Felix dollars
not enough

The schools and state Health
Department say special ed
needs another $30 million

By B.J. Reyes and Richard Borreca
Star-Bulletin

Despite a $43 million boost in funding for special-education programs in the state budget, the departments of Health and Education say they are still about $30 million short of the funds needed to be in compliance with the Felix consent decree by the end of next month.

The Education Department is about $20 million short, agency spokesman Greg Knudsen said last night. State Health Director Bruce Anderson said his agency still needs about $10 million.

"We've all worked very hard to get to where we are now," Anderson said. "As we can see the light at the end of the tunnel, I would hate to see this funding issue get in the way of the progress that we've made in meeting the obligations of the consent decree."

The decree was the result of a 1993 federal lawsuit, filed on behalf of student Jennifer Felix, that claimed the state violated federal law by failing to provide adequate services to special-needs students.

U.S. District Judge David Ezra said last week that if the money to be in compliance is not in place by June 30, he would have no choice but to issues sanctions including a fine of up to $200,000 a day and have a federal receiver take over the state's special-education system. The state has until the end of the year to be in compliance.

The Legislature, in response to Ezra's admonitions, on Wednesday night approved a budget that boosts special-education spending by $43 million.

Despite analyzing their needs and paring their requests, the agencies still are short, Anderson and Knudsen said.

"Not having sufficient funds, I think, sends a very poor message to the court as to our ability to sustain those programs," Anderson said. "I suspect he'll (Ezra) have very little tolerance for shortfalls that might be in either department's budget."

Gov. Ben Cayetano and Senate President Robert Bunda said last week that if the $43 million was not enough, the Legislature would have to return for a special session. Cayetano spokes-woman Kim Murakawa declined further comment last night.

Knudsen said a special session would give the Felix compliance issue the attention that it deserves.

"It is not just a Department of Education need or a Department of Health need, but the responsibility of the entire state," Knudsen said.

Senate Ways and Means Chairman Brian Taniguchi (D, Manoa-Moiliili-McCully-Pawaa) and House Finance Chairman Dwight Takamine (D, North Hilo-Hamakua) did not return telephone messages last night.

The Legislature, particularly the Senate, has repeatedly criticized the Health Department's handling of the Felix consent decree and the agency's own budgeting process.

In the committee report attached to the state budget, legislators said that while the departments of Education and Health combined spent $1.5 billion since 1995 to achieve compliance with the Felix decree, "neither department has been able to manage the cost of compliance, as evidenced by the habitual annual requests for emergency funding."

Legislators also complained that the Health Department is plagued by a poor accounting system, according to the report. Anderson noted that of the $10 million his agency is short, $1 million is earmarked for the department's information management system and administrative support.

The report also said the Education Department's budget was being raised in an attempt to comply with the Felix order and included an extra $85.7 million over the two-year budget to address Felix costs.

However, the report noted, "Although the responsibility, workload and number of clients served in the Felix class has decreased for this division, their total budget appropriation has been increased."

Knudsen said there are about a dozen different programs, including services for autistic children and teacher recruitment programs, that would remain unfunded or underfunded with the current budget. Anderson said the bulk of the $10 million his agency needs is for direct services for special-needs children.

Anderson said he also would welcome a special session to explain in detail the needs of his department.

"I can't imagine that at this late, with us so close to coming into compliance, that we would have to throw in the towel," Anderson said.