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Speed up approval
of school funding

THE ISSUE The Board of Education has yet to approve a new way to fund public schools.

FRICTION and fears among members of the state Board of Education about a new funding formula for public schools has put a squeeze on administrators who must put together academic and budget plans by year's end.

Further delay will likely hamper schools from making best use of their money. The board should swallow hard and accept that the change in the way schools receive allocations will never completely satisfy one and all, approve the funding package and closely monitor results.

The formula, part of a 2004 public education reform act, portions out money to schools based on student needs. It sets "weights" for students whose education costs more, such as those who are poor, disabled and don't speak English well. As a result, some schools will get less money than in previous years; others will gain.

The board has supported the new funding method, but it appears some members got cold feet when it became clear that the shift would mean fewer dollars for schools in their districts. That's understandable; few elected officials can stomach funding cuts for their constituents. Others contend the Department of Education has not adequately spelled out the effects fewer dollars may have on personnel and programs.

While the department should do its best to anticipate issues, there's no way to predict outcomes squarely. The method is new for Hawaii and though other school systems have used it, there will be differences. In addition, how schools spend will depend on principals and the desires of community councils.

The formula is not set in stone. Adjustments can and likely will be made as need be.

One concern is that smaller schools in rural districts are taking bigger hits, a consequence of having fewer students, while their costs may run higher because of location. If this proves onerous, the formula should be altered. Another consideration would be to allocate more money to schools struggling to comply with the federal No Child Left Behind law.

The new formula is a big change for Hawaii's schools and adapting will take time. However, the board cannot delay action much longer. Doing nothing is not an option.

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Fed price gouging probe
may be fruitless effort

THE ISSUE The Federal Trade Commission is investigating gasoline price increases.

LIKE many consumers, Hawaii Sen. Daniel Inouye suspects that the oil industry artificially pumped up gasoline prices in the wake of Hurricane Katrina. It may be true, however, it is doubtful that investigations by the Federal Trade Commission or Congress will turn up substantial evidence of such activities. Obscured by the clouds of Katrina and successor Hurricane Rita in a region that produces 35 percent of the nation's gasoline, plus the volatility of the global petroleum market, proof of profiteering won't be easy to pin down.

Consumers would be mollified by confirmation of price gouging -- suggested by gasoline prices rising faster and steadier than the price of crude oil -- but that would be a small consolation since the cost of fuel for transportation and power generation will continue to climb.

An FTC official told the Senate Commerce Committee this week that the agency is looking into whether the industry engaged in chicanery to elevate prices. Inouye, the committee's ranking Democrat, maintains some companies and service stations did, telling Reuters news agency he believes they "have taken advantage of a national tragedy to line their pockets."

A Government Accountability Office official also has the same impression, noting that the ups and downs of crude prices generally see similar fluctuations in gas prices, which has not happened. It is a situation pre-gas cap Hawaii had been long familiar with as gasoline prices seldom mirrored drops in crude prices. Now that mainland drivers are encountering the same, governors of eight states and others are calling for investigations.

But high prices will remain as long as demand increases, world supplies diminish and extraction and production become more expensive. What is needed is an earnest shift in energy policies that thus far this nation's leaders have not delivered.

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