SB 2548: School Facilities Authority; Department of Education; Deferred Maintenance; Districts; Appropriation

A BILL FOR AN ACT

RELATING TO SCHOOL FACILITIES.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

     SECTION 1.  The legislature finds that the centralized system for managing school capital improvement projects within the department of education has contributed to a substantial backlog of deferred maintenance.  This structure has resulted in delays, reduced responsiveness to the needs of individual school communities, and challenges in managing project timelines and budgets.

     The legislature further finds that the school facilities authority was established pursuant to Act 72, Session Laws of Hawaii 2020 (Act 72), as a specialized agency focused exclusively on the development and improvement of public school facilities.  Act 72 intended the consolidation of facilities-related expertise within the authority, including the transfer of certain functions and positions from the department of education.  That consolidation has not yet been implemented.

     The legislature also finds that a decentralized, district‑based model for managing deferred maintenance projects will improve efficiency, accountability, and responsiveness.  Localizing management within geographically based districts will allow decisions to be made closer to the schools they affect and provide a phased framework for the authority to assume broader capital improvement responsibilities in the future.

     The purpose of this Act is to modernize the State's school facilities management by requiring the school facilities authority to establish geographically based capital improvement project districts for the localized management of deferred maintenance.

     SECTION 2.  Chapter 302A, Hawaii Revised Statutes, is amended by adding a new section to part VI, subpart C, to be appropriately designated and to read as follows:

     "§302A-    Deferred maintenance project districts; established.  (a)  The authority shall establish geographically based capital improvement project districts to provide for the localized management of project design, construction, and administration related to deferred maintenance.  The boundaries of these districts shall, to the extent practicable, align with the school districts established for administrative purposes by the department.

     (b)  Each district shall be responsible for:

     (1)  Providing localized management and oversight of deferred maintenance project design and construction;

     (2)  Administering project budgets and managing project schedules to ensure timely and cost-effective completion; and

     (3)  Serving as the primary local point of contact for public schools within the district regarding deferred maintenance needs and projects.

     (c)  The authority shall assign dedicated staff, including a district facilities manager, to each district to carry out the functions described in this section."

     SECTION 3.  There is appropriated out of the general revenues of the State of Hawaii the sum of $           or so much thereof as may be necessary for fiscal year 2026-2027 for the purposes of establishing geographically based capital improvement project districts pursuant to this Act.

     The sum appropriated shall be expended by the school facilities authority for the purposes of this Act.

     SECTION 4.  New statutory material is underscored.

     SECTION 5.  This Act shall take effect on July 1, 2050.

Report Title:

School Facilities Authority; Department of Education; Deferred Maintenance; Districts; Appropriation

Description:

Requires the School Facilities Authority to establish geographically based capital improvement project districts for the localized management of deferred maintenance.  Appropriates funds.  Effective 7/1/2050.  (SD1)

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.

A BILL FOR AN ACT

relating to school facilities.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

     SECTION 1.  The legislature finds that the centralized system for managing school capital improvement projects within the department of education has contributed to a substantial backlog of deferred maintenance.  This structure has resulted in delays, reduced responsiveness to the needs of individual school communities, and challenges in managing project timelines and budgets.

     The legislature further finds that the school facilities authority was established by Act 72, Session Laws of Hawaii 2020, as a specialized agency focused exclusively on the development and improvement of public school facilities.  Act 72 intended the consolidation of facilities-related expertise within the authority, including the transfer of certain functions and positions from the department of education.  That consolidation has not yet been implemented.

     The legislature also finds that a decentralized, district‑based model for managing deferred maintenance projects will improve efficiency, accountability, and responsiveness.  Localizing management within geographically based districts will allow decisions to be made closer to the schools they affect and provide a phased framework for the authority to assume broader capital improvement responsibilities in the future.

     The purpose of this Act is to modernize the State's school facilities management by:

     (1)  Requiring the school facilities authority to establish geographically based capital improvement project districts for the localized management of deferred maintenance;

     (2)  Transferring vacant facilities development branch positions from the department of education to the school facilities authority; and

     (3)  Transferring all functions, duties, and funds related to deferred maintenance from the department of education to the school facilities authority.

     SECTION 2.  Chapter 302A, Hawaii Revised Statutes, is amended by adding a new section to part VI, subpart C, to be appropriately designated and to read as follows:

     "§302A-     Deferred maintenance project districts; established.  (a)  The authority shall establish geographically based capital improvement project districts to provide for the localized management of project design, construction, and administration related to deferred maintenance.  The boundaries of these districts shall, to the extent practicable, align with the school districts established for administrative purposes by the department.

     (b)  Each district shall be responsible for:

     (1)  Providing localized management and oversight of deferred maintenance project design and construction;

     (2)  Administering project budgets and managing project schedules to ensure timely and cost-effective completion; and

     (3)  Serving as the primary local point of contact for public schools within the district regarding deferred maintenance needs and projects.

     (c)  The authority shall assign dedicated staff, including a district facilities manager, to each district to carry out the functions described in this section."

     SECTION 3.  (a)  All rights, powers, functions, and duties of the department of education relating to deferred maintenance are transferred to the school facilities authority.

     (b)  All vacant positions within the department of education's facilities development branch as of the effective date of this Act, including all associated funding for salaries and benefits, are transferred to the school facilities authority.

     (c)  All appropriations, items of appropriation, and unexpended balances of funds, including any federal funds, designated for deferred maintenance or facilities development within the department of education, are transferred to the school facilities authority.

     SECTION 4.  There is appropriated out of the general revenues of the State of Hawaii the sum of $           or so much thereof as may be necessary for fiscal year 2026-2027 for the purposes of establishing geographically based districts and implementing the transfer of positions and funds pursuant to this Act.

     The sum appropriated shall be expended by the school facilities authority for the purposes of this Act.

     SECTION 5.  New statutory material is underscored.

     SECTION 6.  This Act shall take effect on July 1, 2026.

Report Title:

School Facilities Authority; Department of Education; Deferred Maintenance; Districts; Transfer

Description:

Requires the School Facilities Authority to establish geographically based capital improvement project districts for the localized management of deferred maintenance.  Transfers all deferred maintenance functions, funds, and vacant facilities development branch positions from the Department of Education to the School Facilities Authority as intended and contemplated in Act 72, SLH 2020.  Appropriates funds.

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.

STAND. COM. REP. NO. 2863

Honolulu, Hawaii

RE:     S.B. No. 2548

        S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Third State Legislature

Regular Session of 2026

State of Hawaii

Sir:

     Your Committee on Ways and Means, to which was referred S.B. No. 2548, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO SCHOOL FACILITIES,"

begs leave to report as follows:

     The purpose and intent of this measure is to modernize and improve the State's school facilities management systems.

     Specifically, the measure requires and appropriates moneys for the School Facilities Authority to establish geographically based capital improvement project districts to provide for the localized management of project design, construction, and administration related to deferred maintenance.

     Your Committee received written comments in opposition to this measure from the Department of Education.

     Your Committee received written comments on this measure from the School Facilities Authority and United Public Workers, AFSCME Local 646, AFL-CIO.

     Your Committee finds that a substantial backlog of deferred maintenance has plagued the Department of Education and adversely impacted the State's schools.  Your Committee also finds that a decentralized, district‑based model for managing deferred maintenance projects, as proposed by this measure, will help alleviate this situation by improving efficiency, accountability, and response times.

     As affirmed by the record of votes of the members of your Committee on Ways and Means that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2548, S.D. 1, and recommends that it pass Third Reading.

Respectfully submitted on behalf of the members of the Committee on Ways and Means,

STAND. COM. REP. NO. 2614

Honolulu, Hawaii

RE:     S.B. No. 2548

        S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Third State Legislature

Regular Session of 2026

State of Hawaii

Sir:

     Your Committee on Education, to which was referred S.B. No. 2548 entitled:

"A BILL FOR AN ACT RELATING TO SCHOOL FACILITIES,"

begs leave to report as follows:

     The purpose and intent of this measure is to:

     (1)  Require the School Facilities Authority to establish geographically based capital improvement project districts for the localized management of deferred maintenance;

     (2)  Transfer all deferred maintenance functions, funds, and vacant facilities development branch positions from the Department of Education to the School Facilities Authority as intended and contemplated in Act 72, Session Laws of Hawaii 2020; and

     (3)  Appropriate funds.

     Your Committee received testimony in support of this measure from Hawaiʻi Children's Action Network Speaks! and one individual.

     Your Committee received comments on this measure from the Department of the Attorney General; Department of Education; Hawaiʻi School Facilities Authority; Hawaii Government Employees Association, AFSCME Local 152, AFL-CIO; and United Public Workers, AFSCME Local 646, AFL-CIO.

     Your Committee finds that the Department of Education's deferred maintenance backlog across public school facilities inhibits the State's capacity to offer local students safe, functional learning environments.  The current governance structure is managed largely from Oahu, creating barriers and delays for project implementation on neighbor islands.  Geographically based capital improvement project districts would enable a more localized and accountable approach to managing deferred maintenance.  This measure aims to improve responsiveness, coordination with school communities, and stewardship of public resources.

     Your Committee has amended this measure by:

     (1)  Deleting language that would have transferred all deferred maintenance functions, funds, and vacant Facilities Development Branch positions from the Department of Education to the School Facilities Authority;

     (2)  Amending section 1 to reflect its amended purpose;

     (3)  Inserting an effective date of July 1, 2050, to encourage further discussion; and

     (4)  Making technical, nonsubstantive amendments for the purposes of clarity and consistency.

     As affirmed by the record of votes of the members of your Committee on Education that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2548, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 2548, S.D. 1, and be referred to your Committee on Ways and Means.

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