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.

 

The most recent FIR version (in HTML & Adobe PDF formats) is available on the Legislative Website.  The Adobe PDF version includes all attachments, whereas the HTML version does not.  Previously issued FIRs and attachments may be obtained from the LFC in Suite 101 of the State Capitol Building North.

 

 

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

 

 

 

SPONSOR:

Vaughn

 

DATE TYPED:

03/15/03

 

HB

658/aSEC

 

SHORT TITLE:

Head Start Program Funds

 

SB

 

 

 

ANALYST:

Weber

 

APPROPRIATION

 

Appropriation Contained

Estimated Additional Impact

Recurring

or Non-Rec

Fund

Affected

FY03

FY04

FY03

FY04

 

 

 

$0.0

 

 

 

 

 

 

 

 

 

 

(Parenthesis ( ) Indicate Expenditure Decreases)

 

Duplicates  SB 572

 

SOURCES OF INFORMATION

 

Responses Received From

Human Services Department

 

SUMMARY

 

     Synopsis of SEC Amendment

 

The Senate Education Committee made the following changes:

 

  1. On page 1, line 12, after "USED" strike the remainder of the line, strike line 13 through "PROVIDERS" and insert in lieu thereof "TO CONTRACT AND SUBCONTRACT WITH PRIVATE AND NONPROFIT PROGRAMS THAT MEET FEDERAL HEAD START PERFORMANCE STANDARDS".
  2. On page 1, line 22, strike "collaborate" and insert in lieu thereof "subcontract".
  3. On page 1, line 23, after "provide" strike the remainder of the line, strike "services" on line 24 and insert in lieu thereof "programs that meet federal head start performance standards".,

 

The amendment clarifies areas where there could have been confusion but does not change the intent or potential impact of House Bill 658.

 

 

 

     Synopsis of Original Bill

 

House Bill 658 would provide for at least twenty-five percent of Temporary Assistance for Needy Families (TANF) maintenance of effort (MOE) funds appropriated for Head Start programs to be used to contract or collaborate with private and nonprofit child care providers.

 

     Significant Issues

 

The TANF regulations require that states continue to spend a certain amount of state funds on TANF activities.  This spending is called MOE, and is based on the size of the federal grant and historical state spending under the Aid to Families with Dependent Children (AFDC) program.  The amount for New Mexico that has been calculated for fiscal year 2004 is $32.7 million.

 

In its appropriations of state funds for the purposes of MOE, the legislature has provided money to the Children, Youth, and Families Department (CYFD) for Head Start activities.  In fiscal year (FY) 03, $2 million was appropriated for this purpose.  The Executive and Legislative Finance Committee (LFC) recommendations for FY04 would continue funding at this level. Under HB 658, $500,000 would need to be used to contract with private and nonprofit childcare providers to provide Head Start and related child care services.

 

CYFD uses the state Head Start money to fund agreements with a small number of providers.  All of these providers are private and/or nonprofit organizations. It does not appear that SB 572 would change current practices.

 

HB 658 states that the funds “shall be used to contract or collaborate” with providers.  It is unclear what is meant by “collaborate”.  Both HSD and CYFD would like to ensure that the MOE funds are used for the provision of services.

 

MW/sb:yr