Funded: State Policy Analysis

A Detailed Look at Each State's Funding Policies

Below, see summaries of the state’s education funding policy in each issue area. Click the Expand icon next to any summary to see more detail, if available, about that state’s policy regarding that issue area. Click the Citation icon
next to any summary to see the sources of the information regarding that issue area.
Hawaii
Funding Basics
Formula Type

Hawaii has a primarily student-based funding formula. It assigns a cost to the the education of an average student, called a base amount. It then accounts for the additional cost of educating specific categories of students both through program-specific allocations and by applying multipliers to the base amount to generate supplemental funding for certain students.

The categories of students generating supplemental funding in Hawaii are students in certain grade levels; low-income students; English language learners; and students living on neighbor islands. Services for students with disabilities, students identified as gifted, and students enrolled in career and technical education programs are funded through program-specific allocations.

References:
Hawaii State Department of Education. FY16 WSF Alloc Calc for FP - Final. Honolulu, HI: Hawaii State Department of Education, October 31, 2014.
Office of Fiscal Services. Hawaii State Department of Education. Department of Education Operating
Budget Request Fiscal Biennium 2015-2017. Honolulu, HI: Hawaii State Department of Education, January 2015.
“Weighted Student Funding Formula.” Hawaii State Department of Education. Accessed June 1, 2016.
Base Amount

Hawaii has a fixed base funding amount per student. For FY2016, the base amount was $3,825.47.

This means that an average student with no special needs or disadvantages would be funded at that level.

Hawaii has an Executive Biennium Budget that allocates education funding annually to the Department of Education. Hawaii operates as a single, statewide school district. Therefore, the state’s Department of Education distributes this funding directly to each school based on its number of students.  

References:
Hawaii State Department of Education. Committee on Weights Finance and Infrastructure Report. Honolulu, HI: Hawaii State Department of Education, August 18, 2015.
Expected Local Share

Hawaii is one, statewide school district; education revenue is collected by the state and distributed directly to schools.

Student Characteristics
Grade Level

Hawaii provides different amounts of funding for students in different grade levels. It does so both by applying multipliers to the base per-pupil amount for students in two different grade spans and by providing different amounts of whole-school funding for schools serving different grade levels.

The base amount is multiplied by 1.15 for students in grades K-2, and by 1.039 for students in grades 6-8. (The multipliers have been expressed this way for consistency with other states. The funding is actually provided in an amount equal to .15 or .039 times the per-pupil base amount, distributed in addition to the student’s own base amount funding. The multipliers used are fixed annually by the state’s Committee on Weights.) The additional funding for grades K-2 is intended for class size reduction through the hiring of more teachers. Students in grades 3-5 and 9-12 are funded at the base amount; these grade spans do not generate supplemental funding.

The state’s per-school allocations depend on the grade levels served. In FY2016. Hawaii’s school funding was $259,524 for elementary schools and $339,524 for multi-track elementary schools; $406,524 for middle schools and $486,524 for multi-track middle schools; 413,524 for high schools; $525,024 for K-12 schools; $462,524 for K-8 schools; and $469,524 for 6-12 schools.

References:
Hawai’I Educational Policy Center. Implementing the Reinventing Education Act of 2004. Honolulu, HI: Hawai’I Educational Policy Center, September 2004.
Hawaii State Department of Education. FY16 WSF Alloc Calc for FP - Final. Honolulu, HI: Hawaii State Department of Education, October 31, 2014.
English Language Learner

Hawaii provides increased funding for English language learners. It does so by applying a multiplier to the base per-pupil amount for these students.

The amount of funding provided for each student depends on the student’s level of English proficiency. For students who are classified as “Fully English Proficient,” the state applies a multiplier of 1.061 to the base amount; for students with “Limited English Proficiency”, the multiplier applied is 1.183; and for students classified as “Non-English Proficient,” the multiplier applied is 1.366.

The multipliers have been expressed this way for consistency with other states. The funding is actually provided in an amount equal to .061, .183, or .336 times the per-pupil base amount, distributed in addition to the student’s own base amount funding. The multipliers used are fixed annually by the state’s Committee on Weights.

References:
Hawaii State Department of Education. FY16 WSF Alloc Calc for FP - Final. Honolulu, HI: Hawaii State Department of Education, October 31, 2014.
Student Poverty

Hawaii provides increased funding for students from low-income households. It does so by applying a multiplier of 1.1 to the base per-pupil amount for these students.

Students are eligible for this supplemental funding if they qualify for free or reduced-price lunch under the National School Lunch Program.

The multiplier has been expressed this way for consistency with other states. The funding is actually provided in an amount equal to .1 times the per-pupil base amount, distributed in addition to the student’s own base amount funding. The multiplier used is fixed annually by the state’s Committee on Weights.

References:
Hallett, Brian. Budget Director. Hawaii State Department of Education. Personal communication to EdBuild. November 10, 2015.
Hawaii State Department of Education. FY16 WSF Alloc Calc for FP - Final. Honolulu, HI: Hawaii State Department of Education, October 31, 2014.
Special Education

Hawaii funds special education using a resource-based system, determining the cost of delivering special education services based on the cost of the resources, staff positions in particular, required to do so.

The bulk of state funding for special education is based on set student-to-staff ratios calculated based on the number of identified students.

The remainder of state special education funding is distributed through specific program-based allocations, including funding for the Hawaii Schools for the Deaf and Blind; services to special-needs students during school breaks and in extended-year programs; student evaluations; certain intervention and other services; administrative costs; and the training and licensing of special education teachers.

References:
“About the Hawaii DOE.” Hawaii State Department of Education. Accessed June 1, 2016.
Office of Fiscal Services. Hawaii State Department of Education. Department of Education Operating Budget Request Fiscal Biennium 2015-2017. Honolulu, HI: Hawaii State Department of Education, January 2015.
Gifted

Hawaii provides additional revenue to schools for gifted students. It does so by applying a multiplier of 1.265 to the base per-pupil amount for a set proportion of students assumed to be gifted and talented.

Hawaii assumes that gifted students make up 3% of the overall population in schools. Hawaii applies this multiplier to the base amount for that proportion of students in order to provide for gifted and talented education.

The multiplier has been expressed this way for consistency with other states. The funding is actually provided in an amount equal to .265 times the per-pupil base amount, distributed in addition to the student’s own base amount funding. The multiplier used is fixed annually by the state’s Committee on Weights.

References:
Hawaii State Department of Education. Committee on Weights Finance and Infrastructure Report. Honolulu, HI: Hawaii State Department of Education, August 18, 2015.
Career and Technical Education

Hawaii provides specific funding for career and technical education (CTE) programs. It does so through a program-based allocation for which the state appropriated approximately $5.5 million in FY2015.

These funds are intended for CTE teachers, substitute teachers, staff development, classroom supplies, and classroom equipment.

References:
Office of Fiscal Services. Hawaii State Department of Education. Department of Education Operating Budget Request Fiscal Biennium 2015-2017. Honolulu, HI: Hawaii State Department of Education, January 2015.
Community Characteristics
District Poverty

Hawaii operates as a single school district and therefore cannot provide increased funding based on the concentration of students from low-income households in a district. The state does provide increased funding for individual students from low-income households. See “Student Poverty” for a description of this allocation.

Sparsity and/or Small Size

Hawaii provides increased funding for neighbor islands. It does so by applying a multiplier of 1.004 to the base per-pupil amount for students living on neighbor islands.

Neighbor islands are all Hawaii islands except Oahu.

The multiplier has been expressed this way for consistency with other states. The funding is actually provided in an amount equal to .004 times the per-pupil base amount, distributed in addition to the student’s own base amount funding. The multiplier used is fixed annually by the state’s Committee on Weights.

References:
Hawaii State Department of Education. FY16 WSF Alloc Calc for FP - Final. Honolulu, HI: Hawaii State Department of Education, October 31, 2014.