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Hawaii Board of Education

Public Meeting Broadcast Recordings
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HIBOE General Business Meeting Agenda
Public Testimony
Superintendent's Report
Hawaii Business Roundtable Presentation on Strategic Priorities
State Public Charter School Commission's Annual Report
Board Approval of 2017 Legislative Report on the State's public charter schools - Board Annual Report
Board Approval on School Community Council request for exceptions to collective bargaining agreements, statutory waivers, and waivers of Board policy for School Year 2016-2017 for Baldwin High School, Aiea High School, and Maui High School
Board Approval on appointment of Board Designee, Rodney Luke to the School Community Council Exception Review Committee

HIBOE Student Achievement Committee Meeting Agenda
Public Testimony (none)
Complex Area Superintendent Report: Special Education in the Farrington - Kaiser - Kalani Complex Area

HIBOE General Business Meeting Agenda
Public Testimony
Superintendent's Report
Board Approval of amendment to BOE Finance & Infrastructure Committee Charter recommending, in addition to other changes, that members "will either possess or obtain basic abilities in financial matters".
Board Approval of amended School Food Services Follow-up Review with updates to the management plan and updates on the completion of progress of completion for the action plan to be reported to through the audit committee quarterly updates.
Board appointed member Kili Namau'u as the Board's liaison to the Hawaii State Public Library System.
Board Approval to amend the superintendent evaluation general timeline for the 2017-2018 school year,

HIBOE Student Achievement Committee Agenda
Public Testimony
Complex Area Superintendent Report: Special Education in the Pearl City - Waipahu Complex Area
Presentation on annual reporting of the 2017-2020 DOE & BOE Joint Strategic Plan Indicators for Goal 1 (Student Success)
Committee Action on designation of Hawaii State Public Library System Liaison

HIBOE Audit Committee Agenda
Agenda Discussion Item(s): Presentation of the Department of Education's Internal Audit Plan -- Quarterly Update through September 30, 2017
Action Item(s): Committee Action on School Food Services Follow-up Review -- Amended
Public Testimony: none

HIBOE General Business Meeting Agenda


Discussion Items - Community Stakeholder Presentations

HIBOE Testimony [3/21/2107]: HIDOE Fiscal Transparency

John P. Sosa, EIH Executive Director

John P. Sosa, EIH Executive Director

Good Morning Chairperson Chun

My name is John Sosa, Executive Director, of the Education Institute Of Hawaii (EIH). We would like to comment on the Department's ESSA fiscal reporting requirements through the lens of fiscal transparency, clarity and ease of understanding of the DOE budget. While we welcome the Departments efforts in improving fiscal reporting in conjunction with the CCSSO we would like to point out the following:

1. The Department and we believe many on the BOE know EIH has been advocating for fiscal transparency for well over a year. The purpose is to bring clarity to the budgetary process so that all interested parties can readily understand how 100% of the funding is allocated and how it is spent. We feel this will ultimately build true trust at all levels and actually result in much better spending decisions with clarity of purpose.

2. The process being presented here is based solely on “Who Benefits”- State Office-Complex Areas-or Schools. We advocate for a system that would be much richer. To the extent that we could obtain data to analyze the system we advocate for a system that clearly states, Who Decides-Who Budgets-Who Accounts- Who Acts- and Who Benefits. A system such as this would be of much greater help to schools, and the legislature that allocates the funding.

3. While we understand decisions have been made to exclude certain parts of the income (EDN 500 Community Schools, A+, Capital outlay, Debit services, Fringe on general funded employees, Student activity funds) we feel these exclusions result in presenting an incomplete picture of the DOE budget. If 100% of dollars are included, not just operating amounts, then the DOE will have addressed the transparency and decision-making needs of all stakeholders for most questions in a responsible way. If that DOE reporting tool allowed for stakeholders to drill down into the details of reported subtotals, then real trust would evolve.

4. Additionally this report as drafted lacks clarity and ease of understanding. For example on page 5 is a graph showing that Hawaii DOE expends 24% of its resources at the central offices and 76% school based. Further down on page 9 if I read the left side of the spreadsheet correctly it reflects a 95% figure for school level expenditures. On the HIDOE website it states that 94% of the budgeted funding goes directly to schools. Which figure is correct?

5. If you take either the 95% figure or the 94% it implies a large percentage of the funding is “reaching “ the school level. Yet this Board has heard direct testimony from Principals in past meetings that they have very little discretionary monies are available to them after all fixed cost are accounted for.

6. The extensive detail provided in the FMS detail spreadsheets, while appreciated does not lend itself to true clarity or sense of understanding. The descriptions lack clarity and understanding and would befuddle most readers.

7. Fringe on General funded employees is the elephant in the room, while we understand that the State is currently responsible for the paying down this unfunded liability, we feel it is not good practice, nor is it wise to simply ignore this cost. The DOE commands the largest share of the state budget. If we at least recognized that any DOE budget expansion request that involves positions, adds to this liability, we are then truly being transparent. By its sheer size the BOE/DOE could and should be a leader in recognizing these costs as part of the budget request process.

8. What if in the future the legislature/governor decide to pass on the responsibility to this liability directly to the state Departments? The BOE would be well served to have this salaries plus fringes built into its budget process as we move forward.

9. Lastly, the model as presented is largely regulatory reporting vs. managerial decision-making. We need a system that gives us fiscal transparency that allows us to make decisions on 100% of the dollars.

10. The ESSA Blueprint for Public Education cannot move forward without resources and we need complete transparency to make wise decisions on the use of all dollars. The state is not awash in dollars, if you doubt that witness this budgetary cycle. When it started everyone was talking about a near billion-dollar surplus, now the process is cutting to meet lower tax projections.

11. If the BOE and those within the system as well as the legislature and general public have a clear understanding of 100% of the dollars allocated and spent they will be more inclined to support honest requests.

12. The DOE and BOE also need to come to the realization that future budgetary decisions can and need to be based on what we have, rather, than simply expecting more. Shifting of current expenditures could go a long way towards meeting program needs. Then as necessary new requests could be anchored in to specific school or system level needs.

Trade offs are part of any organizations budget but we t cannot make good decisions using incomplete data. With the Boards approval EIH is willing and ready to work with the Department and the Board to provide a budgetary tool that reflects how 100% of the dollars are accounted for and expended.

Thank you