Budget process timeline
This applies to both the Operating and Capital Improvement Projects (CIP) budgets. Most recent fiscal year (FY 2016) timeline shown here:
HIDOE goes to Board of Education for budget approval: Fall 2014
Governor considers request for inclusion into Executive Budget, submits to Legislature: Dec. 2014
HIDOE discusses Executive Budget with Legislature during 2015 session, Legislature makes its amendments
Legislature appropriates funds at end of session: April 2015
Governor allocates (releases) funds in increments based on revenue projections beginning July 2015 through June 30, 2016 (FY2016).
HIDOE expends funds as they are released
WHERE ARE WE NOW?
We are heading into discussions for the Supplemental Budget for FY 2017, which covers July 1, 2016 to June 30, 2017. Details of those requests are found in the sections below:
Operating Budget and
Capital Improvement Projects Budget. We are requesting:
- $70.1 million in operating budget funds
- $455.5 million in CIP budget funds
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 $1.9 billion — $1.5 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%)
SUPPORT FUNDING (6%)
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).
EDN 400 (13%) pays school bills — sewer, electric, water, repair, food service and others.
The remainder of the budget is spread among
EDNs 200, 300, 500 and
700, which provide support at school, district and state levels. These include
instructional supports, statewide
testing, administrative support (personnel, technology and fiscal), community programs such as
adult education, Complex Area
administration, the early learning office to provide
pre-kindergarten programs, as well as the
Board of Education and Office of the Superintendent.
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).
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||
|EDN 700: Early Learning||$3.1||
SUPPLEMENTAL BUDGET REQUEST (FY 2016-17)
The Board of Education approved HIDOE's Operating Budget request for FY 2016-17 on Oct. 20, 2015. HIDOE's $70 million supplemental operating budget request for FY17 will be discussed at the 2016 Session of the Legislature. A line-item breakdown of requests can be viewed
here. These tables show the $70 million breakdown by type of investment (basic or strategic) and direct beneficiary (school or all-levels). Amounts are in millions, and numbers are rounded.
| Basic Operations|| $54.2|| || School-Level|| $66 |
| Strategic Investment|| $15.8|| || All Levels|| $4 |
| TOTAL|| $70|| || TOTAL|| $70 |
Here is the breakdown by program category:
|EDN 100: School Based Budgeting||$46.6|
|EDN 150: Special Education||$3.56|
|EDN 200: Instructional Support||$0.14|
|EDN 300: State Administration||$0.94|
|EDN 400: School Support||$18.8|
|EDN 500: School Community Services||0|
|EDN 700: Early Learning||$.17|
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) |
| 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|
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.
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.
Here is a breakdown of Department Operating budget funding across all sources dating to FY 2008-09
(Source: Executive Biennium and Supplemental Budget Bills):
| 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|
| 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:
UNDERSTANDING PER-PUPIL FUNDING
SPENDING — 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.
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)
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.
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.