Fiscal impact reports (FIRs) are prepared by the Legislative Finance Committee (LFC) for standing finance

committees of the NM Legislature. The LFC does not assume responsibility for the accuracy of these reports

if they are used for other purposes.

Current FIRs (in HTML & Adobe PDF formats) are a vailable on the NM Legislative Website (legis.state.nm.us).

Adobe PDF versions include all attachments, whereas HTML versions may 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 Salazar

DATE TYPED 2/26/05

HB 399

SHORT TITLE Community College Work Force Training

SB

ANALYST Williams

APPROPRIATION

Appropriation Contained Estimated Additional Impact Recurring

or Non-Rec

Fund

Affected

FY05

FY06

FY05

FY06

$300.0

Recurring General Fund

(Parenthesis ( ) Indicate Expenditure Decreases)

Relates to Appropriation in the General Appropriation Act for Commission on Higher Education

SOURCES OF INFORMATION

LFC Files

New Mexico Association of Community Colleges

Economic Development Department

Office of Workforce Training

No Response Received From

Commission on Higher Education (CHE)

SUMMARY

Synopsis of Bill

House Bill 399 appropriates $300 thousand from the general fund to the commission on higher

education for non-credit work force training courses and programs offered by public community

colleges in the area of high skills and high wage occupations.

Significant Issues

High skills training programs are funded in FY05 in the general fund operating budget at $600

thousand. Budget recommendations of both the legislative and executive branches propose flat

funding in FY06.

Non-credit classes at community colleges do not receive formula funding through the instruc-

tional and general component of the higher education funding formula. The Economic Devel-

opment Department notes community colleges offer these classes on a cost recovery basis, and

such classes may be prohibitively expensive.

House Bill 399 -- Page 2

PERFORMANCE IMPLICATIONS

The attached page from the NMACC provides data for various sub-measures of entities served in

FY04 when initial general fund monies of $300 thousand were appropriated to enhance the exist-

ing program. Additional outcomes-based measures are not available for the program. The Of-

fice of Workforce Development notes “for participants under the Workforce Investment Act,

some reporting of retention and success completion rates should be required.”

FISCAL IMPLICATIONS

The appropriation of $300 thousand 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 general fund.

TECHNICAL ISSUES

The Office of Workforce Development proposes an amendment is needed to better identify the

“work force training courses” as well as the need for definitions for “high skills” and “high oc-

cupations”.

OTHER SUBSTANTIVE ISSUES

The Office of Workforce Development notes “there will be coordination with state or local

workforce development boards mandated by HB 98.”

ALTERNATIVES

In 2003, the legislature established the work force skills development fund, administered by the

commission on higher education, to “provide for the development, expansion and support of

broad-based entry level high skills training programs at community colleges” (House Bill 394 or

Chapter 368) The fund was established pursuant to the recommendations of the blue ribbon task

force on higher education formula funding. To date, monies have not been appropriated to the

fund. The legislature may wish to consider the work force skills development fund as a mecha-

nism to plan and prioritize needs such as those as identified in this bill.

See attachment of Summary of Non-Credit Contract Workforce Activities at Community Col-

leges.

ANA/rs

House Bill 399 -- Page 3

ATTACHMENT