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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.
pg_0002
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