The Department's Budget

There are two main parts of the Department’s budget, Operating and Capital Improvement Program (CIP). The $2.1 billion operating budget is made up primarily of state tax revenue funds (82 percent) is used for the day-to-day operations of schools and offices. The budget component for the development and upgrade of school and office facilities are from a separate Capital Improvements Program (CIP) budget sourced almost entirely from state bonds.

Navigate using the links below.
Section I: Operating Budget (click here to view cycle)
Appropriation →
→ Allocation →
→ Allotment →
→ Expenditure
Resources that have been or are in the process of being approved by the Legislature and have become law. (Legislative Reference Bureau - The Budget Process)
Appropriation amounts provided (“allocated”) to programs to create expenditures plans. Allocated amount could be less than Appropriation due to restrictions set forth by the Governor or by the Department depending on the fiscal conditions of the time.
Once the Expenditure plans are completed and approved, resources are loaded (“allotted”) into the Financial Management System allowing programs to begin spending their allotted resources.
Actual use of the resources for payroll and by either purchasing or encumbering goods or services.
Timeline
Allocation Reports
HRS 37.42 (pdf)
ESSA Reporting
Challenges including the $100.2 million reduction that began in FY 2021.
 
 
Annual Financial and Single Audit Reports
Reports:
Archives
 
 

Reports:

Monthly CARES and ESSER Act Spending Reports

Quarterly reports (Carryover, Impact Aid, School food services, Student transportation, and Utilities)

Section II: CIP Budget (Click here for information on CIP)
Section III: Federal Education Stabilization Funds
Section IV: Appendix

Timeline of major events for operating budget for biennium periods July 1, 2021–June 30, 2022, and July 1, 2022–June 30, 2023


Date

Organization

Link

​9/16/2021
​​Board of Education
​Finance and Infrastructure Committee Meeting on ESSER funds for department shortfalls.

​8/19/2021
​Board of Education
Finance and Infrastructure Committee Meeting
​7/30/2021
​Governor

​Releases Budget Execution Policies (EM 21-04) for Fiscal Year 2022 (July 1, 2021 to June 30, 2022).

Exhibit 1 showing 2% restriction

​7/8/2021
​Legislature
​HB1299 amended and submitted to the Governor. The amendment did not change the repealing of DOE’s Private Trade, Vocational, and Technical School Licensure Special Fund so it is still being eliminated in the amended bill.
​7/6/2021
​Legislature
​Three education related bills that were vetoed were overridden by the Legislature and will become law. SB 807, HB 862 and SB 811
​7/6/2021
​Legislature

Veto Override Session
House: https://youtu.be/0_q7tPRPq1c
Senate: https://youtu.be/enZe134XtkE

​6/21/2021
​Governor

​Releases intent to veto list.
At this time, details of vetos are not yet known. This list is only to inform the Legislature of bills being considered for veto.
The final veto decision is July 6. The Governor can only veto the measures that are on this list, all others will become law with or without his signature.

The governor also has the option of proposing an amended version of a bill, and lawmakers can approve the amendments with a simple majority. The governor must then sign the amended version in 10 days for it to become law.

Of those on the intent to veto list, the following bills contain direct references to the Department of Education:

HB200 - Executive Branch Budget Appropriations

HB515 - Audit; DOE; School Food Services Branch; BOE; Superintendent

HB546 - Requires complex area superintendents to report directly to the superintendent of education. Requires reports.

HB613 - State Programs; DOE; ESSER Funds; CARES Act; CRRS Appropriations Act; Appropriation

HB817 - Procurement; Produce Contracts; Local Produce; Specifications

HB862 - Pacific International Space Center for Exploration Systems; University of Hawaii at Hilo; Challenger Center Hawaii Program; Tourism Special Fund; Hawaii Tourism Authority; County Transient Accommodations Tax; Appropriation

HB1296 (page 10) - Hawaii Tobacco Settlement Special Fund; Hawaii Tobacco Prevention and Control Trust Fund; Repeal; Emergency Appropriation; Governor; Cigarette Taxes; UH; Threat Assessment Team Program; DHRD; Positions; Appropriation

HB1299 (page 16) - DOA; DAGS; DBEDT; DOE; DOH; DLIR; DLNR; DHS; PSD; DCCA; DHHL; UH; AG; DOT; Non-General Funds. Private Trade, Vocational, and Technical School Licensure Special Fund.

SB807 - Education; DOE; Academic and Financial Plan; Report

SB811 - Requires the department of education to publish a weekly report on schools that have reported positive COVID-19 cases.

​6/17/2021
​Board of Education
​Finance and Infrastructure Committee Meeting on American Rescue Plan (ARP) Education Stabilization Fund’s Elementary and Secondary School Emergency Relief (ESSER) plan.
​5/25/2021
Council of Revenues
​Updated State General Fund Revenue Projections
  • Agenda is here
  • Presentation is here
  • Revenue forecast for the period Fiscal Year 2021 which ends June 30, 2021 increased from March’s report of a -2.5% projection to May’s report of a 5% projection which equates to roughly $502 million more than we thought we would have 2 ½ months ago.
  • The Council also reported the projections will continue to increase in the outyears beginning Fiscal Year 2022.

​5/20/2021
2021 Legislature

​Information from Legislative Reference Bureau - Public Access Room, “Which Deadlines Apply to My Bill? (2021)."

​5/20/2021
​Board of Education

​Fiscal Biennium 2021-23 Appropriations Update to the Finance and Infrastructure Committee meeting.
Materials are here.

​5/3/2021

​2021 Legislature

​Legislature provides this summary of HB200 budget appropriations totals by Department.

​4/30/2021​
​2021 Legislature

Legislature posts Budget worksheets for Budget Bill HB200 showing details of their decisions.  Worksheets are here.

  • Look at the left side columns under “HB200 CD1”

  • DOE program codes are identified as EDN100, EDN150, EDN200, EDN300, EDN400 and EDN500.

  • Executive Office on Early Learning (Preschool) program code is EDN700

  • Charter School program codes are EDN600 and EDN612.

Next step will be for the Governor to ask all departments comments on the Budget bill which will help him in any possible veto items.

The Governor has until June 21, 2021 to announce his intent to veto.  Final veto deadline for the Governor is July 6th.

​4/29/2021

​2021 Legislature

​Bill HB 613 is sent to Governor

​4/29/2021
​2021 Legislature

​Bill HB 613 (CD2) House and Senate Floor Session final vote.

Last day of the 2021 Legislative session.

​​4/28/2021
​2021 Legislature

​Bill HB1297, HB 1298, and HB 1299 is sent to Governor.

​​4/28/2021

​2021 Legislature

​Budget bill HB200 is sent to Governor.

​4/28/2021
​2021 Legislature

Budget Update report provided to DOE leadership.

​4/27/2021
​2021 Legislature
Bill HB1297, HB1298, and HB1299 all pass the House and Senate Floor Sessions.
  • HB1297 when first introduced in January addressed three items, (1) assessing fees to certain special fund accounts, (2) repealing certain special fund accounts and transferring balances to the general fund, and (3) making an appropriation to the department of health. The final version of this bill is totally different, it amends the Budget Bill HB200 by adding Collective Bargaining amounts.

  • HB1298 transfers special funds out of the Department of Education and adds a lot of reporting requirements for all remaining special funds. Does not provide additional resources tor these new reporting requirements.

  • HB1299 repeals two Department of Education special fund accounts and diverts balances to the general fund. Low impact to the department.​

​4/27/2021
​2021 Legislature

Bill HB613 Floor Sessions final vote. 

After the vote, the next step for the Legislature to send the HB613 bill to the Governor.

Watch House 9am Floor Session here

House Order of the Day is here (See top of page 38)

Watch Senate 10am Floor Session here

Senate Order of the Day (SOD) will be here when posted

​4/27/2021
​2021 Legislature

Budget Bill HB200 Floor Sessions final vote  

After the vote, the next step for the Legislature is  to send the HB200 bill to the Governor.

HB200 Budget worksheet showing the details have not been posted yet.

Watch House 9am Floor Session here

House Order of the Day is here (See item #5)

Watch Senate 10am Floor Session here

Senate Order of the Day (SOD) is here (See page 19)

​4/23/2021
​2021 Legislature

Conference draft of HB613 posted on Legislature’s website here.

  • Directs the Department on the use of ESSER federal relief funds

Both House and Senate will have the floor vote (all members) on Tuesday, April 27th.

​4/23/2021
​2021 Legislature
​Conference draft of Budget Bill HB200 posted on Legislature’s website here.
  • Operating Budget for Education are on pages 33-35
  • Provisos are on pages 55-59
  • Special Provisos are on pages 201-225
  • Capital Improvement Projects are on pages 116-145
  • Capital Improvement Project Provisos are on pages 183-225 and also in the Special Provisos Section.

Conference Committee report is here.
Budget worksheets showing details not yet posted.
Both House and Senate will have the floor vote (all members) on Tuesday, April 27th.

4/22/2021​
​2021 Legislature

​House - Senate Conference Committee passes HB546 HD2SD2.

It is unknown at this time what is in the CD1 draft of this bill until it is posted on the Legislature’s website.

​4/20/2021
​2021 Legislature

​The comparison worksheets show side-by-side line item details of the House version and Senate version of the budget (HB200).The comparison budget worksheets posted on Legislature’s website can be found below:

  1. Line items where House and Senate DISAGREE (Page 386 for DOE programs [EDN100, 150, 200, 300, 400 and 500)]).

  1. Line items where House and Senate AGREE (Page 191 for DOE programs [EDN100, 150, 200, 300, 400 and 500]).

Conference hearing was held on 4/19.

​4/19/2021
​2021 Legislature
​Budget bill, HB200 HD1 SD1. 2pm conference hearing. 
See hearing notice here.
You may watch the video here.
​4/9/2021
​​2021 Legislature

​HB546 HD2 SD2 passes Senate Ways and Means Committee. Copy of current bill is here.

Requires complex area superintendents to report directly to the superintendent of education. Makes appropriations to implement a reorganization of the Department of Education. (SD2)

​4/9/2021
​​2021 Legislature
​HB200 HD1 SD1 worksheets here (Department of Education’s budget coded as EDNs starts on page 512.)
A list of Provisos is here
​4/9/2021
​2021 Legislature
​Senate passes HB200 HD1 SD1 budget bill.
Watch Senate Floor vote here (go to 49:40).
​4/8/2021
​Department of Education
Update on Fiscal Biennium budget for 2021-23 (NOTE: This is a PRELIMINARY reaction to HB200 SD1.)

Five points:

  1. We appreciate the total level of general funds in the SD1, being relatively close to the Department's ask.  The Senate is approximately 2.1% ($38 million) below the Department's ask.
  2. We are still trying to understand the SD1, without the benefit of having access to the budget worksheets (line item details).  
  3. Based on what we can see from the Committee Report and funding total by EDN, OFS has concerns that it appears: a. the Senate was unable to fully restored the DEEP budget cuts contained in the Governor's original Request, and b. there are several new spending initiatives being proposed.  NOTE: you will recall that the $41 million of Program Review cuts were developed as options for consideration due to fiscal constraints, rather than preference.  In addition, there is also the $100.2 million of one-time FY21 cuts that were likely maintained in the SD1 at least in part for FY22 and FY23, for which we have consistently contended could not be implemented at the program level without significant disruption. 
  4. If the DEEP budget cuts are not addressed first, undertaking major new spending initiatives will be challenging to say the least.  
  5. So in short....we VERY much appreciate the Senate's efforts to ensure the level of state support meets the federally required MOE, but it appears that in some regards we may have serious concerns about the practicality and form of some of the funding "restoration." 
We are hoping there will be an opportunity for dialogue with FIN and WAM Chairs on the budget adjustments being considered in the days ahead, to ensure that to the extent possible whatever budget we end up with for FB 2021-23 can be implemented in a manner to best support student needs.

​4/7/2021
​2021 Legislature

​The Senate’s version of the Budget Bill HB200 HD1 SD1 is here.

  • Senate Committee on Ways and Means report is here
  • A list of Provisos is here.

  • Budget Worksheets showing details of the Senate’s version will be posted when it is made available.

The Senate will vote on the bill on 4/9/2021.

Then the bill moves into Conference period where the House Finance Committee and Senate Ways and Means Committee jointly produce a final version of the budget that is sent to the Governor.

​4/5/2021
​2021 Legislature

​Governor’s Message #6 received in Senate and House Chambers is here.
House Floor Video is here. (Skip to 14:36 for remarks from Finance Committee Chair Luke.)

​4/1/2021
​2021 Legislature
Senate Ways and Means Committee Decision Making Hearing Notice is here.

HB 200 HD1 - Budget Bill
  • UPDATE: WAM decisions included:
    • Supporting Hawaii’s learners - ALC, statewide trauma, K-12 programs at Libraries
    • Special Education
    • School Community Services
    • WSF
    • Instructional Support
    • School Support
    • Community youth programs
    • Charters
  • SD1 version is here (when posted on Capitol’s website)
​4/1/2021
​2021 Legislature
​Senate Ways and Means Committee Decision Making Hearing Notice is here.

HB1298 HD1 - Transfers to the general fund the excess balances of various non-general funds from various state departments and agencies.
  • Affects Use of School Facilities fund
  • Testimony is here. (DOE testimony in opposition starts on page 10.)
  • UPDATE: WAM decisions
    • Amended bill by removing S-325 Use of School Facilities Fund so that no monies will be taken from this fund.
    • SD1 version is here (when posted on Capitol’s website)
    • This bill now goes to conference between House and Senate members.
HB 1299 HD1 - Repeals various non-general funds of several departments including the department of education Implements recommendations of the auditor.  Transfers most unencumbered balances to the credit of the general fund.
  • Testimony is here. (DOE testimony offering comments starts on page 21.)
  • UPDATE: WAM decisions
    • Technical amendments
    • SD1 version is here (when posted on Capitol’s website)
    • This bill now goes to conference between House and Senate members.
​3/29/2021
​2021 Legislature

​Senate Ways and Means Committee Hearing Notice is here.
HB 200 HD1 - Budget Bill

​3/29/2021

​2021 Legislature

​Senate Ways and Means Committee Hearing Notice is here.

HB1298 HD1 - Transfers to the general fund the excess balances of various non-general funds from various state departments and agencies.

  • Affects Use of School Facilities fund

HB 1299 HD1 - Repeals various non-general funds of several departments including the Department of Education. Implements recommendations of the auditor. Transfers most unencumbered balances to the credit of the general fund.

​3/24/2021
​2021 Legislature
​House Floor Session on Budget Bill HB 200 HD1
  • House Finance Budget Worksheets for DOE are here.
  • House Floor hearing on HB 200 HD1 is here (Jump to mark 50:30-1:20:00)
  • Recap is here.
​3/17/2021
​2021 Legislature
​2pm House Finance Hearing on Budget Bill HB 200.
  • Hearing notice is here.
  • Video is here (around the 35:33 mark.)
  • Bill is here (Pages 31-33 contain totals by EDN program code.)
​3/11/2021
​President Biden
​Signed American Rescue Plan bill

Hawaii’s share is $412,328,764 and will be referred to as ARP ESSER funds.
  • Factsheet is here.
  • State allocation table is here.
  • Actual bill is here.
​3/8/2021
​Council of Revenues

​Meeting to update the January report on state tax revenues. The Legislature and Governor relies on this report to develop their budget plans and decisions.
The Council improved its January forecast for FY 21 by 4% which equates to roughly $268 M more in state tax revenues.
For FY 22, growth rate remains at 6%.
These projections include the injection of new federal relief funds from the American Rescue Plan.

  • Video is here.
  • Presentation is here.
  • Final March 2021 report will be posted here.
3/6/2021​
​US Congress

​Federal relief funding titled “American Rescue Plan” passed US Senate, now goes back to US House, then to President. For the ESSER III portion of the plan, Hawaii is projected to receive approximately $400 million, of which no less than 20% ($80 million) must be used to address student learning loss.

​3/5/2021
​2021 Legislature

​Deadline for bills to emerge from all their committees (with committee reports filed) and be submitted to the clerk of the originating chamber. This “decking” ensures a mandatory 48 hour opportunity for final review by the chamber’s members before they are asked to vote on the third reading.

For items older than March 5, 2021, click here.

Five Budget Challenges


  1. $86.3 million in existing shortfalls:

    • Teacher Differentials
    • On-going Workers Compensation shortage
    • Food Service shortage
    • Converged Infrastructure (for technology backbone)
    • Recurring annual cost of the new cloud-based Financial Management System
    • Unemployment Insurance

  1. A one-time $100.2 million in general fund reduction assessed to the Department for FY 2021 and now being determined as a recurring reduction that will continue beyond FY 2021 which has not been included in the 10% cuts that schools have created their Financial Plans for SY 2022.
  2. $164.3 million for programs under the DOE which does not include preschool which falls under the Executive Office on Early Learning.
  3. $128.5 million estimated labor savings pending negotiation with labor partners.
  4. $88.2 million for:

    • PPE
    • Devices
    • Connectivity,
    • Facilities design and layout to allow for social distancing space configuration requirements
    • Tutoring
    • Summer program


Contact Information

Budget Branch

Phone: 808-784-6020

Email: doeinfo@k12.hi.us

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