NOTE: As provided in LFC policy, this report is intended for use by the standing finance committees of the legislature.  The Legislative Finance Committee does not assume responsibility for the accuracy of the information in this report when used in any other situation.

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(Parenthesis ( ) Indicate Expenditure Decreases)

Relates To The General Appropriation Acts: House Bill 2 and Senate Bill 98

Relates to House Bill 206 and Senate Bill 67

SOURCES OF INFORMATION

LFC files

Department of Finance and Administration (DFA)

No response received

Children, Youth and Families Department (CYFD)

SUMMARY

Synopsis of Bill

House Bill 86 appropriates $100.0 from the general fund to the Department of Finance and Administration to support the big brother and big sisters program in Chaves and Eddy counties. Any unexpended or unencumbered balance remaining at the end of FY02 reverts to the general fund.

Significant Issues

DFA administers statewide funding for big brothers and big sisters programs. For FY01, the statewide programs received $595.0 as a DFA special appropriation in the General Appropriation Act of 2000. DFA and the Legislative Finance Committee have recommended $595.0 for FY02. In FY01, seven big brothers and big sisters programs applied for and received funding through this statewide appropriation.

The Chaves and Eddy counties big brothers and big sisters program is in its beginning stages and has not applied to DFA for part of the statewide appropriation. The General Appropriation Act of 2000 earmarked $50.0 of the statewide appropriation to support the Chaves and Eddy counties program. DFA reports that of the $50.0, the Chaves and Eddy counties program had a balance of $46.0 as of January, 2001 and it is spending approximately $2.0 per month. The contract that DFA's Local Government Division entered into with the Chaves and Eddy counties program is a multi-year contract that expires in June, 2002. This suggests that an additional appropriation for the Chaves and Eddy counties program for FY02 may not be necessary.

PERFORMANCE IMPLICATIONS

Appropriations for big brothers and big sisters programs have been made to DFA for a number of years. DFA serves primarily as a means to flow through funding to the programs and does not have the subject expertise to ensure the programs reach their intended results. DFA is now a performance-based budgeting (PBB) agency. The big brothers and big sisters program does not come under the scope of any of DFA's four PBB programs. From a performance standpoint, the appropriation would be better made to the Children, Youth and Families Department, most appropriately to CYFD's "Prevention and Intervention" program.

FISCAL IMPLICATIONS

The appropriation of $100.0 contained in this bill is a recurring expense to the general fund. Any unexpended or unencumbered balance remaining at the end of FY02 shall revert to the general fund.

ADMINISTRATIVE IMPLICATIONS

DFA does not receive any financial resources to administer the big brothers and big sisters program.

From a management point of view, it may be preferable for the Chaves and Eddy county big brother and big sisters to apply for the statewide funding along with the other big brothers and big sisters program in the state.

RELATIONSHIP

House Bill 2 and Senate Bill 98 include $595.0 in general fund for Big Brothers and Big Sisters programs statewide.

House Bill 206 and Senate Bill 67 would appropriate $300.0 to DFA to support youth mentoring programs statewide.

LP/prr:ar