HCR 110: requesting the auditor to conduct an audit of the department of education's capital improvement project finances.

HOUSE CONCURRENT

RESOLUTION

requesting the auditor to conduct an audit of the department of education's capital improvement project finances.

     WHEREAS, the Department of Education is responsible for the repair and maintenance of 4,425 buildings statewide, which is more than twenty million square feet of space; and

     WHEREAS, this is a time-consuming and financially‑draining task as approximately twenty percent of Hawaii's public schools are more than one hundred years old, and the average age of school buildings in the State is seventy‑two years; and

     WHEREAS, properly repairing and maintaining public school buildings is necessary for the safety of Hawaii's students and teachers; and

     WHEREAS, as of January 2024, the Department of Education had over $2 billion in unspent capital improvement program funds at school facilities; and

     WHEREAS, the Department of Education received nearly $1 billion in the 2021–2023 fiscal biennium for capital improvement project appropriations; and

     WHEREAS, fiscal accountability and oversight are critical to ensure proper spending by the Department of Education while providing Hawaii's students with safe learning environments; and

     WHEREAS, this body finds that it is necessary to increase transparency and disciplined and timely spending of capital improvement program funds by the Department of Education, as many public school facilities in the State are in need of repair or renovation; and

     WHEREAS, an audit of the Department of Education could help identify any shortcomings in the current distribution of funds and determine any necessary changes to increase the efficiency of the Department of Education's capital improvement repair and maintenance projects; now, therefore,

     BE IT RESOLVED by the House of Representatives of the Thirty-third Legislature of the State of Hawaii, Regular Session of 2025, the Senate concurring, that the Auditor is requested to conduct an audit of the Department of Education's capital improvement projects; and

     BE IT FURTHER RESOLVED that the audit is requested to examine the Department of Education's finances relating to capital improvement projects since 2021; and

     BE IT FURTHER RESOLVED that the audit is requested to include how the Department of Education expends moneys on capital improvement projects, including the prioritization of projects; and

     BE IT FURTHER RESOLVED that the Auditor is requested to submit a report of the findings and recommendations, including any proposed legislation, to the Legislature no later than twenty days prior to the convening of the Regular Session of 2026; and

     BE IT FURTHER RESOLVED that certified copies of this Concurrent Resolution be transmitted to the Auditor and Superintendent of Education.

Report Title: 

DOE; Auditor; Audit; CIP; Finances

STAND. COM. REP. NO.  1544

Honolulu, Hawaii

                , 2025

RE:   H.C.R. No. 110

Honorable Nadine K. Nakamura

Speaker, House of Representatives

Thirty-Third State Legislature

Regular Session of 2025

State of Hawaii

Madame:

     Your Committee on Education, to which was referred H.C.R. No. 110 entitled:

"HOUSE CONCURRENT RESOLUTION REQUESTING THE AUDITOR TO CONDUCT AN AUDIT OF THE DEPARTMENT OF EDUCATION'S CAPITAL IMPROVEMENT PROJECT FINANCES,"

begs leave to report as follows:

     The purpose of this measure is to request that the Auditor conduct an audit of the Department of Education's capital improvement projects.

     Your Committee received testimony in support of this measure from four individuals.  Your Committee received comments on this measure from the Department of Education.

     Your Committee finds that the Department of Education is responsible for the repair and maintenance of 4,425 buildings statewide.  Your Committee further finds that the Department of Education received nearly $1,000,000,000 in the 2021–2023 fiscal biennium for capital improvement project appropriations.  As of January 2024, the Department of Education had over $2,000,000,000 in unspent capital improvement program funds at school facilities.  Your Committee believes that an audit of the Department of Education will help identify any shortcomings in the current distribution of funds and determine any necessary changes to increase the efficiency of the Department of Education's capital improvement repair and maintenance projects.

     As affirmed by the record of votes of the members of your Committee on Education that is attached to this report, your Committee concurs with the intent and purpose of H.C.R. No. 110 and recommends that it be referred to your Committee on Finance.

Respectfully submitted on behalf of the members of the Committee on Education,