SPECTRUM OF BUDGET RESOURCES (Positions and Funds)
Depending on where you are on the budget cycle, the terms used to describe budget resources can be varied. Below are the major categories of this spectrum.
Appropriation →
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→ Allocation →
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→ Allotment →
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→ Expenditure
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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)
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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.
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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.
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Actual use of the resources for payroll and by either purchasing or encumbering goods or services. |
The Operating Budget
FUNDING SOURCES
The Fiscal Year 2024-25 Operating budget funding comes from four sources:
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General funds: Represents approximately 85% of our funding resources. Comes from the State of Hawaii’s general fund, primarily state tax revenues. This is the top source of funding to the Department.
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Federal funds: The second largest source of funding represents approximately 11% in expenditure ceiling resources. The Department receives grants from federal agencies including the U.S. Departments of Education, Agriculture, Defense and Health and Human Services.
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Special funds: Roughly 4% of our expenditure ceiling resource is through special funds. 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.
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Trust funds: May include donations & gifts, foundations & other grants, school athletic program activity collections, and “fair share."
DIRECT-TO-SCHOOL FUNDING
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EDN 100 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.
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EDN 150 supports
special education students who may require or have an Individualized Education Plan (IEP).
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EDN 400 pays school bills — sewer, electric, water, repair, food service and others.
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EDN 500 pays for Adult Education programs at public schools.
SUPPORT FUNDING AT SCHOOL, DISTRICT, AND STATE LEVELS
The remainder of the budget is spread among EDNs 200 and 300, which provide support at all levels. These include
instructional supports, statewide
testing, administrative support (personnel, technology and fiscal), community programs such as
A+ and
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.
AGENCIES (BY EDN) THAT OPERATE OUTSIDE OF THE DEPARTMENT OF EDUCATION
- EDN 407 Public Libraries
- EDN 450 School Facilities Authority
- EDN 600 Charter Schools
- EDN 612 Charter Schools Commission and Administration
- EDN 700 Executive Office on Early Learning (Preschools)
NON-FACILITY GENERAL FUND PER-PUPIL FUNDING REQUEST FOR CHARTER SCHOOL STUDENTS
The general fund per-pupil amounts, not including charter school facilities (CIP) shall be the same as the general fund per-pupil for the department of education schools as explained in
HRS 302D-28.
The process involves two phases, first, a budget appropriation request and then later, an allocation “true-up” to adjust for any differences.
