The Hawaii State Department of Education accounts for more than 185,000 students, spread among 289 public schools (255 Department schools and 34 charter schools); and about 28,000 teachers and employees in positions across all school campuses, 15 complex areas, and the state office.
So it's no wonder that the Department’s Operating budget is annually given a large share of the state’s general funds — roughly $1.4 billion. Each year, when the Legislature convenes and the budget is analyzed, the Department gets a lot of attention — rightly so. Here’s the breakdown:
- Six buckets, known as EDNs, make up the Department’s general fund budget. (See chart for breakdown of state funds allocated for each; percentages are rounded.)
Nearly all funds go directly to schools.
- About 58 percent is parceled into EDN 100, which goes directly to schools. Almost all of that is an amount distributed to schools using a
Weighted Student Formula. 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 funnels another 23 percent of state education dollars to support
special education students who may require or have an individualized education plan.
- EDN 400 pays school bills — sewer, electric, water, repair, food and others. That’s another 12 percent of the budget.
- The remainder of the budget is spread among EDNs 200, 300 and 500 for expenses such as instructional supports, statewide testing, administrative support (personnel, technology and fiscal), community programs such as A+ and adult education, complex area administration, as well as the Board of Education and Office of the Superintendent.
Taken together, EDNs 100, 150 and 400 — monies that support schools directly — account for about 94 percent of the state’s education budget. Monies in the other EDNs support efforts at the state, Complex Area and school levels.
Fiscal Year 2014-15
Here is a breakdown of the $1.403 billion the State Legislature appropriated for Fiscal Year 2014-15 during the 2013 session and amended with supplemental request in 2014 session (Act 122).
| CATEGORY|| STATE FUNDS|
|EDN 100: School Based Budgeting||$812.9 million|
|EDN 150: Special Education||$325.5 million|
|EDN 200: Instructional Support||$47.4 million|
|EDN 300: State Administration||$43.3 million|
|EDN 400: School Support||$171.2 million|
|EDN 500: School Community Services||$2.5 million|
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 Department’s Operating budget. You can view how these funds are allocated among the 259 school facilities that are managed by the Department by going to our FacTrak website to search for projects by school, Complex Area, Legislative district and more.
Budget proposal: Fiscal Biennium 2015-17
In advance of the 2015 Legislative session, the Department is submitting its request for the next Fiscal Biennium (FB) budget, including (1) funds to restore cuts and restrictions for basic operations to maintain minimum standards, and (2) funds for strategic investments to grow student and staff success and expand successful systems of support.
Basic Operations include investments in:
- Skilled nursing services
- Weighted Student Formula
- Workers Compensation Benefits
- Civil Rights Compliance
- School Bus, Food and Utilities
Strategic Investments include:
- Future Ready Learning
- Advanced Placement
- Strive HI Awards
- Digital literacy program licenses (Achieve3000)
- School Improvement Process (Accreditation)
Funding the budget
The Department’s Operating budget funding comes from four sources:
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 2007-08
(Source: Executive Biennium and Supplemental Budget Bills):
| General funds|| $1,402,889,559|| $1,399,913,038|| $1,348,108,657|| $1,365,566,677|
| Federal funds|| $250,994,824|| $259,250,749|| $284,547,256|| $311,496,353|
| Special funds|| $95,339,367|| $95,339,367|| $96,535,944|| $88,045,223|
| Trust funds|| $24,290,000|| $24,290,000|| $32,919,060|| $32,990,000|
TOTAL|| $1,773,513,750|| $1,778,793,154|| $1,762,110,917|| $1,798,098,253|
| General funds|| $1,253,433,452|| $1,396,097,613|| $1,394,564,070|| $1,401,562,416|
| Federal funds|| $305,716,386|| $374,991,570|| $261,847,302|| $262,206,533|
| Special funds|| $79,055,420|| $75,406,544|| $67,782,450|| $64,659,825|
| Trust funds|| $13,716,215|| $13,750,000|| $13,750,000|| $6,300,000|
TOTAL|| $1,651,921,473|| $1,860,245,727|| $1,737,943,822|| $1,734,728,774|
How does Hawaii’s educational spending compare?
Elementary and secondary educational funding and spending is typically expressed “per pupil” — how much school districts are taking in and spending divided by the number of students served. You can view this data compiled by the
National Center of Education Statistics (NCES) for Fiscal Year 2011 (most recent data available). Highlights:
Table 5: Inflation-adjusted current expenditures per pupil among states shows Hawaii at $11,924 per pupil; the national average is $10,658.
Table C-6: Hawaii's "administration" expenditures (includes general, school, and other support services administration) are among the lowest in the country as a percent of total expenditures — only 6 states and 1 territory have lower rates.
Understanding per-pupil funding
The NCES reported per-pupil funding amounts cited above includes monies from EDNs 100-400, and includes all means of finance: general (from the state’s general fund), special and federal. It also includes fringe benefits for general-funded employees that are not appropriated/budgeted in the Department’s EDNs — since they are budgeted centrally at the Department of Budget and Finance for all general-funded employees. Therefore these reported per pupil amounts are higher than one would calculate if only factoring in funds appropriated directly to the Department.
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 2013-14, per-pupil funding for the Department and the public charter schools was $6,127.61.
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.