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SPONSOR: |
Maes |
DATE TYPED: |
|
HB |
|
||
|
SHORT TITLE: |
Disability Technology Purchase Financing |
SB |
199 |
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|
|
ANALYST: |
L. Baca |
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APPROPRIATION
|
Appropriation
Contained |
Estimated
Additional Impact |
Recurring or
Non-Rec |
Fund Affected |
||
|
FY04 |
FY05 |
FY04 |
FY05 |
|
|
|
|
$519.0* |
|
|
Recurring |
General
Fund |
(Parenthesis
( ) Indicate Expenditure Decreases)
REVENUE
|
Estimated Revenue |
Subsequent Years Impact |
Recurring or
Non-Rec |
Fund Affected |
|
|
FY04 |
FY05 |
|
|
|
|
|
|
Significant |
Recurring |
Federal
Funds |
(Parenthesis ( ) Indicate Revenue Decreases)
LFC
files
Response
Received From
Division
of Vocational Rehabilitation (DVR), New Mexico Public Education Department
SUMMARY
Synopsis of Bill
Senate
Bill 199 appropriates $519 thousand from the general fund to the New Mexico
Technical Assistance program of the DVR of the PED to provide state matching
funds for alternative
financing programs to help persons with disabilities
purchase assistive technology devices and services.
Significant Issues
In
its analysis, the PED-DVR states that federal matching funds have
been appropriated to carry out Title III of the Technology-Related
Assistance Act of 1998 for Federal Fiscal Year 1999 and will be lost to the
state if not matched by
The
PED-DVR reports that funds are made available for two
federal grant awards for alternative financing programs to help persons with
disabilities purchase assistive technology devices and services. The Alternative Financing Federal Award of
$1.27 million and state match of $423.7 million will provide a wide range of
loans for needs such as home modifications, e.g., accessible bathrooms, expensive
lift equipped vehicles and employment modifications that are not covered by
The
second program, Telework Federal award of $862
thousand and the state match of $95.8 thousand, will
provide loans for equipment needed to start a home business or for an employee
with disability to work form a remote location.
This program provides about 9 federal dollars for every state dollar
invested.
The
PED-DVR report that these federal and state funds will establish a permanent
loan-fund that will continue through investment and interest on principal and
from loans allowed in the federal authorizing legislation, the
Technology-Related Assistance For Individuals with Disabilities
Act of 1998. Interest from loans, repaid
loans and earnings from investments are top be used to
continue the fund’s solvency with all activities carried
pursuant to the requirements of the authorizing federal legislation.
FISCAL
IMPLICATIONS
The
appropriation of $519 contained in this bill is a recurring expense to the
general fund. Any unexpended or unencumbered balance remaining at the end of
FY05 shall revert to the general fund.
OTHER
SUBSTANTIVE ISSUES
The
PED-DVR state that unmatched federal funds will be returned to the U.S.
Treasury and that similar funds for these programs have not be included in the
U.S. Department of Education for FY05.
Continuation of the program using repaid loans,
earnings from investments and interest from loans appears optimistic, given
contemporary interest rates and market conditions. Unless economic conditions improve markedly,
becoming self-sustaining could prove difficult for this program.
LB/lg:yr