May

17

Hawaii State Senate Accomplishes Priorities in 2012 Legislative Session

Articles

By Senator Brickwood Galuteria, Senate Majority Leader

The Hawaii State Senate accomplished many of its priorities set forth at the beginning of the 2012 Legislative Session. The overarching themes and priorities of the Senate were in alignment with Governor Abercrombie’s “A New Day in Hawaii.”

Although Hawaii is experiencing a steady economic recovery, many people are still unemployed, especially in the construction and trade industries. Realizing this reality, the Senate made job creation and creating a sustainable economy top priorities through its flagship initiative, The Invest in Hawaii Act of 2012. To accomplish this goal, the Senate was able to include in excess of $414M for repair and maintenance projects in the Capital Improvement Program portion of the Budget for fiscal year 2013, pursuant to House Bill 2012.

The projects will focus on smaller repairs and maintenance to extend the useful life of existing state-owned assets and facilities; energy conservation and sustainable improvements; and health, safety and code requirements. State departments and everyone statewide will benefit from this funding. All trades in the construction industry will prosper with the creation of more than 4-thousand shovel-ready jobs, as well as businesses that provide goods and services to the industry.

To further support tourism, strategic investment was made through the development and implementation of new initiatives to significantly increase visitors. China in particular is a rising market for Hawaii’s tourism industry, with unprecedented growth potential. Looking ahead into the future, the Senate supports an emerging market, such as Space Tourism. It has the potential of being a billion dollar global industry that could significantly increase state revenues, provide new aerospace jobs, and rejuvenate economic development in the Kalaeloa area.

The steady economic recovery allowed for the reinforcement of the safety net. The Senate Majority is mindful of the struggles Hawaii’s most vulnerable citizens suffer and supports efforts to assist them. Child welfare, domestic violence shelters, MedQuest, and various shortfalls across the Department of Human Services were addressed in the State Budget. Non-profit organizations were also provided assistance for the continuation of services and community programs statewide.

The Senate has notably underscored education as a top priority. Through the State Budget, key investments were made in the weighted student formula, student meals, Community Schools for Adults and student transportation. The Senate believes early life experiences lay the groundwork for a child’s lifelong learning. Affordable and accessible high quality programs for all children are critically important for their success. Working in concert with the Governor’s Early Childhood Education Initiative, the Legislature passed a measure that establishes the Early Learning Council and the Early Learning Advisory Board. For higher education, funding was appropriated for much-needed capital renewal and deferred maintenance for the University of Hawaii system. Funding was also appropriated to address significant growth in student enrollment at the community colleges.

The Senate Majority strives to make Hawaii a model for the rest of the country by continuing the Hawaii Clean Energy Initiative. Realizing that reducing electricity costs depends in part on diversifying energy sources, the Senate passed bills addressing geothermal exploration. The Legislature also passed a measure that creates a regulatory framework for an interisland electric transmission cable.

In the area of technology, the Senate calls for investing in the State’s IT infrastructure to improve government and its services to the public. The State Budget makes significant investments in software upgrades, integration in information technology, and the modernization of databases, to name a few. The Senate also supports the Governor’s broadband initiative to enhance services and ensure that every citizen has access.

With many priorities accomplished, the Senate Majority still has a lot of work ahead and looks forward to continuing to serve the people of Hawaii.

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May

11

Senate Education Chair Jill Tokuda’s Remarks in Support of Charter School Omnibus Measure

Education

On May 3, 2012, Senate Committee on Education Chair Jill Tokuda gave the following remarks in support of Senate Bill (SB) 2115, relating to Charter Schools. SB 2115 is the charter school omnibus measure, which puts in place a comprehensive governance system for Hawaii’s charter schools.

Together, SB 2115 and SB 2116 strengthen Hawaii’s Charter School system by increasing accountability in the governance of Hawaii’s Charter Schools that will foster improved student outcomes. SB 2115 establishes clear lines of authority and clarifies the relationships, responsibilities, and lines of accountability among stakeholders of Hawaii’s Charter School System. SB 2116 appropriates funds to help with the transition.

“Thank you. While I have said that this bill is the culmination of almost a years worth of work- with it literally beginning with weekly meetings since July 20, 2011- it really began quite some time ago… 1994 to be exact, eighteen years ago, when the legislature took the first steps to create Charters, then called Student Centered Schools. So it is appropriate then- as Charter Schools figuratively come of age- that we move into a new era of Charter School governance. The creation of a system that is unique to our state in that it takes what has worked in the past, merged it with national models of best practice, and through active engagement with stake-holder groups has resulted in the bill you see before us today.

Ninety-one pages long, this measure has been tightened and changed throughout the process to address concerns and to anticipate future needs. Ninety-four amendments to be exact and I would be remiss if I did not take this opportunity to specifically thank one individual. I assure you , there are many people who need to be thanked for their work on this, but had it not been for Krislen Chun, our SMA attorney who worked with us on both the task force and this bill, getting to this point would have been nearly impossible.

So what does this bill do? Centered around the philosophy that autonomy plus accountability equals increased student achievement, this complete re-codification of our charter school laws provides schools with the flexibility they need to be innovative while maintaining the requisite level of accountability as these are public school students, and tax payer dollars. Examples of our efforts to balance autonomy and accountability can be found in many places, including our removal of the cap on the number of charter schools, coupled with a tightening of our application process, ensuring that only strong applications are awarded charter status.

We’ve strengthened the role of the authorizer and provided them with the authority and capacity to hold their charters accountable, while at the same time moving forward on a recommendation to provide schools with the flexibility and resources they need in regards to purchase of services and technical support. We’ve established performance contracts, which really are a bit of both, in that it holds schools accountability for meeting the indicators and metrics identified in both their contracts and annual performance targets, while providing schools with clear expectations and the ability to include rigorous, valid, and reliable indicators to augment external evaluations on their performance. We’ve changed the form and the function of what will now be of public charter school commission and governing boards at the school level, removing the constituency based nature of the members while allowing for the appointment of individuals with the specialized skill sets and understanding of charter schools needed to support a successful and thriving charter school system. And amongst the most controversial, at times, we’ve maintained charter schools exemption from various state laws, but made it clear that schools and their governing boards shall be subject to the state ethics code.

At every point, we have been explicitly redundant, requiring rule making and reporting, defining and highlighting, and yet we know the real work lies ahead in implementing and transitioning into this new system. And I would like to also thank the chair and vice chair of the Ways and Means committee for their support in the half-a-million dollars in transitions funding needed to see this through. It will not be easy, and I know that there is much anticipation and fear, but the measure we have before us puts in place a solid system of governance that will be good for all of our communities and for the students served by our charter schools.

I humbly ask for your support and consideration of this measure.”

To view video click here.

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May

10

Senator Michelle Kidani’s Floor Remarks on House Bill 2012, the Hawaii State Supplemental Budget

Budget / Ways and Means

On May 3, 2012, Senator Michelle Kidani, who serves as vice chair of the Senate Committee on Ways and Means and oversees Capital Improvements Projects for the Senate, offered the following remarks in support of House Bill 2012, the Hawaii State Supplemental Budget:

Thank you Mr. President. I rise in support of this measure.

This past year has been one of many, many challenges, especially in crafting a Capital Improvement Program that meets the needs of the State while balancing the fiscal considerations of an improving, but still fragile economic recovery.  We know that now is the time for investment in our state’s infrastructure, while costs for materials and labor are still low, and the need for job creation has never been greater. I wish to thank Chair Ige for his leadership during this very long and tedious process and you for your guidance and letting me vent when needed. Also Mr. President, I would like to introduce and thank my staff member Will Kane without whose help we could not have completed the CIP budget.

 In HB2012 CD1, we have taken the approach of investing in existing state facilities and infrastructure, especially those for education, technological innovations and facilities that will reduce the expenditure of taxpayer funds in the form of rent or lease payments.

Therefore, the HB2012 CD1 proposes a CIP budget for FY13 in the amount of $3.2 Billion, $826 million of which is funded by General Obligation or Reimbursable Bonds. It is important to note, that due to the recent refinancing of previously issued bonds and the savings realized from this and the proceeds from a bond issuance in a healthy bond market, and prior year project lapses, there are no additional payments for debt service on $350 million of the total amount appropriated. Also of note, this budget includes over $400 million of Repair and Maintenance projects included in the Senate’s Invest in Hawaii Act of 2012 (SB 2012).

Highlights of the budget bill before us this morning include:

-         $60 million for the department of Human services for renovations to our public housing.

-         $135 million for the department of education facilities, to provide a 21st century learning environment in our aging schools.

-         Almost $50 million for the department of Health to address critical health and safety needs.     

-         This budget also provides funding for projects across nearly every campus in the UH System, including funding to build:

           – the Culinary Institute of the Pacific at Kapiolani CC,

          – University of Hawaii Athletics Facilities

          – a dedicated facility for the Academy for Creative Media Academy at UH-West O`ahu, and

          – funding to continue construction of a new community college campus at Palamanui on the Big Island’s Kona Coast.

When crafting this budget, the utilization of currently under utilized state facilities was considered. An example of this lies right across the street from this building. The Kamamalu building has sat empty for years, while we spend millions in lease payments to private companies, instead of renovating our existing facilities. Therefore, HB 2012 CD1 has appropriated the funds that would allow this building to once again be used by our state agencies, which is the most responsible way to reduce escalating rental costs.

Lastly, Mr. President, the Senate’s Capital Improvement Program budget provides appropriations for projects across nearly every department. These include funding to create a statewide financial management system, renovate additional facilities for the Department of Health, and improvements to all airports, statewide. This will begin to address the concerns and needs of our visitors, which are the lifeblood of our economy,

In closing, I would like to again thank Chair Ige and my fellow members of the Committee for their support and hard work in crafting this budget, and I believe we all look forward to the positive impact this budget will have on the State.

To view video click here.

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May

10

2012 Supplemental State Budget Breakdown by Department

Articles / Budget / Ways and Means

This year the Legislature passed an $11.2 billion supplemental budget for the State of Hawaii, House Bill 2012. Following three years of budget cuts totaling more than a billion dollars each year, this year’s budget provided the Senate with a refreshing opportunity to reinforce the safety net where needed, reinstitute core services that have been decimated over the past three years, and make strategic investments in key areas that can help us grow the economy and sustain a more prosperous future for Hawaii. The chart above illustrates each State department’s funding allocation as appropriated through House Bill 2012.

Here is the numeric breakdown:

Department Fiscal Year 2013
Accounting and General Services $     166,205,378
Agriculture $     42,101,954
Attorney General $     73,122,827
Budget and Finance $     1,847,935,987
Business, Economic Development, and Tourism $     241,367,661
Commerce and Consumer Affairs $     50,586,801
Defense $     109,083,863
Education $     1,856,429,564
Governor $     3,008,433
Hawaiian Home Lands $     184,992,104
Health $     1,501,022,002
Human Resources Development $     19,804,446
Human Services $     2,385,651,645
Labor $     490,431,649
Land and Natural Resources $     111,534,249
Lieutenant Governor $     1,020,774
Public Safety $     234,581,424
Subsidies $     873,859
Taxation $     22,764,775
Transportation $     846,569,213
University of Hawaii $     993,645,330
Grand Total  $    11,182,733,938
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May

09

Senator David Y. Ige’s Floor Remarks on the Executive Supplemental Appropriations Act of 2012

Budget / Ways and Means

On May, 3, 2012, Senate Committee on Ways and Means Chair David Y. Ige offered the following remarks in support of House Bill 2012, the Hawaii State Supplemental Budget:

Mister President, I rise to speak in favor of this measure, the executive supplemental appropriations act of 2012.

This measure is the product of the positive and collaborative efforts set forth by members of this Legislature, the executive branch of government, and numerous members of the public.

Colleagues, I thank all of you that have contributed and supported the Senate’s efforts to develop a responsible expenditure plan, especially my Vice Chair, the members of the Ways and Means Committee, and yourself, Mister President.

Additionally, I also appreciate House Finance Chair Oshiro and his tireless efforts to work with me to finalize the State budget. The Chairman has become fond of the saying in the heated crucible of negotiations, “iron sharpens iron.” Mister President, at this point, the Legislature must have two fairly sharp money Chairs at its disposal.

This session marks the first in years that we were not faced with addressing a deficit exceeding a billion dollars. Nonetheless, challenges remained. The budget submitted by the Governor was premised on general fund revenue growth projections that the Council on Revenues has since substantially reduced, and many worthy programs could not be funded at desired levels.

However, this budget does allow us to strengthen core government services that have been diminished over the years. The governor’s initial supplemental budget request included over $100 million to strengthen the safety net, support public education, and maintain essential services across the State. Colleagues, the measure before you is responsible and responsive to the Governor’s requests and initiatives.

The governor’s requested budget includes funding to significantly improve the infrastructure for information technology (IT) throughout state government, an area in which the Senate has led by example. This measure includes more than $25 million dollars that will be administered by the office of information management and technology (OIMT) for critical IT projects that will support increased efficiency in the transformation of state government.

The budget before you strengthens the safety net, and includes additional funds for child welfare, domestic violence shelters, Medicaid, and various shortfalls across the Department of Human Services. Additionally, $18.2 million provided for the temporary assistance for needy families program and another $3.6 million for information technology initiatives to modernize the Department of Human Services.

Education is a top priority of the Legislature. This measure underscores this by adding over $40 million to the Department of Education’s budget. The funds provided focus on key areas of investment in education, including more funding than requested by the Governor for the weighted student formula and student meals, and fully funding the Governor’s requested budget for the community school for adult program and student transportation.

Following significant evaluations of the Charter School system, this Legislature has a measure rewrite the charter school law. To ensure equal appropriations for the public schools as the charter schools, about $1 million dollars is provided through this measure and charter school legislation to develop and implement a transition plan and provide equal per pupil operating funding for charter school and regular education students.

Finally, one of the Governor’s key initiatives is the protection of priority watersheds. This measure recognizes the importance of protecting the State’s water resources and provides $5 million for this purpose.

The conference draft of this Supplemental Budget moves the State forward by protecting safety net services, strengthening funding for education, and making strategic investments that will advance our economy.

This budget is in line with that proposed by the Governor, and calls for an addition of just $1.4 million in general funds to the executive supplemental budget request, as adjusted for governor’s messages, for fiscal year 2013.

Colleagues, I commend each of your efforts that have helped bring us to this point and thank you for your support of this measure and the important issues it represents.

To view video click here.

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