Senate education committee backs HB 329, HD2 with amendments and $180 million in targeted appropriations

The Senate Committee on Education recommended passage with amendments Tuesday of House Bill 329, House Draft 2 (HB 329, HD2), a measure that expands the School Facilities Authority's (SFA) role in early-learning projects and workforce housing and adds three targeted appropriations totaling $180 million for fiscal 2026.

The committee's action, taken in Hearing Room 229 on March 19, 2025, directs that SFA not be responsible for Department of Education (DOE) facilities maintenance and repairs; preserves recruitment for SFA positions with the Department of Human Resources Development (DHRD); and authorizes SFA to build workforce housing on school property and other property. The committee also inserted three appropriations: $100 million for a new middle school in Central Maui, $30 million for a new elementary school in Lahaina, and $50 million for teacher housing in Mililani.

Why it matters: HB 329, HD2 would broaden SFA's explicit project authority to include prekindergarten, preschool, childcare and early learning programs, workforce housing and other public school development planning and construction assigned by the legislature, governor or board of education. The bill's scope and the newly added appropriations affect facility planning and capital spending on Maui and O'ahu and shift certain administrative responsibilities between state agencies.

DOE concerns: Sean Bacon, assistant superintendent for the Department of Education, told the committee the department "stands on its written testimony" and expressed concern about splitting recruitment responsibilities between two agencies. "We would be recommending that it'd be one or the other," Bacon said, noting that DHRD (referred to in testimony during the hearing) currently handles some SFA recruitment and that duplicative responsibility could cause confusion.

Staffing and operations: Testimony from SFA representative Ricky Fujitani said the authority supports the bill's intent but seeks clearer roles and responsibilities. Fujitani told the committee SFA has been unable to fill several civil-service positions since the authority began operations more than two years ago and that the agency has filled exempt positions through the DOE's Office of Talent Management but has relied on DHRD for civil-service recruitment.

Legal and jurisdictional questions: A Department of the Attorney General representative (identified in the hearing as Harichi) recommended clarifying amendments, saying that "childcare and early learning programs are not on public school campuses, and the DOE doesn't have jurisdiction or or administrative authority over those programs." The attorney general's testimony flagged uncertainty in the bill about whether SFA would be responsible for repair and maintenance of early-learning facilities located on DOE or charter school campuses and suggested language to clarify whether SFA's responsibility would include repair and maintenance or instead be limited to construction and planning.

Local government input: Jordana Ferrer, representing the City and County of Honolulu Department of Community Services, said the county supports the bill's intent and offered small amendments to facilitate partnerships allowing early-learning opportunities on some city property.

Committee amendments and vote: The committee's recommended amendments explicitly remove maintenance and repair responsibility for DOE facilities from SFA; allow SFA to build workforce housing on school facilities and other property; require retention of staffing recruitment with DHRD for SFA positions; and insert the three appropriations noted above ($100 million for a Central Maui middle school, $30 million for a Lahaina elementary school, $50 million for teacher housing in Mililani). The committee recorded five ayes: Chair Kidani (aye), Vice Chair Mercado Kim (aye), Sen. Hashimoto (aye), Sen. Kanuha (aye), and Sen. DeCord (aye). The committee's recommendation to pass with amendments was adopted.

What was not decided or remains unclear: The bill language and testimony left open whether SFA's authority for prekindergarten, preschool and early-learning projects extends to repair and maintenance on DOE or charter campuses; the attorney general's office recommended clarifying that point. The transcript also records confusion in staffing counts for SFA (discrepancies between positions approved, filled and vacant were discussed), and the final bill language and budget language will need to specify implementation roles and eligibility for projects on non-school land.

The committee's recommendation moves HB 329, HD2 forward in the legislative process with the clarified recruitment, maintenance and appropriation provisions and returns the bill to the House with the committee's suggested amendments.