• Hawaii DOE Budget Presentation
• Testimony Tables
• Appendix
  

• HB 2200, HD1 SD1 (Act 007, Session Laws of Hawaii 2020).
  
• HB 2200, HD1 SD1 Committee Report.
• HB 2200 HD1 SD1 Budget Worksheets.

On July 31, 2020, the Governor signed SB 126 SD1 HD1 CD1 into law as Act 009, SLH 2020, incorporating line-item vetoes per Governor’s Message No. 1112, dated July 30, 2020.

Act 009, SLH 2020

Governor's Message No. 1112

The Governor’s line-item vetoes did not have a direct impact on the Department’s appropriations for FY 21.  

Although the net change to the Department’s general fund appropriation was -$88,785,572 for FY 21 due to the incorporation of existing appropriations from Act 276, SLH 2019, the overall impact of Act 009, SLH 2020, is a $100.2 million reduction to the Department's general fund base budget.

Act 009, SLH 2020, also did not include any of the Department’s requests for additional appropriations for its supplemental FY 2021 budget, that were submitted to the Legislature as part of the Governor’s Supplemental Executive Budget. 

The 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.
• 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 (yellow): 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 (green): May include donations & gifts, foundations & other grants, school athletic program activity collections, and “fair share” and School Impact District​ developer fees.
  

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):

The Capital Improvements Program budget

The Capital Improvements Program (CIP) pays for 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 are expended in these buckets. They are:

• Capacity: New Schools, new classroom buildings, classroom additions, expansions, portable replacement, land acquisition
  
• Repair & Maintenance: Building envelope preservation, structural repairs
• Health & Safety: Traffic safety and parking, flood mitigation, security/vulnerability, hazardous materials, heat abatement
• Compliance: ADA, Title IX
• Instructional: Facilities meeting particular program requirements of Career and Technical Education, STEM, Arts, Special Education, and EDSPEC instructional spaces
• Innovation: Energy efficiency, alternative energy, revenue generation, public/private partnerships
• Support: Administration, library, food service, PE/Athletics, electrical upgrades, state/district/complex offices, EDSPEC support spaces
• Equipment: 21st Century furniture
• Project Completion: Supplemental consultant services, project cost overruns
• Technology Infrastructure: Network equipment, program bells, paging system

CIP BUDGET REQUESTS & APPROPRIATIONS
Amounts are rounded​. The chart shows Board-approved CIP budgetary requests (REQUESTED) and the Legislature's appropriation (APPROVED) for the next fiscal biennium. Amounts in the supplemental budget will change when that request is submitted and reviewed during the 2020 Legislative session. Special requests and line items are noted below the subtotal.

Financial reporting under ESSA

The federal Every Student Succeeds Act (ESSA) has a per-pupil expenditure (PPE) reporting requirement, as follows:　

The Hawaii DOE began reporting the PPE on a statewide basis and for individual school beginning in 2019, using fiscal year 2017-18 data. On an annual basis, the Department will update these reports and post them to our ESSA dashboard site. To learn more about how PPE is calculated at these various levels, and to understand the factors that drive variances between schools, please review:

• PPE Factsheet 
  
• State-level PPE FY 2019, FY 2018
  

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 2017 data, released April 2019 (figures pulled from Summary Tables 11 and 12). All rankings are based on the 50 states and the District of Columbia:

• FY 2017 PER-PUPIL SPENDING: $14,322. The national average is $12,201.

REVENUES — Hawaii is:

• 16th in the nation for per-pupil revenue, down from 12th in the nation the year prior. Hawaii has one of the highest costs of living in the country, yet its school system receives less than 15 other states.
  

• 39th in the nation for revenue per $1,000 of personal income in the state, down from 25th in the nation the year prior. Hawaii's public schools are given $39.15 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 $43.07. The highest is Alaska at $60.41.

SPENDING — Hawaii is:

• 15th highest in the nation for per-pupil spending. We are:
• 15th in the nation for spending on instruction at $8,373 per pupil (U.S. average is $7,406).
• 51st in the nation (lowest) for spending on general administration at $72 per pupil (U.S. average is $230).
  
• 5th in the nation for spending on school administration at $1,029 (U.S. average is $674).

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. The state's per pupil funding formula, contained in statute §302D-28, is based on the DOE's EDN 100, 200, 300, and 400 general fund budget. By that base calculation, for FY 2017-18, per-pupil funding for the Department and charter schools was $7,359, 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 2019 report released April 13, 2020. View report.

Past audits, dating back to 2002, can be found in our Report Finder tool.

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 2000

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