The Hawai‘i State Department of Education’s budget plays a crucial role in supporting student success and maintaining the quality of our public school system. Our budget is divided into two main parts: the operating budget and the Capital Improvements Program (CIP) budget.
The $2.18 billion operating budget for fiscal year 2024-25, primarily funded by state tax revenue, covers the day-to-day operations of schools and offices, from teacher salaries to classroom resources. Meanwhile, the CIP budget focuses on the development, maintenance and upgrading of school facilities, funded almost entirely through state bonds.
Together, these budgets ensure that our schools are equipped to provide a safe, engaging and effective learning environment for all students. Learn more about the Department’s budgets below.
Operating Budget
Funding Sources
The fiscal year 2024-25 operating budget funding comes from four sources:
- General funds: Represents approximately 85% of our funding resources. Comes from the State of Hawaiʻi’s general fund, primarily state tax revenues. This is the top source of funding to the Department.
- Federal funds: The second largest source of funding represents approximately 11% in expenditure ceiling resources. The Department receives grants from federal agencies including the U.S. Departments of Education, Agriculture, Defense and Health and Human Services.
- Special funds: Roughly 4% of our expenditure ceiling resource is through special funds. Those coming from revenue-generating activities, including school food services, student bus transportation services, summer school program, after-school programs, adult education, driver education, and use of school facilities.
- Trust funds: May include donations and gifts, foundations & other grants, school athletic program activity collections, and “fair share”.
Direct-to-School Funding
- EDN 100 is almost entirely distributed to schools using the Weighted Student Formula (WSF). The WSF gives schools a specific dollar amount for each student, and additional funds for students with certain characteristics, such as qualifying for the free and reduced lunch program (socio-economically challenged) or being English language learners. This creates a transparent model of funding equity on a statewide basis. The balance of EDN 100 is used to support programs such as athletics, JROTC and Alternative Learning Centers.
- EDN 150 supports special education students who may require or have an Individualized Education Plan.
- EDN 400 pays school bills including sewer, electric, water, repair, food service and others.
- EDN 500 pays for Adult Education programs at public schools.
Support Funding at School, District, and State Levels
The remainder of the budget is spread among EDNs 200 and 300, which provide support at all levels. These include instructional supports, statewide testing, administrative support (personnel, technology and fiscal), community programs such as A+ and adult education, complex area administration, the early learning office to provide pre-kindergarten programs, as well as the Board of Education and Office of the Superintendent.
Agencies (By EDN) that Operate Outside of the Department of Education
- EDN 407 Public Libraries
- EDN 450 Autoridad de Instalaciones Escolares
- EDN 600 Escuelas Charter
- EDN 612 Charter Schools Commission and Administration
- EDN 700 Executive Office on Early Learning
Capital Improvements Program budget
The Capital improvement Budget (CIP) budget is set by the state as part of a comprehensive program to manage state facilities, and is handled separately from the operating budget. Facilities staff work with complex area superintendents and principals to prioritize school-level needs.
Like the EDNs for the operating budget, CIP appropriations are added into planning categories that direct how the funds can be used. Funds appropriated are expended in categories such as:
- Capacity: New Schools, new classroom buildings, land acquisition.
- Repair & Maintenance (R&M): Major R&M projects that extend the useful life of a facility or provide for greater functional/operational efficiency through a significant improvement or upgrade. These may include, but are not limited to: building envelope and infrastructure preservation, structural repairs, interior renovations, site improvements.
- Health & Safety: Traffic safety and parking, flood mitigation, security/vulnerability, hazardous materials, heat abatement, fire alarms, etc.
- Compliance: Projects to address public health and safety, court orders and consent decrees, and federal mandates such as Americans with Disabilities Act and Title IX Gender Equity.
- Instructional: New facilities or major renovations to meet particular program requirements of Career and Technical Education, STEM, Arts, Special Education, and EDSPEC instructional spaces.
- Project Completion: Funding necessary to complete ongoing CIP projects.
- Support Facilities: Administration, library, food service, PE/Athletics, electrical upgrades, state/district/complex offices.
- Technology Infrastructure: Network infrastructure and equipment, program bells and paging systems.