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

SPONSOR King

DATE TYPED 3/17/2005 HB 892/aHAFC/aSFC

SHORT TITLE Create Next Generation Council and Fund

SB

ANALYST Dunbar

APPROPRIATION

Appropriation Contained Estimated Additional Impact Recurring

or Non-Rec

Fund

Affected

FY05

FY06

FY05

FY06

See HAFC

Amendment

(Parenthesis ( ) Indicate Expenditure Decreases)

Duplicates HB892

REVENUE

Estimated Revenue

Subsequent

Years Impact

Recurring

or Non-Rec

Fund

Affected

FY05

FY06

See HAFC

Amendment

(Parenthesis ( ) Indicate Revenue Decreases)

Duplicates SB614

SOURCES OF INFORMATION

LFC Files

Responses Received From

Children Youth and Families Department (CYFD)

NM Public Education Department (NMPED)

SUMMARY

Synopsis of SFC Amendment

The Senate Finance Committee Amendment to House Bill 892 provides that at least two mem-

House Bill 892/aHAFC/aSFC Page 2

bers of the “next generation council” be from each congressional district.

Synopsis of HAFC Amendment

House Finance and Appropriation Committee amendment to HB892 removes all language per-

taining to making an appropriation.

Synopsis of Original Bill

House Bill 892 appropriates $15 million from the general fund to the Children’s Trust Fund and

a new Next Generation Fund. Each fund would receive $7.5 million. Both funds would be man-

aged by the Children’s Trust Fund Board with half of the interest earned from the Fund benefit-

ing Next Generation Fund projects and the other half to fund child abuse and neglect prevention

projects (or children’s projects). The Children’s Trust Board will have final approval of all pro-

posals and funding.

Significant Issues

Next Generation Fund projects must provide positive child and youth development activities that

support physical, mental and social well-being; promote strong and health families and help pre-

vent abuse and neglect; promote community service, leadership and citizenship; and provide

community coordination of child and youth development programming.

This bill expands the Children’s Trust Fund mission beyond its current mission focused on child

abuse and neglect prevention. The Children’s Trust Fund was created by state statute in 1978 to

provide the means to develop innovative projects which address issues such as, preventing child

abuse and neglect, providing medical, psychological treatment for victims of abuse and neglect

and develop community based services on child abuse and neglect.

FISCAL IMPLICATIONS

The appropriation of $15 million contained in this bill is a non-recurring expense to the general

fund. Any unexpended or unencumbered balance remaining at the end of FY06 shall not revert to

the general fund.

These funds would leverage state investments to significantly expand the corpus of the Chil-

dren’s Trust Fund (CTF) so more monies can be distributed across the state on an annual basis.

Interest monies generated by the fund will be distributed through a competitive grant process,

targeting 0–24-year-old children and youths, administrated by the Children, Youth and Families

Department and guided by the state-appointed board of the CTF.

ADMINISTRATIVE IMPLICATIONS

No significant administrative impact for CYFD staff.

DUPLICATION

Duplicates SB614

House Bill 892/aHAFC/aSFC Page 3

OTHER SUBSTANTIVE ISSUES

PED says the Next Generation Fund (NGF) will support positive children and youth activities,

which focus on improving the physical, mental and social well being of children and youths.

•

The NGF will be based on principles of positive child and youth development. Funded

programs would view children and youths as assets, seek to create safe places for young

people, provide constructive activities, encourage service-learning and civic engagement

and make connections to academic success and school performance.

•

Competitive awards will support community-identified needs and innovative projects,

which might include special in-school and out-of-school initiatives like family literacy

projects, prevention/intervention projects, after-school programs and community service

and youth leadership.

•

Students who spend no time in extracurricular activities are 49% more likely to use drugs

and 37% are more likely to become teen parents than those who spend one to four hours

per week in extracurricular activities (U.S. Dept. of Education, 2002).

Recent research shows that at the elementary and high school educational levels, high achievers

spent more time in “high yield” out-of-school learning activities than low achievers. ”High

yield” out-of-school learning activities include such diverse activities as reading, writing, study-

ing, being tutored, watching educational TV, playing with computers, going to after-school pro-

grams and clubs, volunteering, doing a hobby and participating in organized sports (Clark,

2002).

BD/lg:yr