Posted on: Monday, February 10, 2003

Public schools could lose $4 million in federal money

Associated Press

Hawai'i's financially strapped public school system could be facing more bad economic news.

A Bush administration proposal would cut 10 percent of about $40 million the system receives in supplemental annual federal money.

The proposal calls for cutting federal payments to school districts serving children of military personnel who don't live on base.

It would also cut payments for children of civilians working on government property and children living in federally owned low-income housing projects.

Department of Education budget director Edwin Koyama said if the administration is successful, assessments would have to be made to find out where the federal money is being used to determine which services or items can't be continued.

The DOE has used the federal impact aid to pay for special education programs, teachers' salaries and equipment.

Gov. Linda Lingle's administration already has slashed $8 million from the 2003-2005 operating budget for education prepared by former Gov. Ben Cayetano. The Board of Education recently was told to shave an additional $3 million.