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Election 2002



DOE chief backs use of
state bonds by private schools

Hamamoto says she now is convinced that
such a policy would be good for the state


By Pat Omandam
pomandam@starbulletin.com

State Schools Superintendent Pat Hamamoto says people should vote "yes" on a ballot question that allows private schools to use state bonds to help finance construction and renovation projects.

The Hawaii State Teachers Association had urged voters last week to vote "no" on that question, saying it is bad public policy because of major repair and maintenance needs in the public schools.

While the state Department of Education had opposed the measure in previous years, Hamamoto said yesterday she is now convinced approval of constitutional amendment No. 2 on this year's general election ballot won't affect the department's funding for construction or repair and maintenance projects.

The amendment would allow private secondary schools, colleges and universities to obtain financing through special purpose revenue bonds issued by the state for construction projects at lower interest rates than they could get at financial institutions.

"We have no reservations in supporting, and we also encourage and promote that we do pass this bill so that all children will have a safe environment and a very conducive and an exemplary learning environment," Hamamoto said.

At a briefing yesterday, legislative leaders explained why they support the amendment.

Senate Education Chairman Norman Sakamoto (D, Moanalua) said these bonds are issued where there is a public purpose. In this instance, they help nonprofit private schools with lower interest loans for construction or renovation and do not obligate the state in any way.

K. Mark Takai (D, Newtown), House vice chairman of education, added that more than 80 percent of other states allow private schools to use tax-exempt bonds. He said it's a misconception that only larger and better endowed Hawaii private schools will benefit. Smaller private schools will benefit just as much or more, he said.

Takai added that in recent years, the Legislature has approved $1.1 billion in special purpose revenue bonds for recycling centers, processing plants, landfills, early childhood education centers and high-tech development centers.

"If we've already funded these types of enterprises, there's no reason why we should not be supporting this constitutional amendment," Takai said.

House Education Chairman Ken Ito (D, Kaneohe) explained that the proposed amendment has been before the Legislature for the past four years and only this spring did it get the two-thirds vote needed to pass.

The measure has built-in check and balances to ensure the bond money isn't abused, Ito said. He added that the measure does not allow the money to be used to build or renovate churches or chapels.

The key issue for Ito was to not say "no" to the schools, which teach about 30,000 children.

"If there's a way for the state to help without taking away from the public schools and without violating any laws, then we must help," Ito said.

Nevertheless, HSTA officials said last week that public schools, which serve 80 percent of the state's students, face a $600 million backlog in repair and maintenance projects. The state should focus on addressing that problem, they said.

Karen Ginoza, HSTA president, said that if state resources, such as special purpose revenue bonds, are going to be used, they should benefit the public good in Hawaii. The mission of private schools do not serve that public good, she said.

"Amendment question two fails to measure up and we are asking voters to vote 'no,'" she said.



State Department of Education




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