Bill Text: HI HB1537 | 2024 | Regular Session | Introduced
Bill Title: Proposing Amendments To Articles Viii And X Of The Constitution Of The State Of Hawaii To Authorize The Legislature To Establish A Surcharge On Residential Investment Property To Increase Funding For Public Education.
Spectrum: Partisan Bill (Democrat 9-0)
Status: (Introduced - Dead) 2024-02-14 - Report adopted. referred to the committee(s) on FIN as amended in HD 2 with Representative(s) Matsumoto voting aye with reservations; Representative(s) Alcos, Garcia, Kong, Pierick, Ward voting no (5) and Representative(s) Matayoshi, Takayama, Todd excused (3). [HB1537 Detail]
Download: Hawaii-2024-HB1537-Introduced.html
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HOUSE OF REPRESENTATIVES |
H.B. NO. |
1537 |
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THIRTY-SECOND LEGISLATURE, 2024 |
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STATE OF HAWAII |
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A BILL FOR AN ACT
Proposing amendments to articles viii and x of the constitution of the state of Hawaii to authorize the legislature to establish a surcharge on residential investment property to increase funding for public education.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION
1. The
legislature finds that article X, section 1, of the
Constitution of the State of Hawaii requires the State to provide a system of
public education, which includes K-12 and post secondary education institutions. Compared to other states, Hawaii is unique
because the State is responsible for providing and funding public education and
has only one public higher education system in the State. As a result, funding for public education in
Hawaii is primarily sourced from the general revenues of the State.
The legislature further finds that public
education in Hawaii is not adequately funded. According to a 2017 analysis of real property
tax in Hawaii performed by the department of business, economic development,
and tourism, Hawaii's education expenditures, as a share of combined state and
local government expenditures, is 27.3 per cent and ranks as the lowest in the
nation. At $12,855 per child, Hawaii
trails mainland school districts of similar size when adjusting for cost of
living. This inadequate funding of
Hawaii's public school system has played a role in driving many Hawaii families
to enroll their children in private schools, leaving Hawaii with one of the
highest rates of private school enrollment in the nation according to the
United States Census Bureau.
The legislature finds that the United States Department of Education
currently considers over seventy per cent of Hawaii's public schools to be
Title I schools. Additionally, a
majority of public school students are now considered high-needs students,
meaning they are students who qualify for free or reduced price lunch, English
language learners, or special education students.
The legislature finds that funding of
public higher education in the State has declined as a portion of the state
budget from nine per cent in 2013 to seven per cent in 2022. During the same period, the cost of higher
education has increased nationally. The
2022 Hawaii Databook reports that the number of faculty, staff, and personnel
at the University of Hawaii has declined from 2019 to 2022. Reductions in funding and available state
revenue have compromised the sustainability and availability of programs at the
State's only public higher education institutions. With the costs of a college education rising,
the legislature further finds that access to, and affordability of, public
universities is even more critical for Hawaii residents. The University of Hawaii facilities are aged,
lack current investment, and are not contemporary to other universities due to
inadequate funding investment. While
statewide need for higher education and enrollment are ever increasing, the
lack of historical public funding support undermines the State's ability to
meet this demand.
The legislature finds that Hawaii's K-12
school and university facilities are aging, and funding for the repair and
maintenance of older facilities and building of newer facilities is sorely
needed. The mean age of K-12 school
facilities in Hawaii is sixty-one years; the average school building is
forty-four years old, and fifty-three buildings are over one hundred years old. The majority of buildings at the University
of Hawaii were constructed over forty years ago. Classroom facilities, student housing
buildings, campus amenities, and facilities that support the physical plant of
the campus have not been adequately funded to the level to support regular
routine maintenance.
The legislature finds that after adjusting
for the high cost of living
in Hawaii, teachers' average salaries are in the lower half of pay compared to
other states in the United States. State spending on public education is
the lowest in the nation and is ranked as the forty-ninth worst state in the
nation for teachers.
The legislature further finds that the
COVID-19 pandemic brought unprecedented challenges that had a disproportionate effect on students of color and
students from low-income backgrounds.
The federal government was able to inject funds through the American
Rescue Plan and highlighted the importance of increased funds for public
education in the State.
The legislature also finds that chronic
underfunding in public education undermines the State's goal of providing
a quality education to all of Hawaii's students and to having an educated
workforce. Insufficient funding results
in delayed repairs to school facilities, overheated classrooms, larger class sizes, a lack of adequate classroom supplies,
elimination of arts and career and technical education courses, budget cuts for
special education and English language learner programs, increased in-state
tuition costs to attend the University of Hawaii, and an increasing number of
vacant teacher positions statewide. It
is necessary to develop a new means of funding Hawaii's public education system
to ensure that the State will be able to prepare all students to meet the
social and economic demands of the twenty-first century.
The cost of housing is a significant
deterrent to affordability of residing in Hawaii. Real estate owned by nonresident investors
exacerbates the economics of unaffordability of housing. The State needs its residents to be educated
and for local businesses and industry to have a well-educated resident
workforce. Enabling funding from real
estate speculation to support public education infrastructure within the State
is rational.
The purpose of this Act is to propose an
amendment to the Constitution of the State of Hawaii to increase funding for
public education for all students of Hawaii by authorizing the legislature to
establish a surcharge on residential investment property.
SECTION 2. Article VIII, section 3, of the Constitution of the State of Hawaii is amended to read as follows:
"TAXATION
AND FINANCE
Section
3. The taxing power shall be
reserved to the State, except so much thereof as may be delegated by the
legislature to the political subdivisions, and except that all functions,
powers and duties relating to the taxation of real property shall be exercised [exclusively]
by the counties, with the exception of the county of Kalawao[.];
provided that the legislature shall not be prohibited from establishing a
surcharge on residential investment property pursuant to Article X, section 1. The legislature shall have the power to
apportion state revenues among the several political subdivisions."
SECTION 3. Article X, section 1, of the Constitution of the State of Hawaii is amended to read as follows:
"PUBLIC EDUCATION
Section 1. The State shall provide for the establishment, support and control of a statewide system of public schools free from sectarian control, a state university, public libraries and such other educational institutions as may be deemed desirable, including physical facilities therefor. There shall be no discrimination in public educational institutions because of race, religion, sex or ancestry; nor shall public funds be appropriated for the support or benefit of any sectarian or nonsectarian private educational institution, except that proceeds of special purpose revenue bonds authorized or issued under section 12 of Article VII may be appropriated to finance or assist:
1. Not-for-profit corporations that provide early childhood education and care facilities serving the general public; and
2. Not-for-profit private nonsectarian and sectarian elementary schools, secondary schools, colleges and universities.
The legislature may
establish, as provided by law, a surcharge on residential investment property
valued at $3,000,000 or greater to increase
funding for public education for all of Hawaii's children and adults.
For the purposes of
this section:
The term
"residential investment property" means all real property including
apartments and condominiums and appurtenances thereto, including buildings,
structures, fences and improvements erected on or affixed to such real property,
and any fixture that is erected on or affixed to the land, buildings,
structures, fences and improvements; and all machinery and other mechanical or
other allied equipment, and the foundations thereof, that are dedicated for
residential use and that do not serve as the owner's primary residence;
provided that the surcharge shall not apply to any affordable housing
development that is subject to a regulatory agreement with the State or a
county."
SECTION 4. The question to be printed on the ballot shall be as follows:
"Shall the legislature increase funding for public education for all of Hawaii's children and adults by establishing, as provided by law, a surcharge on residential investment property valued at $3,000,000 or greater, excluding a homeowner's primary residence?"
SECTION
5. Constitutional material to be
repealed is bracketed and stricken. New
constitutional material is underscored.
SECTION 6. This amendment shall take effect upon
compliance with article XVII, section 3, of the Constitution of the State of
Hawaii.
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INTRODUCED BY: |
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Report Title:
Constitutional Amendment; Public Education; Residential Investment Property Surcharge
Description:
Proposes amendments to the Hawaii State Constitution to increase funding for public education for the children and adults of Hawaii by authorizing the Legislature to establish, as provided by law, a surcharge on residential investment property valued at $3,000,000 or greater.
The summary description
of legislation appearing on this page is for informational purposes only and is
not legislation or evidence of legislative intent.
