The Board of Education supports the establishment of New Century Charter Schools in Hawaii but requires such schools to be fiscally responsible.

New Century Charter Schools shall retain at all times throughout the school year 80 percent of their allocations in their payroll fund accounts to ensure that they have sufficient resources to cover their personnel expenses. In addition, New Century Charter Schools shall not spend any amount in excess of their fiscal year allocations.

The Department of Education shall monitor the New Century Charter Schools to accurately identify projected deficits and shall inform the Board of Education and the local charter school board as soon as a projected deficit is determined. Upon notification from the Department of Education, the local charter school board shall be responsible for developing a plan to ensure that it does not incur a spending deficit during the school year.

Should the New Century Charter School actually incur a deficit, the local school board shall be responsible for all such costs. Neither the State Board of Education nor the Department of Education shall be held responsible for any costs beyond the fiscal year allocations.

Approved: 02/21/02; Repealed: 11/01/07