NOTE:  As provided in LFC policy, this report is intended only 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 for other purposes.

 

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F I S C A L   I M P A C T   R E P O R T

 

 

 

SPONSOR:

Romero

 

DATE TYPED:

1/28/03

 

HB

 

 

SHORT TITLE:

At-Risk Youth Training Program

 

SB

161

 

 

ANALYST:

Collard

 

APPROPRIATION

 

Appropriation Contained

Estimated Additional Impact

Recurring

or Non-Rec

Fund

Affected

FY03

FY04

FY03

FY04

 

 

 

$118.3

 

See Narrative

Recurring

General Fund

 

 

 

 

 

 

(Parenthesis ( ) Indicate Expenditure Decreases)

 

Relates to Appropriation in the General Appropriation Act

 

SOURCES OF INFORMATION

 

Responses Received From

New Mexico Labor Department

 

SUMMARY

 

     Synopsis of Bill

 

Senate Bill 161 appropriates $118.3 from the general fund to the Labor Department for the purpose of contracting for an at-risk youth employment training program in Bernalillo, Torrance, Sandoval, and Valencia counties.

 

FISCAL IMPLICATIONS

 

The appropriation of $118.3 contained in this bill is a recurring expense to the general fund. Any unexpended or unencumbered balance remaining at the end of FY04 shall revert to the general fund. 

 

ADMINISTRATIVE IMPLICATIONS

 

The New Mexico Labor Department suggests that this bill will require the department to identify staff to provide administrative and oversight services on behalf of the project.  Appropriate administrative funds and resources must be provided to deliver these services. 

 

RELATIONSHIP

 

Senate Bill 161 is related to the general appropriations act.  In the Operations program of the Labor Department, $700.0 is appropriated from the general fund to fund at-risk youth programs in the state.

 

TECHNICAL ISSUES

 

The Labor Department indicates there is no specific service or type of program identified other than training and employment programs and more definition is needed.

 

The department also notes that, as with any add-on project funded outside the realm of the department’s federally funded mandates, amounts for administrative costs must be appropriated to the department.  For similar general fund transactions, historically the department has been allowed to charge a six percent administrative fee against the appropriation.

 

OTHER SUBSTANTIVE ISSUES

 

The Labor Department suggests the alternative of awarding the funds to the department by specifically identifying the department as the provider and assuring the department the ability to program these funds within the  currently existing field office structure in the designated counties.  This would provide greater efficiency and would incur fewer administrative costs.  The same services are currently being funded and provided in these counties through the Central Area Workforce Development Board under the Workforce Investment Act for youth activities.

 

POSSIBLE QUESTIONS

 

  1. What are the administrative costs associated with this bill?

 

  1. Is it possible that this bill will serve the youth in these counties more efficiently than the Central Area Workforce Development Board?

 

KBC/sb/njw