New labor contracts will shave $37.7 million in general fund costs for public schools, but growing enrollment and transportation costs eat up much of the savings in the proposed supplemental budget for the next fiscal year, Hawaii’s top education official said Thursday.
"Enrollment saw a significant increase, and we anticipate that enrollment will continue to increase in the coming year," schools Superintendent Kathryn Matayoshi told the Senate Ways and Means Committee at a briefing on the Department of Education’s budget.
There are 173,540 students in Hawaii’s regular public schools, up from 171,288 last school year, and the department projects the number to rise to 174,533 next year. Meanwhile, the number of students with special needs has risen to 56 percent this year, propelled largely by an increase in low-income students.
"That is a population that requires additional resources and services, and that number has been increasing," she said. It was 51 percent in the 2008 fiscal year.
The department is requesting $1.345 billion in general funds for the 2013 fiscal year, a slight increase from last year but down 6.5 percent from five years ago. The overall budget request, including federal and other funds, is $1.762 billion, up from the $1.759 billion the department got last year.
Along with labor savings, the proposed supplemental budget slices food services by $6.1 million. It seeks a boost of $13.6 million in per-pupil funds due to enrollment. And it calls for $25 million more for student transportation, the subject of a separate legislative briefing on Jan. 27.
A campaign to cut energy use on campuses and pursue solar power has helped push down electricity consumption substantially, but the savings have been overshadowed by higher rates. Electricity consumption fell to 135 million kilowatt-hours in the 2011 fiscal year from nearly 155 million kwh in 2007. Meanwhile, utility price increases have continued to push overall electricity costs up, to $40 million from $32.5 million.
Randy Moore, assistant superintendent, showed legislators a graph with an orange line depicting consumption and a green line depicting cost.
"Before we started this program, that orange line went up 2 percent per year, more facilities and more use, more copiers, more computers. Then we initiated that ‘share the savings’ program, and consumption has gone down."
Power purchase agreements for solar power have been put in place at four Oahu high schools, and contracts have been awarded for solar power for all Kauai schools. Moore said the state plans to expand photovoltaic projects statewide.
Sen. Michelle Kidani commended the department for pursuing alternative energy.
"I do think this is a really good model for the entire state agencies to take a look at," Kidani said. "We’re not paying any of the upfront cost. We’re working with the vendors who provide photovoltaic panels, and we are then buying the power from them. … This is not just good for our budget, our pockets, but it’s good for the environment."
The executive budget also seeks $50 million in additional funds for capital improvement projects, above the $171 million already allotted for fiscal year 2013.
