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The Honolulu Advertiser
Posted on: Sunday, June 28, 2009

Schools' hands tied over budget


By Loren Moreno
Advertiser Education Writer

BUDGET REDUCTION PLAN

For more than two weeks, the state Board of Education has deferred on Superintendent Patricia Hamamoto’s budget reduction proposal. Her plan covers a $226.8 million budget shortfall for the DOE for next year. The DOE is also anticipating about $241.7 million in cuts for the 2010-11 school year.

BOE members have delayed a decision over cuts, including:

$120 million: Labor cuts, including furloughs and reducing part-time workers

$16 million: Reduction of supplies and equipment

$53 million: Federal stimulus funds used to offset cuts

$40 million: Previously approved cuts that would affect 240 full-time positions and dozens of programs

$10 million: Federal Impact Aid to reimburse state for educating military-dependent students

Source: state Department of Education

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Uncertainty over the state public schools budget — and inaction by the state Board of Education on $226.8 million in cuts for the upcoming school year — has school principals saying they are unable to fully prepare for doors to open about four weeks from now.

Twice in as many weeks, board members have postponed any decision on where to cut their budget, opting instead to wait for more clarity from the governor and courts on what reductions will be required.

Meanwhile, the clock is ticking, with teachers and administrators scheduled to return to school on July 28 and students returning two days later.

The inaction on the part of the Board of Education has drawn criticism from lawmakers and educators.

Board members should make a decision with the information available to them so schools can prepare, said Rep. Roy Takumi, the chairman of the state House Education Committee.

"No other department is taking a wait-and-see attitude," Takumi said. "The perception is they (board members) are paralyzed and unable to make hard calls. I don't know how fair a shot that is, but that's the perception."

The effects of budget uncertainty is being felt on the school level.

Several principals said they are holding off on hiring dozens of part-time teaching assistants and other school workers, such as librarians or English Language Learner tutors. They're also being conservative — almost frugal — in the purchasing of teaching materials, textbooks and supplies, they say.

"The teachers are hired, but those part-time people are on hold," said Catherine Payne, principal of Farrington High School. "I don't know how we will manage without them, particularly in ELL."

Part-time workers are in a holding pattern right now, Payne said, until she has a better idea of how budget cuts will affect the school. These workers run after-school tutoring programs in math, work with students who are learning English as a second language and provide support to special education students, she said.

Meanwhile, Payne says, she hasn't prepared any of her purchasing for the upcoming year, which she usually does during the summer break. Rather, in anticipation that the state Board of Education will cut school budgets, she said she's put "several hundred thousand" dollars into a reserve.

"In case they cut, it'll just be unbudgeted. I was expecting, even when we started working on our budget, that there would be cuts. I don't know if I've put enough" into reserve, she said.

MEETING CANCELED

Board of Education members have cited a number of reasons for postponing a decision on the budget cuts, including the ongoing discussions with labor unions — and pending legal challenges — about Gov. Linda Lingle's plan to furlough state workers.

Last week, the board canceled a special meeting scheduled for Wednesday, putting off a decision on the public education budget until after a Thursday court hearing on union challenges to the furloughs.

"A lot of this depends on what the court decides," said Garrett Toguchi, chairman of the state Board of Eduction.

"If they say we have no authority (to do furloughs), that changes everything. If they say we do, then we can proceed on what (Superintendent Patricia Hamamoto) has been planning on," Toguchi said.

Two weeks ago, budget officials from the state Department of Education presented board members with a proposal to address $227 million in budget cuts through potential furloughs of teachers and staff, a 5 percent across-the-board cut to school-level programs and a reduction in part-time workers.

To prevent a complete state of paralysis in the public school system, board members voted June 12 to send school administrators half of the money they had been expecting for next year while they take more time to figure out where to cut the rest from the DOE's budget.

However, that just means the remainder of a school's budget will have to be adjusted once the board decides on cuts.

In the DOE's budget proposal is $120 million in labor savings, including cuts to part-time workers. And officials are also proposing some $16 million in cuts to classroom materials and supplies.

Schools are likely to receive at least $35 less per student next year under the budget reduction plan proposed to the board. That's because DOE budget officials are suggesting slicing the so-called Weighted Student Formula, the department's method of allocating money to schools, by some $8 million.

Donna Lum, the principal of Jarrett Middle School, said she's being "extremely conservative" in planning for the school year, knowing her budget will be restricted once board members make a decision.

"We know we have to be very frugal, thoughtful and wise in our purchases for next year," Lum said.

Lum said the school has already reduced its staffing by cutting one counselor and the school's librarian. She anticipates more reductions, likely in part-time teaching positions.

"This situation is so tenuous, and it does cause anxiety in terms of not knowing. If we had some kind of definite decision, or conclusion, as to exactly what it is that we're going to work with, we can make a little bit firmer of a decision," Lum said.

REASONS FOR DELAY

Board members have given a number of reasons for stalling their decision on school budget cuts. Last week, members said they were worried that the governor had not yet signed the state's budget. Members are also concerned about Lingle's plan to release money incrementally on a quarterly basis — rather than in an annual lump sum — because the state's financial situation is in a constant state of change.

However, their inaction also appears to be partly due to their hope that they can avoid the cuts. Last week, Toguchi said the board sent a letter to state Senate President Colleen Hanabusa and House Speaker Calvin Say urging them to convene a special session of the Legislature to consider use of the Hurricane Relief Fund or an increase in the general excise tax to plug the state budget deficit, subsequently sparing education from drastic cuts

Then, Janis Akuna, the chairwoman of the board's Budget and Fiscal Accountability Committee, sent letters to the editors of the state's newspapers, urging use of the estimated $180 million in the Hurricane Relief Fund.

"There are two sides to (the board's delay). Yes, it is a political statement. ... But most of it is that we don't know what the real budget is," said Akuna, the former chairwoman of the Hurricane Relief Fund from 1993 to 2001.

"Are we supposed to actually make a decision based on probability?" she asked.

URGED TO PROCEED

It's unclear whether lawmakers are willing to tap into the Hurricane Relief Fund, but Rep. Takumi said the board should not wait to see if state lawmakers come back for a special session.

"The board should proceed with the assumption that there will be no increase in the general excise tax or raiding of the Hurricane Relief Fund or the Rainy Day Fund," Takumi said.

Lingle ordered many state workers to take three unpaid furlough days per month for the next two years to help close the budget deficit. She can't directly order Department of Education employees to take furloughs because they are administered by the board, so she has told them to make budget cuts equal to what the furloughs would save. The plan goes into effect on Wednesday, but on Thursday state employee unions will be in court asking for an injunction against Lingle's furlough plan.

BOE chairman Toguchi says he's waiting to see what the court does. The board is likely to convene to make a budget decision following resolution on the legal front, he said. The next time the full board is scheduled to meet is July 16.

The Hawaii State Teachers Association and two other labor unions filed complaints against the Lingle plan in Circuit Court earlier this month. The union asked the court for an injunction stopping Lingle from imposing spending restrictions equivalent to furloughs at the state Department of Education, or roughly $127 million a year for the next two years.

If the entire $127 million restriction were taken in furloughs, that would mean 12-month employees would need to be cut by 36 days and 10-month employees would need to be furloughed for 30 days.

Roger Takabayashi, president of the HSTA, said the questions of furloughs has tied the board's hands.

"We're waiting on a court to decide the legality (of furloughs) and that will determine what the DOE does," he said.