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:

Salazar

 

DATE TYPED:

02/14/03

 

HB

394

 

SHORT TITLE:

Work Force Skills Development Fund

 

SB

 

 

 

ANALYST:

Williams

 

APPROPRIATION

 

Appropriation Contained

Estimated Additional Impact

Recurring

or Non-Rec

Fund

Affected

FY03

FY04

FY03

FY04

 

 

 

NFI

 

 

 

 

 

 

 

 

 

 

(Parenthesis ( ) Indicate Expenditure Decreases)

 

Duplicates SB 368

Relates to

HB 567/SB 455:  Faculty Development Fund

HB 391/SB 366:  LFC Technology Enhancement Fund

HB 392/SB 370:  LFC Higher Education Program Development Enhancement Fund

HB 393/SB369:  LFC Higher Education Performance Fund

HJM 27/SJM 25:  LFC Higher Education Performance Fund

HB 160/SB 221:  Work Force Skills Development Fund

SB 14:  Community College High Skills Training

 

SOURCES OF INFORMATION

 

LFC Files

Commission on Higher Education (CHE)

Department of Labor (DOL)

Economic Development Department

 

SUMMARY

 

     Synopsis of Bill

 

House Bill 394 creates a new, non-reverting fund, the Work Force Skills Development Fund.  Money in the money is appropriated to the CHE to provide matching funds from the Work Force Skills Development Fund to the state’s community colleges for the development, expansion and support of broad-based entry-level high-skills training programs. 

 

The CHE would administer the fund and develop rules by which applications for funding would be considered.  Applications would be subject to competitive selection by a panel of education, business and labor experts appointed by CHE.  The community college would provide an equal or greater funding match from non-state sources.

 

     Significant Issues

 

DOL notes the program could duplicate existing programs such as those available through Workforce Investment Act and the In-Plant training program.

 

This is a Legislative Finance Committee-sponsored bill.

 

FISCAL IMPLICATIONS

 

No fiscal impact.  This bill does not include an appropriation.

 

OTHER SUBSTANTIVE ISSUES

 

CHE notes this bill reflect the Blue Ribbon Task Force on Higher Education-recommended Base Plus Incentives funding approach.

 

According to CHE, this funding would support an incentive program directly linking education, training and economic development for rural and urban areas along with regional and statewide needs.  In addition, this program would complement the state’s in-plant training program as well as the federal Workforce Investment Act’s voucher system. 

 

Under the provisions of the Accountability in Government Act, two-year institutions report performance associated with an outcome measure addressing percent of graduates who were placed in jobs in New Mexico based on unemployment insurance wage data.  In addition to performance measures required by AGA, two-year institutions provide data relevant to five major areas of a community college mission, including responding to the ongoing training needs of the state’s workforce. 

 

AW/njw