Feb. 23—State education officials say they are preparing for a triple punch to funding Hawaii's public school system, in between new state budget cuts in light of the impending “federal fiscal cliff.” Ta.
State education officials say they are preparing for a triple punch to funding Hawaii's public school system, in between new state budget cuts in light of the impending “federal budget cliff.”
This week, all state departments were directed by the state Senate to develop two proposals for general fund cuts. One is a 10% reduction scenario and the other is a 15% reduction scenario. The proposed cuts are intended to maintain fiscal balance, as the costs of Maui's wildfire disaster are particularly high on shelters.
Hawai'i's 258 public schools and 37 public charter schools typically operate on operating budgets of about $2 billion, which equates to a “significant” reduction of $213 million to $320 million. said Brian Hallett, the state's assistant superintendent and chief financial officer. The Finance Department of the Ministry of Education made the announcement on Thursday.
“Cuts on this scale are very reminiscent of when we have to start talking about terrible issues like furloughs. We're going to pass it on,” Hallett said at the State Board of Education meeting.
But the DOE is already facing a dramatic funding shift with the signing of $639 million in COVID-19 pandemic federal aid on Sept. 30. The termination of this historic subsidy means an average loss of approximately $170 million per year in revenue.
All of this is on top of the State Board of Education's significant initial grant reduction of $198.2 million in DOE operating budget and $273 million for capital improvements for fiscal year 2024-2025. Yes, both were cut in Gov. Josh Green's budget. Proposals to the State Legislature.
As the DOE pleads for funding for student recovery and inflation caused by the pandemic, some state lawmakers are calling for the agency to do a better job of eliminating outdated programs.
State Schools Superintendent Keith Hayashi said at Thursday's BOE meeting that the state Senate directed all state officials this week to devise two scenarios for reducing the state's general fund.
A memo from state Senate Ways and Means Committee Chairman Sen. Donovan Dela Cruz (D-Mililani-Wahiawa-Whitmore Village) asks agencies to submit a list of cuts for 10% and 15% budget reduction scenarios. instructed. Thursday 4pm.
“We are very grateful for the governor's budget. We have worked very hard to advocate for additional funding,” Hayashi told the board. “This new request from the department is very concerning to me.”
Hallett said it is his understanding that these cuts are “one-time cuts. He understands that they are motivated by concerns about the balance of the state's fiscal plan, particularly the rising costs related to Maui, primarily housing-related.” “I am doing so,” he said. “So we are trying to create a list that meets the requirements.”
Hallett did not provide details on the list of potential cuts to the DOE's budget. But to put the scale of such budget cuts into perspective, Hallett said that while he and other DOE officials say it would be unrealistic to eliminate so many faculty positions, He said the amount would equate to approximately 3,000 teaching positions. DOE employs approximately 13,000 teachers.
“There's no easy option for this, and we hope we don't have to,” Hallett said. “I hope this is just a practice.”
Hallett said the State Board of Education's policy calls for asking the DOE to make budget cuts all at once, leaving decisions on individual items to the BOE. But he said the DOE would submit “a variety of options” to meet the requirements.
Several board members said the DOE is struggling with learning loss and social deprivation related to the COVID-19 pandemic among many of its 168,000 students, particularly among disadvantaged students who have been disproportionately affected. He noted that he continues to work on resolving his emotional trauma. BOE members have also expressed concerns about how budget cuts will affect progress on the board's 2023-2029 strategic plan aimed at improving learning, staffing and operations.
In a letter to Hayashi regarding departmental budget cuts, Delacruz said the proposed cuts could come from existing cash balances in the base budget, budget adjustments and special funds.
Dela Cruz also explained how emergency spending in the state's Major Disaster Fund in the wake of the Maui disaster has reduced state budget carryovers to “critical levels.”
“The expected carryover amount (for fiscal year 2024) has been reduced to $611.5 million from the original balance of $1.5 billion,” he wrote. “Due to the Governor's request for additional funding to address West Maui's ongoing shelter needs, this carryover amount is projected to be further reduced to $154.4 million at the end of fiscal year 2025. ” Our existing responsibilities and shelter commitments will only be further reduced. ”
