Legislature earmarks $569 million for schools
15 new hires will help schools mind money
The state Department of Education plans to use a small percentage of the $569 million that the Legislature has budgeted to make sure none of the money goes to waste.
For the first time, the department will use $2.5 million to hire 15 business managers who will help schools handle their money.
The positions come in response to last year's audit of Kailua High School, which questioned whether public schools were ready for a new law giving them more flexibility on how to spend money.
The schools budget still needs approval from Gov. Linda Lingle.
With salaries and federal funds added, the schools budget could reach $2.4 billion in the 2007-08 fiscal year, up from about $2.2 billion this year.
EYEING a $700 million state budget surplus, the Department of Education was not shy when it asked the Legislature for money this session.
Lawmakers trimmed the DOE's request by about 30 percent, but the Legislature still agreed to a $569 million schools budget for the next two fiscal years. It includes $387.8 million for construction and $182 million for operating expenses.
About $111 million of construction money will go toward building renovations, electrical upgrades, air conditioning and playground equipment. The operating expenses include $24 million to cover higher costs of bus transportation and $40.2 million for schools to use at their discrepancy.
"It wasn't like we were asking for everything, but on the other hand, we figured this wasn't the year to hold back, either," said DOE spokesman Greg Knudsen. "If we have some real needs, we should at least list them."
The funds still need approval from Gov. Linda Lingle.
"We are going to, particularly with the budget, do a very thorough review of the proposed spending," said Linda Smith, the governor's senior policy adviser.
If the governor approves the budget, the department will for the first time use $2.5 million to hire 15 business managers who will help schools handle their money.
The positions, one for each complex area, were considered after a critical management audit of Kailua High School cited several concerns about its finances. Among the findings, the audit said it could not account for $1 million of the school's $2 million property inventory and $500,000 in equipment, including about $200,000 worth of electronics from the school's discontinued media center.
State education officials have said the problems found at Kailua are not unique, as administrators have been asking for more support since 2004, when a state law gave individual schools more authority over their budgets.
"We do have educators who sometimes don't necessarily have the strongest business-operations background," Knudsen said, adding that business managers "are going to be checking the books and help provide general financial assistance to schools."
Rejected from the DOE's budget was $40 million that officials wanted to use to replace old classroom equipment, and $17.6 million for two additional months of pay per year over two years for vice principals whose jobs were supposed to change from 10 months to 12 months.
But House Finance Chairman Marcus Oshiro said lawmakers are giving schools $20.1 million in each of the next two fiscal years under the Weighted Student Formula.
"That allows the principals at the schools to decide how they are going to spend the money," he said. "So they can use it to purchase new equipment, computers, or they can use to hire another teacher or counselor, tutor or textbooks."
With salaries and federal funds added, the schools budget could reach $2.4 billion in the 2007-08 fiscal year, up from about $2.2 billion this year.
THE ARITHMETIC OF PUBLIC EDUCATION
The Legislature is giving schools $569 million for operating costs and construction in the next two fiscal years.
THE FUNDS INCLUDE:
» $24 million for higher costs of bus transportation.
» $40.2 million to be shared by schools under the Weighted Student Formula.
» $8.5 million for services like tree trimming, air conditioning, elevators and trash pickup.
» $4.5 million for rising electricity bills.
» $2.5 million for 15 business managers to help schools spend their money.
WHAT THE BUDGET WILL NOT FUND:
» $42.1 million for a new school, Kapolei II Elementary
» $40 million to replace classroom equipment
» $17.6 million for two additional months of pay per year over two years for vice principals whose jobs were supposed to change from 10 months to 12 months
» $2 million to develop and implement standards-based curriculum
» $1.7 million to monitor compliance with federal and state laws and programs and to perform audits
» $1 million to address a shortage of teachers licensed to teach visually impaired students
Source: State Department of Education
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