The Department's Budget

The Department operates Hawaii's public schools on a $1.99 billion budget comprised primarily of state funds (81 percent), as well as federal, special and trust funds. It develops and upgrades facilities with a separate budget sourced almost entirely from the state. Hawaii is 15th in the nation for per-pupil spending. Learn about the Operating and Capital Improvement Projects budgets, state comparisons and more.

Budget factsheetHow it works, when it happens, where monies are spent, and other key facts about the DOE budget.​

​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​Budget process

The State of Hawaii runs its budget on a fiscal biennium that's submitted during odd-numbered years, with course-corrections and new asks submitted during the intervening years via a supplemental budget. The Board of Education approves the Department's budgetary ask annually in October. The budget is then modified by the Department of Budget and Finance before a formal submission to the Hawaii State Legislature when its session begins in January.

The Hawaii DOE's budget is comprised of:

  • An Operating Budget to cover the expense of running schools; and
  • A Capital Improvements Budget to cover the expense of developing and upgrading school facilities and campuses.

Information about the current cycle follows. This chart provides an overview of what the budget process looks like.

FY 2019
The supplemental budget for fiscal year 2019 was approved by the Board of Education on Oct. 17, 2017, reviewed by the Department of Budget and Finance, and presented to the Hawaii State Legislature in January. (View the presentation here.) House decisions were released in March, Senate decisions were released in April. The Governor signed HB 1900, HD1, SD2, CD1 on June 22, 2018 and it became Act 53, SLH 2018.

  • Operating Budget [VIEW]
  • CIP Budget [VIEW]

    FB 2017-19
    The DOE presented the Executive Budget for the 2017-19 fiscal biennium to the Hawaii State Legislature in January 2017. View the presentation here. The budget went through several iterations during the 2017 Legislative Session. Act 49, SLH 2017 was approved on May 4, 2017.

    • Operating Budget [VIEW
    • CIP Budget [VIEW]

    ​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​The Operating Budget

    Each year, the Hawaii State Department of Education educates and supports about 180,000 students and employs about 22,000 teachers and 10,000 support staff in positions across 292 public schools, 15 complex areas, and the state office. The Operating Budget for FY 2019 is $1.99 billion — $1.63 billion coming from the state's General Fund. Funds are distributed by program categories, known as EDNs. Nearly all funds go to schools.

    DIRECT-TO-SCHOOL FUNDING (93.4%)
    • EDN 100 (58.2%) is almost entirely distributed to schools using the Weighted Student Formula (WSF). The WSF gives schools a specific dollar amount for each student, and additional funds for students with certain characteristics, such as qualifying for the free and reduced lunch program (socioeconomically challenged) or being English Language Learners. This creates a transparent model of funding equity on a statewide basis. The balance of EDN 100 is used to support programs such as Athletics, JROTC and Alternative Learning Centers.
    • EDN 150 (22.6%) supports special education students who may require or have an Individualized Education Plan (IEP).
    • E​DN 400 (12.1%) pays school bills — sewer, electric, water, repair, food service and others.
    • EDN 500 (0.2%) pays for Adult Education programs at public schools.
    • EDN 700 (0.2%) pays for pre-kindergarten programs at public schools.
    SUPPORT FUNDING AT SCHOOL, DISTRICT, AND STATE LEVELS (6.6%)

    FY 2019
    Here is a breakdown, by program category, of the $1.63 billion the State Legislature appropriated for FY 2019 during the 2018 session. Amounts are in millions, and percentages are rounded:

    CATEGORY STATE FUNDS %
    EDN 100: School Based Budgeting$948.3
    58.2%
    EDN 150: Special Education$367.7 22.6%
    EDN 200: Instructional Support$56.1
    3.4%
    EDN 300: State Administration$51.7
    3.2%
    EDN 400: School Support$197.6
    12.1%
    EDN 500: School Community Services$3.9
    < 1%
    EDN 700: Early Learning$3.8
    < 1%

    FUNDING SOURCES

    The Operating Budget funding comes from four sources (see pie chart, below):

    • General funds (blue): Comes from the State of Hawaii’s general fund, primarily state tax revenues. This is the top source of funding to the Department.
    • Federal funds (red): The Department receives grants from federal agencies including the U.S. Departments of Education, Agriculture, Defense and Health and Human Services.
    • Special funds (green): Those coming from revenue-generating activities, including school food services, student bus transportation services, summer school program, after-school programs, adult education, driver education, and use of school facilities.
    • Trust funds (purple): May include donations & gifts, foundations & other grants, school athletic program activity collections, and “fair share” and School Impact District​ developer fees.
    pie chart


    FUNDING LEVELS

    Here is a breakdown of the Department's Operating budget funding across all sources dating to FY10 (Source: Executive Biennium and Supplemental Budget Bills):

     GENERAL FUNDSFEDERAL FUNDSSPECIAL FUNDSTRUST FUNDSTOTAL
    FY19$1,629,121,724$270,081,479$84,300,419$15,900,000$1,999,403,622
    FY18$1,610,321,050$272,881,479$84,150,419$15,900,000$1,983,252,948
    FY17$1,567,678,982$265,034,049$83,954,451$17,640,000$1,934,307,482
    FY16$1,530,655,758$258,012,049$96,755,747$17,640,000$1,903,063,554
    FY15$1,402,889,559$250,994,824$95,339,367$24,290,000$1,773,513,750
    FY14$1,399,913,038$259,250,749$95,339,367$24,290,000$1,778,793,154
    FY13$1,348,108,657$284,547,256$96,535,944$32,919,060$1,762,110,917
    FY12$1,365,566,677$311,496,353$88,045,223$32,990,000$1,798,098,253
    FY11$1,253,433,452$305,716,386$79,055,420$13,716,215$1,651,921,473
    FY10$1,396,097,613$374,991,570$75,406,544$13,750,000$1,860,245,727


    The Capital Improvement Projects Budget

    Capital Improvement Projects (CIP) are renovations, repairs and major maintenance to existing facilities, landscape improvements, new construction, land acquisition, and utility modifications. The CIP Budget is set by the state as part of a comprehensive program to manage state facilities, and is handled separately from the DOE’s Operating Budget.​ Facilities staff work with principals directly to prioritize school-level needs. 

    Like the EDNs for the Operating Budget, CIP appropriations are added into planning categories that direct how the funds can be used. Funds appropriated can only be expended in those buckets. They are:

    • Condition: Repair & Maintenance, Electrical/Technology Infrastructure, Hazardous Material Removal, Health & Safety, Structural Improvements
    • Equity: Science Facilities, Special Education, Energy Improvement, Right-sizing of spaces, Physical Education, Noise/Heat Abatement
    • Program Support: Gender Equity, New Restrooms, ADA Compliance, Support Program Spaces, Playground Equipment
    • Capacity: New Schools, Classroom Additions, Temporary Facilities, Repurposing existing to create capacity

    CIP BUDGET REQUESTS & APPROPRIATIONS
    Amounts are in millions and rounded​. The chart shows Board-approved CIP budgetary requests (REQUESTED) and the Legislature's appropriation (APPROVED).

    FY18 (Biennium Budget) FY19 (Supplemental Budget)
      REQUESTED APPROVED REQUESTED APPROVED
    Condition $159.3 $90.0 $213.3
    $ 54.5
    Capacity $259.6 --
    $247.0
    --
    Equity $146.0 $33.0 $199.4
    10.0
    Program Support $100.7 $33.0 $123.9
    17.0
    Lump Sums (project completion, TItle IX, equipment)
    $9.0 --
    --
    $ 33.0
    TOTAL $674.6 $156.0 $783.6 $ 114.5
    Legislative Add-Ons$118.5 $166.9
    Special: Act 57, energy eff./heat abatement$30.8$46.4 ----
    TOTAL $705.4 $320.9 $783.6 $281.4

    How does Hawaii’s educational spending compare nationally?

    The funding of public schools is typically expressed “per pupil” — how much school districts are taking in and spending divided by the number of students served. It is helpful to look at Hawaii's spending relative to other states and the District of Columbia. Here are some key findings of the U.S. Census Bureau’s annual survey reflecting Fiscal Year 2016 data, released May 2018 (figures pulled from Summary Tables 11 and 12):

    • FY 2016 PER-PUPIL SPENDING: $13,748. The national average is $11,762.
    REVENUES — Hawaii is:
    • 12th in the nation for per-pupil revenue. Hawaii has one of the highest costs of living in the country, yet its school system receives less than 11 other states.
    • 25th in the nation for revenue per $1,000 of personal income in the state. Hawaii's public schools are given $43.52 for every $1,000 of income earned in the state. Twenty-four other states spend a larger fraction of personal income on public schools. The U.S. average is $43.15. The highest is Wyoming at $61.86.
    SPENDING — Hawaii is:
    • 15th highest in the nation for per-pupil spending. We are:
      • 16th in the nation for spending on instruction at $8,066 per pupil (U.S. average is $7,160)
      • 48th in the nation for spending on general administration at $97 per pupil (U.S. average is $226)
      • 8th in the nation for spending on school administration at $924 (U.S. average is $651)
    UNDERSTANDING PER-PUPIL FUNDING

    This nationally reported per-pupil funding includes monies from EDNs 100-400, and includes all means of finance: state, federal, special and trust. It also includes fringe benefits for general-funded employees that are not appropriated in the Department’s EDNs — since they are budgeted centrally at the Department of Budget and Finance for all general-funded employees. This is important to understand because it creates an appearance of a substantial difference between the amount of per-pupil funding given to the Department and that given to the state’s public charter schools, which only looks at EDNs 100-400 relating to the state’s general fund — this is the funding formula in statute under Act 106, Session Laws of Hawaii 2012. By that base calculation, for FY 2015-16, per-pupil funding for the Department and charter schools was $6,911.15, and is adjusted each year to align with funding levels for the Department.

    Annual Financial and Single Audit Report

    An independent report analyzing financial statements of the public school system, including operating, capital improvement and federal funds. FY 2017 report released March 28, 2018. View report.​

    Annual Financial Report

    The Department presents its Annual Financial Report to inform the public of the total cost of public education in Hawaii. It is a key component of department accountability and public transparency. The Annual Financial Report provides both Operating and CIP fund information, including operating revenues, receipts and expenditures. We have included operational costs such as repairs and maintenance of school facilities, and other expenses incurred by state and county agencies for public education purposes.

    Budget allocations since 1999

    Links to databases of allocations to Department offices, districts and schools. View by allocation number, program and/or organization.


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    Contact Information

    Budget Branch

    Phone: 808-784-6020

    Email: doe_info@hawaiidoe.org

    Strategic Plan 2017-2020

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