Queen Liliuokalani Building
1390 Miller Street, Room 404
Honolulu, Hawaii 96813
Tuesday, August 2, 2016
1:30 p.m.

Lance Mizumoto, Chairperson
Brian De Lima, Esq., Vice Chairperson
Patricia Bergin
Grant Chun, Esq.
Hubert Minn
Kenneth Uemura
Bruce Voss, Esq.
Colonel Peter Santa Ana (military representative)

Margaret Cox
Jim Williams
Andrea Lyn Mateo (student representative)

Kathryn Matayoshi, Superintendent
Stephen Schatz, Deputy Superintendent
John Brummel, Complex Area Superintendent, Leilehua-Mililani-Waialua Complex Area
Jason Nakamoto, Principal, Leilehua High School
Alison Kunishige, Board Executive Director
Kenyon Tam, Board Analyst
Summer Jenkins

I. Call to Order

The Board of Education (“Board”) General Business Meeting was called to order by Board Chairperson Lance Mizumoto at 1:30 p.m.

II. Public Testimony on Board Agenda Items

Chairperson Mizumoto called for public testimony. The following people provided oral testimony.

Agenda Item
Corey Rosenlee and Amy Perruso Hawaii State Teachers Association IV. A. Student Achievement Committee Report on (2) Presentation on Hawaii School accountability system Comment

Written testimony was received and provided to the Board. The following is a listing of people that submitted written testimony before the testimony deadline.

Agenda Item
Corey RosenleeHawaii State Teachers Association IV. A. Student Achievement Committee Report on (2) Presentation on Hawaii School accountability system Comment
Marion Kanani KapuniaiKanu o ka Aina New Century Public Charter School V. A. Update on status of draft administrative rules for multiple charter school authorizers and Committee Action on timeline for adoption Support

Corey Rosenlee, President, Hawaii State Teachers Association (“HSTA”), shared that he had given testimony on the school accountability system at the Student Achievement Committee meeting held earlier. Rosenlee provided materials to the Board with an overview and recommendations for improvement. The materials included best model practices in the nation to decrease the achievement gap. Rosenlee stated that the State currently utilizes the Smarter Balanced Assessment, but the test is not an accurate measure of students’ abilities. Rosenlee stated that teachers voted against the assessment and preferred the ACT because it could be taken in one day and the scores could be used for college placement.

Amy Perruso, Treasurer, HSTA, testified that the achievement gap is obvious but has not been addressed. Perruso directed the Board to a matrix in the provided materials showing the National Education Association’s vision, including areas where indicators should be analyzed. Perruso stated that the matrix is rich with indicators. Perruso stated that there should be less focus on outputs and more research on inputs to determine areas lacking resources.

Rosenlee stated that HSTA is willing to speak with teachers and share their recommendations with the Board. Rosenlee stated that failing schools are correlated with economic status. Rosenlee suggested community-based schools to provide wraparound services and help struggling communities beyond academics to improve the achievement gap.

III. Approval of Meeting Minutes of July 19, 2016

ACTION: Motion to approve the General Business Meeting minutes of July 19, 2016 (De Lima/Chun). The motion carried unanimously with all members present voting aye.

IV. Reports of Board Committees, Board Members, and Superintendent
Student Achievement Committee Chairperson Jim Williams reported that a productive meeting took place with presentations on the CAST and school accountability system known as Strive HI. Committee Chairperson Williams stated that the Committee covered the administrative rules timeline for multiple charter school authorizers and approved recommendations for the Board’s consideration.

Audit Committee Chairperson Mizumoto reported that the Committee received an update on the Department of Education’s (“Department”) Internal Audit Plan and took action on it. Committee Chairperson Mizumoto explained that, although the topic was discussed longer than anticipated, the Committee shared constructive suggestions and the Department explained extensions. The Committee recommended showing milestones embedded in findings and better framing of reports.

Kathryn Matayoshi, Superintendent, provided information on the Educational Leadership Institute (“ELI”). There were 900 attendees with three conference breakout sessions. Matayoshi provided the budget information in the ELI program packet and provided a separate handout that explained and compared the school budget process and cycle.

Matayoshi covered the budget information in detail. Matayoshi explained that budget restrictions do not affect the Weighted Student Formula (“WSF”) but do affect Department programs. From August to October, the draft biennium budget for the following year is created, and the Department receives the official enrollment count for the current year. Schools are then informed of the WSF funds they will receive. The draft budget for the following year is presented to the Board in October for approval, and the Department can appeal for any changes made by the Department of Budget and Finance in November. Concurrently, schools will be submitting financial plans for the following year based on the budget submitted to the Governor. February is the month for the teacher posting and transfer period. Matayoshi stated that because the nature of the biennium budget and school budget cycles are different, they can be difficult to manage. The cycles are on different calendars, but the Department tries to make the situation as easy as possible for schools.

Matayoshi reviewed the education update and stated that schools are gearing up for the following school year. Matayoshi stated that the upcoming Conservation Congress will have an impact on schools in the area due to high level security.

Board Member Kenneth Uemura stated that the two different cycles is not a new situation and asked if there is anything the Board should be aware of based on the mismatched cycles. Matayoshi stated that when the economy is down, there is a hard impact on state offices. The Department has seen a significant reduction in funding over the past eight years, but the WSF funding has increased over that time. Matayoshi noted that 57% of Hawaii’s schools are high needs and need additional supports. Although WSF has increased, schools still need more funding to address the needs of high needs students. Board Member Uemura stated that if the budgets are on two separate cycles, there should be some lag and asked where gaps most often occurred. Matayoshi stated that the law allows a 5% carryover in funding from year to year, which helps to address the WSF in transition from year to year. The Department is also allowed the flexibility to shift funding between program IDs for internal adjustments. The biennium budget is helpful because some expenses are budgeted for both years and do not require an annual budget request. Board Member Uemura asked if school budgets come from the WSF and stated that if they do, there should not be many fluctuations in numbers with enrollment knowledge. Matayoshi confirmed that school budgets are funded by WSF and noted that many schools experience recurring fluctuations due to various factors such as homeless or military populations. Matayoshi stated that the WSF is stable across the state for the most part, and the Committee on Weights had supported reserving a contingency to utilize if schools accept an abundance of new students or some other unforeseen circumstance.

Board Member Williams stated the budget information provided in the ELI materials is impressive and suggested Matayoshi send it to Legislators and other stakeholders.

Chairperson Mizumoto asked if, with a historical pattern of restrictions, there are assumptions to address them in the budget. Matayoshi stated that the Department did not build anticipated restrictions into the budget but had cut positions and made adjustments in the expenditure plan to save funding. Chairperson Mizumoto suggested a more surgical approach to restrictions for the next budget and commended the Department on progress regarding the facilities backlog. Chairperson Mizumoto added that with a 37% increase in revenues and 12% increase in amount funded, the achievement gap would continue to grow. Matayoshi stated that the Department and schools could use more money. Although the limited resource had helped for a sharper focus, the funding is becoming too tight to address needs. The Department has suffered in many areas but does not want to take money from the schools.

Vice Chairperson Brian De Lima stated that when he first became a Board member, he was shocked to hear that the states offices had a 20% reduction. Hawaii spent the least amount of money on state offices in the nation. Vice Chairperson De Lima stated that resources are insufficient. Vice Chairperson De Lima stated that the Department needs to solicit from schools what is really needed to address student achievement within the community and articulate a specific strategy to improve the achievement gap. The Legislature needs to be convinced that spending more money in schools will impact student achievement.

Board Member Bruce Voss agreed and stated that the Board needs more specifics on the Strategic Plan. Board Member Voss asked when in the budget process the Board should be setting priorities for the Department. Matayoshi stated that the Department will come to the Board with a draft for approval. Before then, the Department will pull together requests and try to determine what will be restricted. For the past three years, the Department had tried to use the Strategic Plan to push forward, correlating funding with specific topics. Board Member Voss asked at what stage across-the-board cuts can be avoided. Matayoshi explained that there is the ability for adjustments in July, but the Department can anticipate cuts earlier. Matayoshi stated that last year there was a 5% hard restriction and 5% soft restriction. Some of the 5% soft restriction that was restored could be carried over to the following year.

Board Member Hubert Minn stated that the Legislature needs to look at the public education funding issue and how to address struggling students. Matayoshi stated that, looking at program ID EDN 150, 23% of the budget is dedicated to special education students. The question is how to deploy the funds for resources. A large issue is acquiring trained educators for special education. Matayoshi stated that special education teachers need additional supports for induction and mentoring for retention.

Chairperson Mizumoto stated that federal, special, and trust funds are 19% of the budget and requested to see specifics for allocation state funds. Matayoshi offered to provide a separate report for the requested information and explained that each program has a separate allocation methodology. Matayoshi added that federal funds are shared with charter schools, and the amount of trust funds allocated is very small. Amy Kunz, Senior Assistant Superintendent and Chief Financial Officer, Office of Fiscal Services, stated that federal funding is on a different fiscal year, and the federal funding budget is a ceiling amount, not what is actually received. Chairperson Mizumoto stated that, at 19% of the budget, it would be interesting to see trends in the specific funding allocations.

V. Discussion Items
Stephen Schatz, Deputy Superintendent, introduced John Brummel, Leilehua-Mililani-Waialua Complex Area Superintendent, and Jason Nakamoto, Leilehua High School Principal. Schatz stated that Brummel had been Principal at Mililani High School for many years before becoming Complex Area Superintendent and has a special skill of recruiting talented team members.

Brummel described two new educational pathways for Leilehua students. The engineering and cyber security pathways started in the 2016-2017 school year with help from Legislators and the community. Students able to complete the engineering pathway with an A/B average would be offered automatic entry into the University of Hawaii’s engineering program. Internships with the National Security Agency would be offered to about 13 students in the cyber security pathway as well.

Renee Mulbury, Aloha Transition Center staff, spoke about the Leilehua High School’s transition center. Mulbury stated that Leilehua High welcomes 250 new students each year, 35% of which are interisland local movers. The Aloha Transition Center offers unique services to transitioning students and increases their abilities to process the changes. Mulbury stated that the center provides a comprehensive orientation to prepare students for the classroom.

Jessie Okiyama, Leilehua High alumni and college sophomore, shared her experience with Leilehua High’s transition center as a high school sophomore. Student Aloha Ambassadors toured Okiyama around campus and mapped out each class on her schedule. Okiyama stated that being toured by students allowed her to feel more comfortable to ask questions.

Military Representative Colonel Peter Santa Ana stated that the transition centers are important for transitioning military students and allow local students the opportunity to engage in leadership.

Board Member Minn stated that military students bring a wealth of knowledge and experience to the school system, and the transition centers promote the Leilehua High School motto. Board Member Minn hoped that more schools will adopt the idea of transition centers, especially middle schools.

Board Member Williams suggested thinking beyond incoming students and providing outgoing students with transitional services as well. Board Member Williams stated that there may be an opportunity to provide an anchor of support for students’ next steps beyond Hawaii. Mulbury explained that Leilehua High has a school liaison office where students can connect with counselors as they transition out.

Brummel presented other bright spots and stated that the construction on the Daniel K. Inouye Elementary School will be finished by October 2016 and Principal Jan Iwase was nominated for the Excellence in School Leadership award. Brummel stated that Helemano Elementary is a model school for the Response to Intervention program to close the achievement gap. The school had over 16 school visits to teach other areas about the program. Principal Ernest Muh was Central District Principal of the Year. A Department of Defense Education Activity grant for $1.4 million was requested to expand science, technology, engineering, and mathematics knowledge and experiences in preparation for the 21st century workforce. Initiatives will raise math and science achievement through quality instruction, learning institutes, and AP test preparation. Additionally, professional development was provided for leaders within the complex area. A calendar was provided to show all of the summer professional development activities.

VI. Public Testimony on Board Agenda Items

There was no public testimony at this time.

VII. Action Items
Audit Committee Chairperson Mizumoto presented the Committee’s recommendation: Motion to approve the Department of Education’s Updated Risk Assessment and Internal Audit Plan as attached to the memorandum dated August 2, 2016 (Audit Committee/no second required).

Board Member Uemura recommended deferring action to further examine the determination of high risk audit areas.

ACTION: Motion to defer action on the motion to approve the Department of Education’s Updated Risk Assessment and Internal Audit Plan (Uemura/De Lima). The motion carried with members Bergin, De Lima, Minn, Uemura, and Voss voting aye, and members Chun and Williams voting nay.

Student Achievement Committee Chairperson Williams presented the motion to adopt the administrative rules timeline and development of a multiple charter school authorizer system.

ACTION: Motion to adopt the general timeline, as attached as Exhibit A of Board Member Williams’ memorandum dated August 2, 2016, as guidance for the promulgation of the administrative rules for multiple charter school authorizers and the development of the multiple charter school authorizer system; provided that the Student Achievement Committee Chairperson may make adjustments to the timeline as necessary and provide notification as appropriate (Student Achievement Committee/no second required). The motion carried unanimously with all members present voting aye.

VIII. Executive Session

ACTION: Motion to move into executive session to consult with Board’s attorney on the matters described on the agenda and deliberate on matters concerning the authority of persons designated by the Board to conduct labor negotiations (De Lima/Chun). The motion carried unanimously with all members present voting aye.

The meeting recessed at 3:00 p.m. and reconvened at 4:05 p.m.

IX. Adjournment

Board Chairperson Mizumoto adjourned the meeting at 4:06 p.m.