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The Honolulu Advertiser
Posted on: Monday, January 1, 2007

DOE, governor clash over education budget

By Beverly Creamer
Advertiser Education Writer

BUDGET AT A GLANCE

Here are highlights of Gov. Linda Lingle's proposed education funding in her latest two-year budget.

$2.313 billion in the first year and $2.344 billion in the second year, including general, federal and special funds, for the Department of Education's operating budget.

$142 million in new funding for food services, student transportation, special-education teachers and assistants, substitute teachers, and purchases of classroom furniture and equipment for new schools and facilities.

$51.6 million each year for charter schools.

$35.2 million each year to operate the public libraries, including additional funds to buy more books and library materials.

$300 million in general obligation bonds for new schools.

Source: Governor's office

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The first salvoes of the 2007-09 Department of Education budget season have been fired.

Gov. Linda Lingle said her proposed budget shows strong support for public education, while the DOE says her budget is generous in some areas but far below what's needed in others.

There are indications the Legislature might step in again this year and boost funding to what the department says it needs, particularly in basic areas such as electrical costs, transportation and technology infrastructure.

DOE spokesman Greg Knudsen said the governor's proposed funding levels "ignore" certain needs, including money to comply with federal requirements such as the Americans with Disabilities Act. "One of the biggest differences is the $21 million each year for the weighted student formula we felt should have been a continuing part of the budget, so we think $42 million (for two years) should be added for that," said Knudsen.

But Lingle's budget director, Georgina Kawamura, said the budget offers the schools great support. There should be enough money already in the pipeline to cover compliance issues through July 2008, and funds could always be added a year from now if there's a shortfall, she said.

"There is no department that got everything they requested, because it would be impossible for the state to afford that," said Kawamura. "Therefore, when we make recommendations we have to scrutinize all of the requests."

The total DOE budget request by the governor totals $2.313 billion for the 2007-08 fiscal year, with $2.344 billion for the next year, but most of that money goes directly to salaries.

What's basically at stake is how much of an increase in operating and capital improvement money the department will be able to win over the previous biennium. During those two years Lingle also trimmed the requests, only to see the Legislature step in and give the department much of the money it asked for. That included a $160 million boost to finish renovating the remaining 100 oldest schools.

DOE REQUESTS TRIMMED

On the operating side, the Board of Education asked the governor for an increase of $278.8 million for the coming 2007-09 biennium, but Lingle trimmed that request by nearly half, to $141.9 million for the two years.

For capital improvements, the BOE is asking for $798.5 million to build new schools and continue repair and maintenance projects. But the governor has proposed that the capital-improvements budget be capped at $300 million in general obligation bonds, which would essentially finance four new schools.

The Department of Budget and Finance has already made some alterations at the DOE's request.

After Superintendent Patricia Hamamoto protested cuts of $40 million for classroom equipment, $42 million for weighted student formula costs and $9 million to hire regular education teachers, the governor added back $40 million for classrooms.

But she specified it had to be channeled to schools directly to meet the needs of students and teachers.

"This is slightly better," said Knudsen in response, "but there are still some major differences."

At the same time, the administration altered its first proposals for school electrical costs, offering $1.1 million for the next biennium compared with the board's request of $4.9 million.

TAKUMI TO 'TAKE CARE'

For Rep. Roy Takumi, who heads the House Education Committee, taking care of basics has to come first.

"I know the governor cut the DOE budget to less than half, but I don't know why you don't fund basics. Unless she's cut some deal with the electric company, they'll have to come up with an emergency appropriation or just turn off the lights ... So we're going to take care of that."

Other priorities for Takumi are making sure compliance issues and basic needs are met, early childhood education, charter school funding, and expanding technology within the DOE, including providing funding for a new financial management system to increase DOE transparency as well as for expanding e-schooling.

James Brese, the new DOE chief financial officer, said without money to continue improving technology in the department, there won't be the transparency everyone desires.

"It's certainly going to hinder us becoming more transparent," said Brese.

When it comes to continuing school renovations, Takumi said he'll want to know during a Jan. 5 budget briefing just how far the department has gone with the $160 million in funding for school renovations the Legislature approved last year.

"If they can assure us they can handle an additional $150 million we'll certainly put that on the priority list."

At this point the funding has not been included in the governor's budget.

BUILDING NEW SCHOOLS

The governor supports building four new schools needed in growth areas of the state — 'Ewa Makai Middle, Kapolei II Elementary, Lahaina III Elementary and Wailuku II Elementary.

She also supports replacing buildings damaged by fire in two other schools, Kalaheo Elementary and Pa'ia Elementary on the Neighbor Islands. However, she didn't include money to start construction immediately on Wailuku II, though planning is complete.

DOE officials say holding off for another year on the Wailuku II school would mean serious crowding for those students.

"There's no reason to delay it," said Knudsen. "Everything is there. It's ready to go."

Of additional concern to the DOE is a two-year request for $150 million for school building improvements, which is not in the governor's budget. The board maintains that at this level the backlog of repairs and maintenance won't continue growing. But if this funding doesn't come through, say DOE officials, the result will be an increase in deferred maintenance as in the past.

While the vision of the two sides differs in what schools need, the governor said in a statement that funding for schools "reaffirms" her administration's commitment to public education. The statement said the governor was allotting the additional $142 million to schools for food services, student transportation, special-education teachers and assistants, substitute teachers and classroom furniture and equipment for new schools.

"These amounts include an additional 161 temporary full-time special education teaching positions," said the statement.

In her budget the governor expressed strong support for the charter schools — $51.6 million each year — to ensure they receive the same level of support as traditional public schools.

As well, the administration budget is proposing $35.2 million each year for the public libraries.

Reach Beverly Creamer at bcreamer@honoluluadvertiser.com.

Correction: In an previous version of this story about education budget proposals for the next biennium, Rep. Roy Takumi commented on the governor’s proposal to cut the Department of Education’s proposed electricity budget. The story incorrectly suggested Takumi was referring to the entire proposed DOE budget.