U.S. Education Secretary Arne Duncan, in a telephone news conference yesterday, again scolded Hawai'i for its decision to furlough teachers for 17 school days and said the move could hinder the state's ability to garner competitive federal grant money.

"There's got to be a better way," Duncan said. "When you have tough budget times, what you do with scarce resources reflects your priorities. I don't know anyone who could make a case that eliminating 10 percent of your school days is good for Hawai'i."

To help balance the state budget, Hawai'i cut its public school calendar by 17 days to 163 days, the lowest in the nation.

Duncan's comments were made after he announced the official start of a $4.35 billion federal grant program for schools known as the Race to the Top Fund.

According to the grant criteria, Hawai'i, along with 15 other states of similar size, is eligible to compete for funds ranging from $20 million to $75 million.

Duncan said with the furlough days in place, Hawai'i has weakened its case to receive a portion of those federal grant dollars.

"We encourage Hawai'i to put its best foot forward. But Hawai'i would have to make an absolute compelling case that going to school 10 percent less time will both close the achievement gap and raise the bar," he said. "Frankly, that's a heck of a challenge."

The BOE, teachers and Gov. Linda Lingle agreed in September to a new contract that included the 17 furlough days, equivalent to a 7.9 percent pay cut. The furlough days are all scheduled for Fridays. Nov. 20 will be the fourth of the 17 scheduled furlough days.

The furlough days were part of the DOE's plan to address some $227 million in cuts mandated by Lingle and lawmakers. Those cuts include about $127 million slashed by Lingle in a 14 percent budget restriction equivalent to three furlough days a month.

$35 MILLION AT ISSUE

Duncan's latest comments throw into question how Lingle should spend the bulk of the $35 million in federal stimulus money under her control. She had originally earmarked a large portion of the money for charter schools, which would have better positioned the state for Race to the Top dollars, some say.

Several lawmakers, however, say the governor should consider using the $35 million to cover some of the furlough days, a move that might bolster Hawai'i's position in the eyes of the feds.

Rep. Roy Takumi, chairman of the House Education Committee, is among the lawmakers who believe a portion of the money should be used to buy back some of the furlough days. However, he said it would only be a short-term fix.

"Race to the Top dollars encompass four areas. We may not have qualified for all of them, but needless to say, prior to these furlough days happening, we were positioned to at least capture some of those dollars," Takumi said.

Sen. Will Espero, D-20th ('Ewa Beach, Waipahu), vice chairman of the Senate's special committee on furloughs, also said the governor should consider using the money to cover furlough days. He said the secretary's comments did not come as a surprise.

"We're sending them a really odd message that we want to reform education and make positive changes and compete in Race to the Top, while at the same time we're falling to the bottom," he said.

On Monday, Lingle's office said the money had already been appropriated in the last legislative session and that some of it is being spent on education improvements required under the federal American Recovery and Reinvestment Act.

Linda Smith, Lingle's senior policy adviser, said the money is being spent on "payroll and other expenses." She was not specific on the programs. She did not immediately return a message seeking additional comment yesterday.

PERCEPTIONS MATTER

Earlier this year, education officials said they thought Hawai'i could be competitive for Race to the Top money. The Obama administration's criteria include an emphasis on equitable distribution of teachers between affluent and poor schools, using student data to improve student performance, improving the lowest-performing schools and tying student performance to teacher evaluations. At the time, education officials said these were things Hawai'i could achieve.

Yesterday, however, Bob Campbell, director of the DOE's federal compliance office, said the decision to go with teacher furloughs this year and next year "certainly doesn't help" the state's case.

"It's a perception that we will very clearly be addressing in our application," Campbell said.

Campbell also said there's no language in the grant criteria that specifically disqualifies states because of furloughs or reduction in classroom time.

"Clearly the perception that a reduction in instructional days is somehow a reduction in commitment to education, we're going to have to address that," he said. "While it may not be part of the criteria, it is certainly a perception regarding education in the state of Hawai'i."

This was not the first time Duncan has criticized Hawai'i.

Last month, in a letter, Duncan said Hawai'i is moving in the "wrong direction" by reducing classroom instruction time through teacher furloughs to help close the state's projected $1 billion budget deficit through June 2011.

Duncan and the U.S. Department of Education have criticized several states — including Hawai'i — for using stimulus money to close budget gaps while reducing state spending on education.