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F I S C A L I M P A C T R E P O R T
SPONSOR Beam
DATE TYPED 2/28/05
HB 1007
SHORT TITLE Second Semester for Education Works Program
SB
ANALYST Weber
APPROPRIATION
Appropriation Contained Estimated Additional Impact Recurring
or Non-Rec
Fund
Affected
FY05
FY06
FY05
FY06
NFI
(Parenthesis ( ) Indicate Expenditure Decreases)
Duplicates SB691
Relates to Appropriation in the General Appropriation Act
SOURCES OF INFORMATION
LFC Files
Responses Received From
Human Services Department (HSD)
SUMMARY
Synopsis of Bill
House Bill 1007 amends a section of the Education Works Act, Section 27-2D-4 E, NMSA 1978
(being Laws 2003, Chapter 317, section 4), changing the time limit for participation in the
Education Works Program. Current statute limits participation in the program for no more than
twenty-four months, except that a recipient may participate in the Education Works Program for
one additional term following the twenty-four month limit if doing so will result in the recipient
earning a degree. New language would a allow for a recipient to participate for two additional
academic terms following the twenty-four month limit if doing so will result in a degree and at
the discretion of the Director.
Significant Issues
The following is contributed by the Human Services Department.
HB 1007 does not include any appropriation for the Education Works Program for allowing for
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House Bill 1007 -- Page 2
participation beyond the twenty-four month limit. Since there are no additional funds for the
program, recipients participating beyond twenty-four months may limit the number of slots
available for new participants into the program that is currently set at 500 statewide.
The proposed language indicates a second term is based on the recipient earning a degree and at
the discretion of the director, which in the definitions section of the act is the Director of the
Income Support Division. The conditions for discretion are not defined, which allows for varied
reasons to limit participation two additional terms beyond the twenty-four month period such as
fiscal, high participation of new enrollments into the Program, and other reasons determined
appropriate by the Director.
Currently, there are 500 slots available for the Education Works Program at an annual FY $2
million budget. During State Fiscal Year FY04, there was a monthly participant average of 450
participants in the program with a FY expenditure of $1,874,132.
Preliminary data from the Human Services Department work program contractors indicates that
during state FY04 there were 43 graduation degrees obtained by participants in the program.
Approximately 63% of participants have obtained employment with an average annual income of
$22,522.
Individuals who meet eligibility criteria may also participate in secondary vocational education
in the New Mexico Works Program in accordance with New Mexico Works Act, Section 27-
2B-5, NMSA 1978 (being Laws 1998, Chapter 8), which limits education as a primary work
activity to no more than 12 months and allows education as a secondary activity without
restriction.
FISCAL IMPLICATIONS
With the annual current budget set by an appropriation of temporary assistance for needy
families funds, the amount available for this program is fixed. Extension of the time limit for
participation may limit the availability of new positions for the program. As suggested by HSD
the current annual spending is near the annual appropriation making this scenario possible. Only
state maintenance of effort funds are available for this program as federal funds are not allowed
by TANF regulation.
MW/yr