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Four years after its creation, a state agency created to expedite school construction projects is at risk of losing all of its staff and funding.

Several bills in the Legislature aim to strip the School Facilities Authority of its responsibility over construction funding and projects, including a historic $200 million investment in the creation of pre-kindergarten classrooms. 

The authority was established in 2020 to take over the construction of new school facilities from the Hawaii Department of Education. Legislators have since tasked SFA with building a new school on Maui, constructing teacher housing and creating pre-kindergarten classrooms to advance the state’s goal of providing all 3- and 4-year-olds access to preschool by 2032. 

Some legislators say the authority has fallen short of its intended goal, citing SFA’s struggle to hire staff and make headway on projects over the past two years. For example, while the state initially tasked SFA with spending $200 million on constructing pre-kindergarten classrooms by June — enough money for roughly 200 classrooms — only 13 classrooms have been completed so far. 

The current version of the state budget, along with another bill involving pre-kindergarten facilities, shifts authority over SFA’s projects and funding to the DOE. But some legislators have expressed skepticism about the plan, pointing to the department’s own struggles to update and maintain school facilities. 

Last November, DOE proposed to lapse nearly half a billion dollars in construction funding, citing permitting delays and internal challenges with project oversight.

A Slow Start For SFA

While legislators created SFA in 2020, the authority lacked leadership until 2022, when Chad Farias was appointed executive director. The authority received funding for its projects in the same year, including $200 million for constructing pre-kindergarten classrooms and $20 million for building a new elementary and middle school in Central Maui. 

But SFA continued to face delays. In a January briefing before the Senate Ways and Means Committee, Farias said SFA struggled to find an office space for its six-member staff over the past year. When asked about teacher housing that burned down on Molokai, Farias said he was unaware of the incident and didn’t have an inventory of school facilities across the state. 

Farias resigned as executive director at the end of January.

“To me, SFA seems like an extra amount of money that needs to be spent on the administration of an authority,” said Rep. Jeanne Kapela, who serves on the House Education Committee.

Two bills now aim to strip SFA of its oversight and funding for school construction projects. 

Under , half of the $200 million appropriated to SFA for pre-kindergarten classrooms would go to the DOE. The department could spend the $100 million on any school construction project, not just preschools. 

Of the remaining $100 million, SFA would lose any funding it doesn’t spend by the end of the fiscal year. Riki Fujitani, SFA’s interim executive director, estimates the authority will spend or allot $60 million in contracts by June 30. 

The current version of the state budget also eliminates all of SFA’s funding and staff positions. Funding for projects formerly assigned to SFA, including teacher housing and new schools, has been reappropriated to DOE. 

Sen. Donovan Dela Cruz, chair of the Senate Ways and Means Committee, and Senate Education Committee Chair Michelle Kidani did not respond to requests for comment. 

Fujitani said the authority has gained momentum and can complete projects more efficiently moving forward.  

The initial goal of building roughly 200 pre-kindergarten classrooms in two years was unrealistic, Fujitani said, but he believes SFA can complete 40 to 50 classrooms a year moving forward. The authority has plans to keep spending construction money until the Legislature says otherwise, he added. 

“The key is to create standards, develop a process and keep at it,” Fujitani said. “We’re on that track, but now it’s going to stop.”

Concerns Remain About DOE’s Capacity

But while some senators aim to change the state’s approach to school construction, other lawmakers and advocates remain skeptical of the DOE’s ability to take on millions in new funding and projects. 

Kerrie Urosevich, executive director of Early Childhood Action Strategy, said she’s unsure where pre-kindergarten facilities fall on the DOE’s list of priorities. She pointed to the department’s struggles to spend existing construction funds, adding that SFA completed its first set of pre-kindergarten classrooms under budget and less than a year after the state made the project’s funding available.

“Why disrupt something that’s still working, risk delays and put this on a department that’s already far behind?” Urosevich said. “I don’t really understand the justification behind that.”

Cutting funding for pre-kindergarten classrooms in half would significantly hinder the state’s progress in expanding preschool access for young children, she added. Hawaii ranks 44th in the nation for 4-year-olds’ access to state preschool programs, according to the .

In response to the DOE’s proposal to lapse nearly half a billion dollars in school construction funds, senators this session to reorganize the DOE office responsible for school facilities and eliminate SFA altogether.

Currently, a single assistant superintendent oversees DOE’s Office of Facilities and Operations. While SFA is responsible for a handful of projects, like teacher housing and pre-kindergarten classrooms, assigned by the Legislature, the Office of Facilities and Operations oversees most of the construction and maintenance of DOE campuses, along with school meals, transportation and security.

DOE said in December that no one is responsible for seeing construction projects from beginning to end.

But the bill died in the House last month, with some representatives questioning provisions that would allow DOE to act as a real estate developer by purchasing and leasing property.

“That should not be the concern of the department,” said Rep. Amy Perruso, who serves on the House Education Committee. “Their focus should be on building facilities.” 

Kapela said she’s unsure what role, if any, SFA should play in addressing long-term challenges with unspent construction funds and delayed school projects. She added that, if DOE takes on more responsibility for school facilities, the Legislature and department must have more collaboration to ensure that projects are adequately funded and completed. 

“If we’re able to support DOE, there’s no reason why the department can’t accomplish its job,” Kapela said. 

Civil Beat’s education reporting is supported by a grant from Chamberlin Family Philanthropy.