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Schools face $12 million budget shortfall

July 6, 2013
The Associated Press

HONOLULU (AP) - Hawaii's Department of Education is scrambling to deal with a projected $12 million budget shortfall.

Honolulu Star-Advertiser reports the shortfall could affect the ability to pay for utilities, transportation, school lunches and substitute teachers.

The Board of Education first learned of the projected cutback at a meeting Tuesday. Superintendent Kathryn Matayoshi told the board the 5 percent restriction is "quite significant."

The governor said in a memo to state departments last week that the state will continue to withhold 5 percent of discretionary spending. The state budget that took effect Monday includes $1.4 billion in general funds for the Department of Education.

State Budget Director Kalbert Young says in light of the department's concerns about financial hardship, he's open to seeing a financial analysis.



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