chill the food and send it out to schools. He stated that the Department needs to upgrade its refrigeration systems to do this. Tanaka discussed possible effects on the cafeteria workforce, how meals could be mass produced for multiple schools, and using produce from the geographical area where the central kitchen is located. He stated that the Department conducted three community outreach programs. Tanaka stated that last week it was in Wahiawa and it went well, but the community has some concerns.

Tanaka explained that the funds to purchase the former St. Francis school campus is an appropriation from the legislature and does not use federal funds. He stated that purchasing this property would allow the Department to consolidate operations, which creates efficiencies. Tanaka explained that there are covenants that run with the land, which require that the land be used for an educational purpose. He explained that having an educational purpose does not necessarily mean teaching and that Department offices would fulfill the broad requirement of an educational purpose.

Board Member Fallin asked how the purchase of the former St. Francis school campus became a priority versus others, since this is a new appropriation request. Tanaka stated that he needs to wait to see if the legislature will appropriate funds for this. He stated that this is an opportunity to be more efficient by moving Department offices to this site and instead of paying $1 million in rent annually at Dole Cannery.

Curt Otaguro, Deputy Superintendent of Operations, Department of Education,
added that the former St. Francis school campus is 11.12 acres, which the Department can purchase and then develop over time and may be able to accommodate multiple uses, like teacher housing, a preschool, or a central kitchen.

Board Chairperson Voss stated that he wants to be clear on the amount of MOE funds that are potentially at risk. He stated that regarding MOE funds, $125 million is lump sum R&M and Tanaka is confident that he can spend $80 million of that, so there is $45 million of MOE R&M funds at risk. Board Chairperson Voss stated that the line item category has $131 million and asked how much is at risk in that category. Tanaka stated that the line item category is harder because he is trying to get contractors on the project to purchase material once awarded the project. He stated that it is unknown when the contract would be awarded. Tanaka stated that he would be surprised if the Department could spend $30 million of the MOE line item funds. Board Chairperson Voss stated that there would then be around $100 million in line item MOE at risk of lapsing and a total of $145 million in MOE funds that are at risk, which is just too much. He asked what else can be done to prevent this loss. Tanaka stated that his team is more conservative when forecasting. He stated that the problem is the line items because they are specific projects and if he could move those funds to lump sum or get an extension, then he might be able to use the funds for these projects. Tanaka said that the Department is using a lot of consultants on this because it does not have the capacity to do this with the current personnel. He stated that the deadline is the problem and that he needs to have a more intensive conversation with the consultants to see what they can complete.

Board Chairperson Voss asked whether the legislature can grant an extension to give the Department more time to expend these funds wisely. Tanaka stated that the Department cannot waste this money and that this year, the Department went back for a re-appropriation, so it has already started that discussion. He stated that a new Department of Budget and Finance team would come in with the new administration and that the Department would need to restart this discussion with the new administration. Tanaka said that if Board Chairperson Voss tells him that he needs to have a plan to expend $100 million and a plan for the next 30 days, then he would work hard to do that. He said that there is talk of the possibility of extending the deadline to expend funds to December 2023, but that is not guaranteed.

Board Member Moriarty stated that she is the Hawaii representative on NASBE’s Government Affairs Committee and that the committee looked at possible education policy changes. She stated that the strong, considered opinion of the NASBE team that follows federal legislation is that it is highly unlikely that there will be an extension. Board Member Moriarty stated that she would like to have a more granular understanding of the impediments to expending this money, the difficulty of coordinating with CASs to get contractors on to the campuses, and a more granular understanding of what parts of the big numbers are related to the impediments and the course of action to remove those impediments. She stated that there is a lot of need out there and if the Department tells people that it could not use the money, then that does not bode well for future funding.

Tanaka stated that the CASs are not an impediment and are enthusiastic because they know that this might be a once in a lifetime opportunity. He stated that one impediment is permits with the counties and how long it takes to get them. Tanaka stated that he has had discussions with various counties and that there is a possibility of bypassing the permitting process, but that will hold up the issuance of a certificate of occupancy. He stated that he is less flexible if the project is safety-related. Tanaka stated that another impediment is that contractors already have a lot of projects.

Board Member Moriarty stated that at the Board’s strategic plan community meetings, many attendees told her that they would be willing to pitch in with things like painting and asked whether it would be faster to get someone certified than to hire a contractor. She encouraged Tanaka to think creatively as much as possible. Tanaka stated that he does not have any painters in the facility maintenance crew, so he is looking at job descriptions for painters and that he is working with students in alternative learning programs to get them job experience.

Board Member Fallin asked Tanaka to explain the effect of failing to expend MOE funds by the deadline. Tanaka stated that the Department would not complete the list of projects. Board Member Fallin asked Tanaka to explain the general effect on the state. Tanaka stated that he would need to have that discussion with the Department of Budget and Finance, but it thought that the Department could only spend $40 million and so that is how it advised other state agencies, but that the Department has already expended more than that.

Board Member Fallin stated that the Department needs to have a plan to spend those MOE funds and a plan if it does not expend the funds. Tanaka stated that he looked at getting inmates from public safety to work on projects, but they cannot go on school campuses.

Board Member Fallin asked when Tanaka will consider it an emergency if the MOE funds are not expended in some way. Tanaka stated that the Department needs to get things done in the second and third quarters because it is too late to expend funds in the fourth quarter. Board Member Fallin confirmed that Tanaka will know around March or April, which Tanaka confirmed.

Board Member Fallin asked about the central kitchen project. Tanaka clarified that the central kitchen is a general fund line item and is not using MOE or ESSER funds. He stated that the central kitchen will serve a specific complex area.

Board Member Fallin asked Tanaka to work closely with the Manoa community on the former St. Francis school campus acquisition. She noted that when the University of Hawaii was working on a stadium, there was an uproar in the community about traffic. She stated that the Department needs to talk to the community about impact and educational value.

Board Chairperson Voss emphasized that the potential lapse of MOE funds is important to the Board and that if there are significant developments, the Department must notify the Board.


VIII. Adjournment

Board Chairperson Voss adjourned the meeting at 4:53 p.m.


List of the people who submitted written testimony before the meeting

NAME
Organization
Agenda Item
Sarah Hofstadter
Hale Hawaii
VIII. B. Update on Department of Education’s repair and maintenance (R&M) and capital improvement programs: quarterly report
Susan Pcola-DavisIII. A. Investigative committee (a permitted interaction group pursuant to Hawaii Revised Statutes Section 92-2.5(b)(1)) concerning Board policy positions, legislative proposals, and legislative reports for 2023 Legislative Session: findings and recommendation on Board legislative reports for the 2023 Legislative Session (annual charter school report)
Susan Pcola-DavisV. A. Board Action on findings and recommendations of Investigative Committee (a permitted interaction group pursuant to Hawaii Revised Statutes, Section 92-2.5(b)(1)) investigating issues concerning Board policy positions, legislative proposals, and legislative reports for 2023 Legislative Session: board policy position and legislative proposals for the 2023 Legislative Session
Susan Pcola-DavisVII. B. Update on Department of Education's repair and maintenance (“R&M) and capital improvement programs: quarterly report
Cheri Nakamura
HE‘E Coalition
V. A. Board Action on findings and recommendations of Investigative Committee (a permitted interaction group pursuant to Hawaii Revised Statutes, Section 92-2.5(b)(1)) investigating issues concerning Board policy positions, legislative proposals, and legislative reports for 2023 Legislative Session: board policy position and legislative proposals for the 2023 Legislative Session
Cheri Nakamura
HE‘E Coalition
V. B. Board Action on compensation adjustments for Assistant Superintendent of the Office of Fiscal Services and Complex Area Superintendents of Aiea-Moanalua-Radford, Campbell-Kapolei, Farrington-Kalani-Kaiser, Hana-Lahaina-Lanai-Molokai, Hilo-Waiakea, Honokaa-Kealakehe-Kohala-Konawaena, Kailua-Kalaheo, Kaimuki-McKinley-Roosevelt, Leilehua-Mililani-Waialua Complex Areas
Cheri Nakamura
HE‘E Coalition
V.C. Board Action on compensation adjustment for Department of Education employee excluded from Bargaining Unit 6: Administrative Assistant to the Superintendent (Chief of Staff)
03_schisms.woofer@icloud.comV. B. Board Action on compensation adjustments for Assistant Superintendent of the Office of Fiscal Services and Complex Area Superintendents of Aiea-Moanalua-Radford, Campbell-Kapolei, Farrington-Kalani-Kaiser, Hana-Lahaina-Lanai-Molokai, Hilo-Waiakea, Honokaa-Kealakehe-Kohala-Konawaena, Kailua-Kalaheo, Kaimuki-McKinley-Roosevelt, Leilehua-Mililani-Waialua Complex Areas
Winston SakuraV. D. Board Action on appointment of Assistant Superintendent of the Office of Curriculum and Instructional Design
Carmielita MinamiV. D. Board Action on appointment of Assistant Superintendent of the Office of Curriculum and Instructional Design
Tracy MonroeV. D. Board Action on appointment of Assistant Superintendent of the Office of Curriculum and Instructional Design
Rosanna FukudaV. D. Board Action on appointment of Assistant Superintendent of the Office of Curriculum and Instructional Design
Alex HarrisV.C. Board Action on compensation adjustment for Department of Education employee excluded from Bargaining Unit 6: Administrative Assistant to the Superintendent (Chief of Staff)
Alex HarrisV. D. Board Action on appointment of Assistant Superintendent of the Office of Curriculum and Instructional Design
Alex HarrisV. F. Board Action on appointment of Assistant Superintendent of the Office of Talent Management
Jacie IgeV. F. Board Action on appointment of Assistant Superintendent of the Office of Talent Management
Scott FujiV. F. Board Action on appointment of Assistant Superintendent of the Office of Talent Management
Mara HansonVII. B. Update on Department of Education's repair and maintenance (“R&M) and capital improvement programs: quarterly report