Posted on: Thursday, May 30, 2002

ISLAND VOICES
DOE to provide full financing

By Patricia Hamamoto
State superintendent of schools

An Advertiser news story on May 21 and editorial on May 22 incorrectly stated that the Department of Education was planning to "cut" or "trim" financing for the state's public charter schools by $4 million. That is not so.

The DOE is providing the full amount that the charter schools are entitled to by law, as determined by the Legislative Auditor's Office.

To the Advertiser's credit, when presented with the facts, you ran a correction and offered this additional space for a more detailed response.

The reporting confused "budget cuts" with "budget shortfalls." The budget request approved by the Board of Education sought legislative financing for costs that come out of the DOE budget for charter schools. Up until now, no additional financing was provided to the DOE, and the costs of our charter schools had to come out of "existing funds."

In other words, the financing to support the creation and operation of our 22 charter schools had to be siphoned off from funds intended for the regular public schools and public school system.

This year, the Legislature provided $6 million in financing for the charter schools, which was close to the BOE request. However, based on the legislative auditor's financing formula for the charter schools, we later determined that $10 million was needed. Hence the $4 million shortfall.

The partial financing doesn't mean that the charter schools are going to be shortchanged. It means that the DOE must continue to reallocate the additional $4 million from among other appropriated funds, which we will do.

The Advertiser editorial of May 22 didn't simply repeat the inaccuracy, but used it to make another false assumption. The editorial stated, "The $4 million trim now earmarked for the charter schools reinforces the notion, which is gaining currency, that the department and board aren't committed to them."

Since the foundation for the first statement is false — there is no "$4 million trim now earmarked for the charter schools" — then the conclusion that the DOE and BOE are not committed to the charter schools is also false. In fact, providing the $4 million from existing funds demonstrates a real commitment to the charter schools.

The BOE and DOE have always supported the charter schools. We just don't believe that their financing should be at the expense of the regular public schools. The board is also demonstrating its commitment to the charters by exercising its responsibility to monitor the charter schools and demand that they are accountable in their use of public funds and in having their students achieve the Hawai'i Content and Performance Standards.

The editorial also urged the DOE to make budget adjustments "as far away from the classroom as possible," and then argued that we do whatever is necessary to maintain current financing for the A-Plus after-school program and for school bus service — both of which are heavily subsidized by the state, even for families with the ability to pay a greater share of the cost.

A-Plus is a valuable program, and we are committed to securing the funds needed for its full-year operation — but it is basically a childcare program and not instructional. Student transportation is part of the full cost of running a school system, but it, too, is not instructional.

Both of these programs are currently bleeding the DOE budget and having an adverse effect on instructional funds. By seeking a reasonable increase for A-Plus fees and bus fares, with continued consideration for low-income families, the DOE is protecting the classroom.

In the DOE budget, the charter schools are currently underfinanced by $4 million, student transportation by another $4 million and the A-Plus program by $3.5 million. This amounts to an $11.5 million shortfall that the DOE intends to cover. This is only part of the total shortfall that must be covered.

Other crucial budget items were either unfinanced or partially financed, and the DOE and board must determine a way to meet those expenses. While the actual plan is not yet proposed, it will most likely be necessary to impose substantial restrictions on allocated funds, both administrative and instructional, in order to cover the costs.