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

SPONSOR Varela

DATE TYPED 2/17/05

HB 773

SHORT TITLE Santa Fe and Bernalillo Youth and Computer Clubs SB

ANALYST Hadwiger

APPROPRIATION

(in $000s)

Appropriation Contained Estimated Additional Impact Recurring

or Non-Rec

Fund

Affected

FY05

FY06

FY05

FY06

$500.0

Recurring General Fund

(Parenthesis ( ) Indicate Expenditure Decreases)

Duplicates SB698.

SOURCES OF INFORMATION

LFC Files

Responses Received From

Department of Finance and Administration (DFA)

Public Education Department (PED)

SUMMARY

Synopsis of Bill

House Bill 773 appropriates $500,000 from the general fund to the Department of Finance and

Administration (DFA) in FY06 for the purpose of providing staffing and operational expenses in

Bernalillo and Santa Fe counties for computer clubhouses that give youth (ages 6-18) access to

computer technology and mentors.

Significant Issues

DFA provided the following background. There is one computer clubhouse in each Bernalillo

and Santa Fe County. The clubhouses have been in operation for approximately four years with

operating funds granted by Intel Corporation. Unfortunately, at the end of February 2005, fund-

ing from Intel will cease. The computer clubhouses are open year-round and open to all children

free of charge. The clubhouses provide a safe, alternative place for children. Bernalillo County

indicates, according to DFA, this program has been a great success there, providing children an

opportunity to utilize computer technology for their enhancement.

House Bill 773 -- Page 2

PED provided the following information with respect to the benefit of programs such as these.

According to Education News (April 24, 2002), approximately 30% of young people in the low-

est household-income category use computers at home, compared with more than 90% of those

in the highest-income category. If enacted, this legislation would provide students with access

where they may not have it at home.

According to several studies and research, mentoring programs offer substantial benefits to

school-age children:

•

Improved academic performance

•

Increased attendance rates

•

Higher college enrollment rates and higher educational aspirations

•

Better attitudes about school

•

Enhanced self-esteem and self-confidence

•

Improved behavior, both at home and at school, including fewer disciplinary re-

ferrals and less violent and disruptive behavior

•

Improved relationships with parents, teachers and peers

•

Enhanced social, communication, relationship and decision-making skills

•

Heightened career awareness and ability to make vocational and educational

choices

•

Decreased likelihood of dropping out of school, initiating drug and alcohol use or

becoming a teen parent.

FISCAL IMPLICATIONS

The appropriation of $500,000 contained in this bill is a recurring expense to the general fund.

Any unexpended or unencumbered balance remaining at the end of FY06 would revert to the

general fund.

DFA anticipates that this appropriation is an equal split of funding between the two counties.

DFA indicates the funds will help pay for two coordinators (one in Bernalillo county and one in

Santa Fe county), two assistants (one in Bernalillo county and one in Santa Fe county) , 2-4

youth facilitators/mentors (two in each location). Funds will also help pay for computer mainte-

nance, office supplies, software programs, materials, hardware and other operational expenses

incurred for the programs.

ADMINISTRATIVE IMPLICATIONS

DFA recommended that the appropriation be re-directed to Children, Youth and Families De-

partment (CYFD), because similar programs and funds have been administered by CYFD. That

agency has the expertise to identify the needs of youth in Bernalillo and Santa Fe counties with

regard to this program.

DH/lg