We presented the Executive Budget for the 2017-19 fiscal biennium to the Ways and Means and Financial committees of the Hawaii State Legislature on Jan. 17, 2017, and to joint education committees on Jan. 23. View the presentation
here. The budget went through several iterations during the 2017 Legislative Session.
- ACT 49: FINAL BUDGET
- Operating Budget [VIEW]
- Operating Budget drafts: Legislative Conference [VIEW], Senate [VIEW], House [VIEW]
- CIP Budget [VIEW]
- EXECUTIVE REQUEST (what the Governor approved):
- Operating Budget [VIEW]
- CIP Budget [VIEW]
- BOARD OF EDUCATION (what HIDOE requested and Board approved):
The Operating Budget
Each year, the Hawaii State Department of Education educates and supports more than 180,000 students and employs about 22,000 teachers and 10,000 support staff in positions across 292 public schools (256 public schools, 36 charter schools), 15 complex areas, and the state office. The Operating Budget for FY 2017-18 is $1.983 billion — $1.61 billion coming from the state's General Fund.
Money is allocated from the state's General Fund into program categories, 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 (12%) 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.
APPROVED: FY 2017-18
Here is a breakdown, by program category, of the $1.57 billion the State Legislature appropriated for FY 2016-17 during the 2016 session (HB1700 HD1 SD1 CD1).
Amounts are in millions, and percentages are rounded:
| CATEGORY|| STATE FUNDS|| %|
|EDN 100: School Based Budgeting||$941.6|| 58%|
|EDN 150: Special Education||$367.7|| 23%|
|EDN 200: Instructional Support||$53.7|| 3%|
|EDN 300: State Administration||$49.8|| 3%|
|EDN 400: School Support||$190.6|| 12%|
|EDN 500: School Community Services||$3.7||
|EDN 700: Early Learning||$3.2||
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 HIDOE- and Board-approved CIP budgetary requests (REQUESTED) and the Legislature's appropriation (APPROVED).
- The approved FY18 Capacity category is comprised of four major projects — Campbell High ($27 million), a new East Kapolei Middle School ($77 million), a new Kihei High School ($63 million), and Pohukaina El ($10 million).
|FY18 (Biennium Budget) ||FY19 (Supplemental Budget) |
| Condition|| $159.3|| $90.0|| $143.9|| $ --|
| Capacity|| $259.6|| $177.0|| $178.9||
| Equity|| $146.0|| $33.0|| $86.4||
| Program Support|| $100.7|| $33.0|| $87.9||
| Priority Items, Project Positions/Adjustments|| $9.0|| $4.3|| $9.0||
Special: Act 57, energy eff./heat abatement||$30.8||$46.4||
The Capital Improvement Projects budget is almost entirely funded by the State of Hawaii. 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 — 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 2009-10
(Source: Executive Biennium and Supplemental Budget Bills):
| General funds|| $1,567,678,982||
| Federal funds|| $265,034,049||
| Special funds|| $83,954,451||
| Trust funds|| $17,640,000||
| General funds||
| Federal funds||
| Special funds||
| Trust funds||
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 2015 data, released in June 2017 (figures pulled from Tables 11 and 12):
FY 2015 PER-PUPIL SPENDING: $12,855. The national average is $11,392.
REVENUES — Hawaii is:
UNDERSTANDING PER-PUPIL FUNDING
SPENDING — Hawaii is:
17th 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 16 other states.
37th in the nation for revenue per $1,000 of personal income in the state. Hawaii's public schools are given $40.97 for every $1,000 of income earned in the state. Thirty-six other states spend a larger fraction of personal income on public schools. The U.S. average is $43.42. The highest is Alaska at $72.61.
17th in the nation for per-pupil spending. We are:
- 19th in the nation for spending on instruction at $7,554 per pupil (U.S. average is $6,903)
- 50th in the nation for spending on general administration at $70 per pupil (U.S. average is $218)
- 9th in the nation for spending on school administration at $871 (U.S. average is $626)
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.
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 2016 report released March 24, 2017.
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.