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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 02/14/05 HB 398

SHORT TITLE Expand Certain Community Action Programs

SB

ANALYST Weber

APPROPRIATION

Appropriation Contained Estimated Additional Impact Recurring

or Non-Rec

Fund

Affected

FY05

FY06

FY05

FY06

$3,600.0

Recurring

General

(Parenthesis ( ) Indicate Expenditure Decreases)

SOURCES OF INFORMATION

LFC Files

Responses Received From

Human Services Department

SUMMARY

Synopsis of Bill

House Bill 398 appropriates $3.6 million from the general fund to the Human Services Depart-

ment to expand innovative and effective community action programs statewide.

Significant Issues

Human Services notes, New Mexico has eight Community Action Agencies that serve all 33

counties. They receive federal funding through the Community Services Block Grant to provide

community action programs. The Community Action Program was established in 1965. The

purposes of the program are: the strengthening of community capabilities for planning and coor-

dination. This is achieved through the use of a broad range of federal, state, local and other as-

sistance towards the elimination of poverty. The organization of a range of services related to

the needs of low-income families and individuals is offered so that these services have a measur-

able and potentially major impact on the causes of poverty. The greater use of innovative and

effective community-based approaches to attack the causes and effects of poverty and commu-

nity breakdown is required.

House Bill 398 -- Page 2

The Community Action Act § 27-8-1 et seq. NMSA 1978 defines community action agencies.

No other agencies in New Mexico hold this designation other than those eight agencies.

President Bush’s recent budget proposal does not include any funds for the Community Services

Block grant in FFY06.

PERFORMANCE IMPLICATIONS

All CAAs currently report client contact/service information through the federal reporting sys-

tem report called the Community Services Block Grant Information System (CSBG/IS). The re-

port includes ROMA (Results Oriented Management and Accountability) and, new for 2005, the

National Indicators of Community Action Performance. The CAAs are required to report all

funding sources, programs and client outcome data on the CSBG/IS. Any additional funding re-

ceived by the agencies would be reported utilizing this system to measure client services pro-

vided. Reporting of the national performance indicators is an important component of the com-

munity action initiative to use results-focused management principles.

Performance requirement similar to these should be included for the additional general fund pro-

vided in this bill.

FISCAL IMPLICATIONS

The appropriation of $3.6 million contained in this bill is a recurring expense to the general fund.

Any unexpended or unencumbered balance remaining at the end of FY06 shall revert to the gen-

eral fund.

TECHNICAL ISSUES

A concise definition of innovative and effective may be necessary to achieve the desired result.

WHAT WILL BE THE CONSEQUENCES OF NOT ENACTING THIS BILL.

With federal community action funding in jeopardy the programs may expire without this appro-

priation.

MW/sb