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To: DOE Facilities DAVID Y. IGE DR. CHRISTINA M. KISHIMOTO GOVERNOR SUPERINTENDENT STATE OF HAWAI`I DEPARTMENT OF EDUCATION P.O. BOX 2360 HONOLULU, HAWAI`I 96804 OFFICE OF THE SUPERINTENDENT October 3, 2019 TO: The Honorable Kenneth Uemura Chairperson, Finance and Infrastructure Committee FROM: Dr. Christina M. Kishimoto Superintendent SUBJECT: Committee Action on recommendation concerning the Department of Education's Supplemental Capital Improvement Projects Budget for Fiscal Year 2020-2021 Executive Summary The Hawaii State Department of Education (HIDOE) is requesting all of the Capital Improvement Program (CIP) budget appropriations in Fiscal Year (FY) 2020-2021 of the biennium budget be retained and seeks an additional $257,250,000 in FY 2020-2021 funding (Attachment A) to address: 1. Additional student capacity in the Honolulu and Kapolei complexes; 2. Enhancement to instructional facilities as well as athletic and administrative spaces; 3. Title IX athletics gender equity and the Americans with Disabilities Act (ADA) compliance; 4. Redevelopment of Mokapu Elementary School; and 5. Redevelopment of Shafter Elementary School. Specifically, the additional funding is targeted for: FY2021 Program/Project Supplemental Request LUMP SUM - CAPACITY 54,000,000 LUMP SUM - INSTRUCTIONAL 99,800,000 LUMP SUM - SUPPORT 30,000,000 LUMP SUM - COMPLIANCE 45,950,000 Mokapu Elementary School – Campus Improvements (State Match) 4,300,000 Mokapu Elementary School – Campus Improvements (Federal Match) 17,200,000 Shafter Elementary School – Campus Improvements (State Match) 1,200,000 Shafter Elementary School – Campus Improvements (Federal Match) 4,800,000 TOTAL FY2021 Supplemental CIP Budget Request $ 257,250,000 AN AFFIRMATIVE ACTION AND EQUAL OPPORTUNITY EMPLOYER The Honorable Kenneth Uemura October 3, 2019 Page 2 This request would increase the HIDOE total for the FY2021 CIP budget to $466,650,000. I. History of subject matter The State of Hawaii Executive Branch budgets on a biennial basis. The biennial budget is submitted to the Legislature in odd numbered years and the supplemental budget, including amendments and new requests, is submitted in even numbered years. The Board of Education (BOE) approves HIDOE’s budgetary request annually in October. The budget is then considered by the Governor for incorporation in the formal Executive Supplemental Budget Request submission to the Hawaii State Legislature. HIDOE’s budget is comprised of: an Operating budget to cover the expense of running schools; and CIP budget to cover the expense of maintaining, developing, and upgrading school facilities and campuses. On September 19, 2018, the Budget & Finance Office (B&F) issued Finance Memorandum (FM) No. 18-16 Fiscal Biennium 2019-21 Executive Budget Request and the Program and Financial Plan for the Period 2019-25: https://budget.hawaii.gov/wp-content/uploads/2018/09/FM-18-16-FB-19-21-Budget-Prep- Instructions.pdf (Please Use Chrome Browser) FM No. 18-16 shared observations on the State’s economy, the Administration’s approach to the biennium budget, and general policies and guidelines. On October 18, 2018, the BOE approved HIDOE’s CIP budget for 2019-2021 Fiscal Biennium (July 1, 2019 to June 30, 2021). HIDOE’s budget was reviewed by B&F and approved by the Governor on November 27, 2018, for referral to the Hawaii State Legislature. The 2019 Legislature transmitted HB2, CD1 for Governor's approval in the spring of 2019 and it was enacted on June 7, 2019 as Act 040/Session Laws of Hawaii (SLH) 2019. View a summary of HIDOE’s Budget per Act 040/SLH 2019: http://boe.hawaii.gov/Meetings/Notices/Meeting%20Material%20Library/FIC_10182018_Co mmittee%20Action%20on%20DOE%27s%20Proposed%20CIP%20Budget%20for%20201 9-2021%20Fiscal%20Biennium.pdf On September 4, 2019, B&F issued FM No. 19-11 “FY21 Supplemental Budget Policies and Guidelines (Fiscal Biennium 2019-21): https://budget.hawaii.gov/wp-content/uploads/2019/09/FM-19-11-Supplemental- Budget-Policies-and-Guidelines-FB-2019-21-1.pdf (Please Use Chrome Browser) FM No. 19-11: Observations on the State’s economy and fiscal condition: “For the forthcoming years, the COR [Council on Revenues] decreased the projected growth rates for FY 21 and FY 22 from 4.0% to 3.0% and maintained its 4.0% growth forecast for FY 23 through FY 25.” “The COR recognized the underlying strength of the current economy, citing more construction down the pike and stronger visitor statistics for July, but raised concerns regarding the end of Hawaii's expansionary cycle.” The Honorable Kenneth Uemura October 3, 2019 Page 3 FM No. 19-11: Administration’s approach to the supplemental budget: “The Administration will continue to pursue initiatives to improve the lives of our families, children, and kupuna, including those focused on: Education, which is fundamental to our children and our future. We must provide more support at the school level to ensure suitable learning environments…” “Departments are strongly encouraged to realign their budgets to best meet their current needs, including eliminating long-term vacancies where appropriate.” “In cases where realignment is not feasible, departments may consider requests that are reasonable and sustainable. Departmental budget requests should concentrate on addressing the critical program needs that would most significantly impact our State programs and the residents of our State…” FM No. 19-11 set a due date of Friday, September 27, 2019 for budget submissions to B&F for review and consideration. HIDOE has been granted an extension from the Director of Finance until Monday, October 7, 2019 to transmit its BOE-approved Supplemental operating budget request for FY 2020-2021. The Governor’s Executive Supplemental Budget is due to the Hawaii State Legislature at least 30 days prior to the start of the 2020 Legislative Session (on or about December 16, 2019). Ia. Listing of dates when the BOE or committee previously discussed the subject matter and the outcome. September 20, 2018 Finance and Infrastructure Committee: Agenda: http://boe.hawaii.gov/Meetings/Notices/Pages/September-20,-2018-Finance-and- Infrastructure-Committee-Meeting-.aspx Minutes: https://alala1.k12.hi.us/STATE/BOE/Minutes.nsf/7d59b00aff8d3cf50a2565cb00663e82/799 76b4cfaa1eae60a258324007a47b3?OpenDocument HIDOE provided an update on the development of its Fiscal Biennium 2019-2021 budget. October 18, 2018 Finance and Infrastructure Committee: Agenda: http://boe.hawaii.gov/Meetings/Notices/Pages/October-18,-2018-Finance-and- Infrastructure-Committee-Meeting.aspx Minutes: https://alala1.k12.hi.us/STATE/BOE/Minutes.nsf/7d59b00aff8d3cf50a2565cb00663e82/4f1 0e48ad04acfbe0a25834000780d25?OpenDocument The Finance and Infrastructure Committee unanimously approved HIDOE’s proposed CIP budget for the 2019-2021 fiscal biennium. October 18, 2018 General Board Meeting: Agenda: http://boe.hawaii.gov/Meetings/Notices/Pages/October-18,-2018-General- Business-Meeting.aspx Minutes: https://alala1.k12.hi.us/STATE/BOE/Minutes.nsf/ebb43af14ca5cdb30a2565cb006622a8/59 6276e6273430da0a258332007e5967?OpenDocument The BOE unanimously approved HIDOE’s proposed CIP budget for the 2019-2021 fiscal biennium. The Honorable Kenneth Uemura October 3, 2019 Page 4 January 17, 2019 Finance and Infrastructure Committee: Agenda: http://boe.hawaii.gov/Meetings/Notices/Pages/January-17,-2019-Finance-and- Infrastructure-Committee-Meeting.aspx Minutes: https://alala1.k12.hi.us/STATE/BOE/Minutes.nsf/7d59b00aff8d3cf50a2565cb00663e82/e4b 48761e28fc7920a2583a2007c110b?OpenDocument An update was provided on the Executive Branch decisions regarding HIDOE’s operating and CIP budget for fiscal biennium years 2019-2021, and HIDOE’s briefing to the Hawaii State Legislature on its budget request for fiscal biennium years 2019-2021. April 18, 2019 Finance and Infrastructure Committee: Agenda: http://boe.hawaii.gov/Meetings/Notices/Pages/April-18,-2019-Finance-and- Infrastructure-Committee-Meeting.aspx Minutes: https://alala1.k12.hi.us/STATE/BOE/Minutes.nsf/7d59b00aff8d3cf50a2565cb00663e82/1aa 04467e9faab760a2583f6007bc46b?OpenDocument HIDOE provided an update on its biennium budget request for FY’s 2017-2018 and 2018- 2019, and Legislative conference committee decisions. May 16, 2019 Finance and Infrastructure Committee: Agenda: http://boe.hawaii.gov/Meetings/Notices/Pages/May-16,-2019-Finance-and- Infrastructure-Committee-Meeting.aspx Minutes: https://alala1.k12.hi.us/STATE/BOE/Minutes.nsf/7d59b00aff8d3cf50a2565cb00663e82/1e8 070af9ac5808d0a2584240082e8c7?OpenDocument HIDOE updated the BOE on Legislative Conference Decisions on HIDOE's Biennium CIP Budget Request for FY’s 2019-2021. September 19, 2019 General Board Meeting: Agenda: http://boe.hawaii.gov/Meetings/Notices/Pages/September-19%2c-2019-General- Business-Meeting.aspx HIDOE updated the BOE on CIP fiscal reports as of June 30, 2019. Additional information about HIDOE’s budget and related information can be found at: http://www.hawaiipublicschools.org/ConnectWithUs/Organization/Budget/Pages/home.aspx II. Purpose of Report Action required by the BOE to approve HIDOE’s proposal to make adjustments in the CIP budget: o Board Policy No. 303-1 Department of Education Budgets http://boe.hawaii.gov/policies/Board%20Policies/Department%20of%20Education% 20Budgets.pdf o Hawaii Revised Statutes 37-68, Responsibilities of agencies https://www.capitol.hawaii.gov/hrscurrent/Vol01_Ch0001- 0042F/HRS0037/HRS_0037-0068.htm The Honorable Kenneth Uemura October 3, 2019 Page 5 III. Discuss any financial impact Without
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