The Department of Education told the House Committee on Finance that its biennial budget request is built around predictable, reliable funding while recognizing enrollment decline and continued pandemic-related recovery needs.

The department presented a flat operating request and a large capital improvement program (CIP) strategy that would appropriate funds in prioritized lump-sum “buckets” rather than a long list of line-item projects. Assistant Superintendent and Chief Financial Officer Brian Hallett briefed the committee on the department’s funding picture and tradeoffs, noting the executive request would produce a lower base appropriation in the coming biennium if collective bargaining is excluded from the display. The department reported a current FY25 general fund operating appropriation of $2,200,000,000 and said the executive request factors would result in base appropriations of about $2,080,000,000 plus proposed add-ons.

Why it matters: DOE officials said lump-sum CIP appropriations give the department flexibility to sequence and execute repairs and projects by need across hundreds of sites; lawmakers questioned how that approach would interact with constituency requests and single-site mandates. Department leaders said the proposed approach is intended to move the system back to a proactive, risk‑based facilities program after prior reactive cycles.

Key details and context
- Scale: DOE said it serves more than 152,000 students across roughly 258 public schools and employs more than 42,000 people, including about 13,000 full‑time teachers. The department manages more than 21,500,000 square feet of facilities across about 266 sites.
- Student achievement and attendance: Department testimony highlighted multi‑decade gains on the National Assessment of Educational Progress in 4th‑grade reading and mixed results in 8th‑grade math, and identified attendance as a major recovery priority. DOE noted regular attendance (defined as at least 90% of instructional days) fell from roughly 86% pre‑pandemic to about 66% after COVID, and said reengagement work is part of the budget priorities.
- Enrollment: DOE staff said statewide enrollment has declined approximately 10% over the last decade and gave a near‑term projection of a roughly 3,000‑student decrease in the next school year. Officials warned that enrollment decline is uneven across islands and communities, creating both pressure for new builds in growth areas (for example, Central Maui, parts of West Oahu) and underutilization in other districts.
- CIP and lump-sum approach: The department asked lawmakers to support a lump‑sum, bucketed CIP approach it says will allow staff to prioritize projects across 11 categories and execute the highest‑risk work first. Officials said they already are communicating changes with complex area superintendents and principals and will continue to refine a statewide prioritization list.
- Federal funding risk: CFO Hallett reviewed federal grant exposure and noted federal funds made up approximately 11% of the department’s FY25 appropriation. He flagged that House and Senate federal appropriations proposals at the time of the briefing showed different funding trajectories and that the department must continue monitoring for potential cuts.

What legislators pressed DOE on
- Single‑project requests and local control: Members asked how lump‑sum buckets would respond when legislators or communities seek funding for a distinct project. DOE said priorities will be set collaboratively with complex area superintendents, principals and legislators but emphasized that the bucket approach aims to fund the most urgent and safety‑critical work statewide.
- County vs. state property issues: Lawmakers raised cases where school activities occur on county land, citing maintenance and funding complications. DOE said it is processing land transactions that resulted from Act 307 transfers, working county by county and through the Board of Land and Natural Resources when required, and offered to follow up on specific campuses.
- Teacher counts and classroom ratios: Members asked how DOE reports roughly 13,000 full‑time teachers against total staffing to produce a student‑to‑teacher ratio figure that seems lower than classroom experience in some schools. DOE clarified that the teacher count includes classroom teachers, counselors, librarians, academic coaches, complex area staff and other certificated positions not assigned to a single classroom line; part‑time casual hires also raise headcount without translating into full classroom staffing.
- Mental‑health and middle‑school supports: The department described targeted proposals for middle‑school reengagement positions and a request to convert contract mental‑health intervention services into 20 permanent mental‑health interventionists. Assistant Superintendent Kinao L. Gardner said the positions are tied to a Chaminade partnership and would bring licensed clinicians into schools to support students’ transitions and targeted interventions.
- New and replacement schools: Committee members pressed DOE on specific new‑school projects named in its CIP request (including Central Maui, East Kapolei and Honouliuli Middle School). DOE said some projects predate the creation of the School Facilities Authority and will continue under DOE oversight, while other new builds are being coordinated with the SFA; DOE acknowledged timing and site selection remain in development for several projects.

What DOE requested (high‑level asks cited in the briefing)
- Continued general fund operating support in a constrained “flat” request for FY26–FY27 while prioritizing school funding reliability.
- Lump‑sum CIP buckets to allow prioritized execution of facility repairs and upgrades statewide.
- Staffing and program requests connected to attendance reengagement, mathematics focus in middle school, mental‑health interventionists and facility planning.

Ending note: DOE officials said they will return requested follow‑ups on specific land‑jurisdiction issues, detailed teacher staffing breakdowns, and the status of individual CIP projects. The department framed the budget as balancing fiscal limits with the need to sustain gains in student outcomes and restore facility maintenance capacity.