The Department's Budget

The Department operates Hawaii's public schools on a $1.9 billion budget comprised primarily of state funds (81 percent), as well as federal, special and trust funds. Hawaii is 17th 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 timeline

This applies to both the Operating and Capital Improvement Projects (CIP) budgets. Timeline for the current fiscal year (FY 2016) is shown here:

  1. FALL 2014: After collecting requests from principals, district leaders and program managers, HIDOE presents a budget request to Board of Education (BOE) approval.
  2. DEC. 2014: Governor considers HIDOE request for inclusion into Executive Budget, submits to Legislature.
  3. EARLY 2015: HIDOE discusses budget with Legislature during 2015 session, Legislature makes its amendments. Through the process, budgets approved by the BOE, Governor, and Legislature are brought into alignment.
  4. APR. 2015: Legislature appropriates funds at end of session.
  5. JULY 1, 2015 - JUNE 30, 2016: Governor releases funds in increments based on revenue projections throughout the Fiscal Year. The governor has until the end of FY2016 to release funds. The Hawaii DOE allocates funds to schools and offices ​as they are released​.

WHERE ARE WE NOW?
The Supplemental Budget request for FY 2016-17, which covers July 1, 2016 to June 30, 2017, is currently before the Legislature. Details of those requests are found in the larger sections below: Operating Budget and CIP Budget

The BOE has approved a request of:

  • ​$70.1 million in operating budget funds
  • $455.5 million in state CIP budget funds
  • View memo to BOE with request, amended and approved by BOE on October 20 to include additional funds for the Future Ready Learning initiative and professional development for teachers and school leaders.
  • $45.7 million in operating budget funds
  • $112.8 million in state CIP budget funds

On January 7, 2016, HIDOE officials presented the Executive Request to the Ways & Means and Finance Committees of the Hawaii State Legislature, and to the Education Committees on January 22. Click to view the presentation.​

The House passed its budget bill (HB1700) in March 2016 with
  • $17 million in operating budget funds
  • $331.5 million in state CIP budget funds
The Senate passed its budget bill (HB1700, HD1 SD1) in April 2016 with
  • $43.8 million in operating budget funds
  • $356.3 million in state CIP budget funds

View a line-item list​ of the supplemental budget request showing HIDOE/BOE, Executive, House and Senate budget positions.

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

Each year, the Hawaii State Department of Education educates and supports more than 180,000 students and employs about 25,000 teachers and staff in positions across 290 public schools (256 Department schools, 34 charter schools), 15 complex areas, and the state office. The Operating Budget for FY 2015-16 is $1.95 billion — $1.6 billion coming from the state's General Fund.

Money is allocated from the state's General Fund into program buckets, known as EDNs. Nearly all funds go to schools.

DIRECT FUNDING (94%)
  • EDN 100 (58%) 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 (23%) supports special education students who may require or have an Individualized Education Plan (IEP).
  • E​DN 400 (13%) pays school bills — sewer, electric, water, repair, food service and others.
SUPPORT FUNDING (6%)

APPROVED: FY 2015-16
Here is a breakdown, by program category, of the $1.53 billion the State Legislature appropriated for FY 2015-16 during the 2015 session (HB 500 CD1​), to be released by the Governor by June 30, 2016. Amounts are in millions, and percentages are rounded:

CATEGORY STATE FUNDS %

EDN 100: School Based Budgeting$880.3 58%
EDN 150: Special Education$351.5 23%
EDN 200: Instructional Support$50.6 3%
EDN 300: State Administration$47.0 3%
EDN 400: School Support$195.2 13%
EDN 500: School Community Services$3 < 1%
EDN 700: Early Learning$3.1 < 1%

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
  • 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
  • Equity: Science Facilities, Special Education, Energy Improvement, Right-sizing of spaces, Physical Education, Noise/Heat Abatement
    • NOTE: In response to heat concerns, HIDOE has been approved to shift $20 million from ​the funded "condition" bucket to accelerate emergency cooling efforts.

CIP BUDGET REQUESTS & APPROPRIATIONS
Amounts are in millions. Shows HIDOE CIP budgetary requests and Legislative appropriation. HIDOE's $455.5 million supplemental CIP budget request for FY17 will be discussed at the 2016 Session of the Legislature.

FY16 (Biennium Budget) FY17 (Biennium Budget) FY17 (Supplemental Budget)
  REQUESTED APPROVED REQUESTED APPROVED REQUESTING
Condition $134 $134 $129 $66 $64
Capacity $144 $10 $162.8 $0 $234
Equity $91 $15.3 $84 $3 $92.1
Program Support $28.7 $16.5 $35.2 $1 $57.5
Project Positions $8.5 $6.5 $8.5 $6.5 $2
Legislative Add-Ons $90
Solomon El (DOD matching funds) $5.9
Priority Line-Items, Mililiani Middle classroom $15.6 $1.5
TOTAL $406.2 $287.9 $419.5 $78 $455.5

The FY17 Supplemental Budget request ask ($455.5 million) plus the FY17 Appropriation from the state ($78 million) means the full funding being sought is $533.5 million. The list of Legislative add-on projects can be seen each year in the final budget bill, under "G. Formal Education EDN 100 - School-Based Budgeting." View the 2015 Session budget bill, with funding amounts and projects for FY16. ​

Funding sources

​​The Department’s 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 — by far.
  • 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.
budget chart​​

Here is a breakdown of Department Operating budget funding across all sources dating to FY 2008-09
(Source: Executive Biennium and Supplemental Budget Bills):


FY2015-16 FY2014-15 FY2013-14 FY2012-13
General funds $1,530,655,758 $1,402,889,559 $1,399,913,038 $1,348,108,657
Federal funds $258,012,049 $250,994,824 $259,250,749 $284,547,256
Special funds $96,755,7477 $95,339,367 $95,339,367 $96,535,944
Trust funds $17,640,000 $24,290,000 $24,290,000 $32,919,060
TOTAL $1,903,063,554 $1,773,513,750 $1,778,793,154 $1,762,110,917

FY2011-12 FY2010-11 FY2009-10 FY2008-09
General funds $1,365,566,677 $1,253,433,452 $1,396,097,613 $1,394,564,070
Federal funds $311,496,353 $305,716,386 $374,991,570 $261,847,302
Special funds $88,045,223 $79,055,420 $75,406,544 $67,782,450
Trust funds $32,990,000 $13,716,215 $13,750,000 $13,750,000
TOTAL $1,798,098,253 $1,651,921,473 $1,860,245,727 $1,737,943,822

How does Hawaii’s educational spending compare?

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 report on Public Education ​Finances​, reflecting Fiscal Year 2013 data, released in June 2015 (figures pulled from Tables 11 and 12):

  • FY 2013 PER-PUPIL FUNDING: $11,823
REVENUES — Hawaii is:
  • 19th 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 18 other states.
  • 39th in the nation for revenue per $1,000 of personal income in the state. Hawaii's public schools are given $36.74 for every $1,000 of income earned in the state. Thirty-eight other states spend a larger fraction of personal income on public schools. The U.S. average is $42.25. The highest is Alaska at $69.03.
SPENDING — Hawaii is:
  • 17th in the nation for per-pupil spending. We are:
    • 19th in the nation for spending on instruction ($6,949 per pupil)
    • 51st in the nation (last among all states and D.C.) for spending on general administration ($63)
    • 11th in the nation for spending on school administration ($738)
UNDERSTANDING PER-PUPIL FUNDING

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 2014-15, per-pupil funding for the Department and charter schools was $6,315.02.

Annual Financial Audit

The most recent Annual Financial Audit​, covering the 2014 fiscal year (FY 2014), shows the Department is doing a better job at keeping its finances in order. The independent report analyzed financial statements of the public school system, including operating, capital improvement and federal funds. 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

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