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

SPONSOR Campos

DATE TYPED 3/16/05

HB

SHORT TITLE Development Training Fund Selection Criteria

SJM 4

ANALYST Rosen

APPROPRIATION

Appropriation Contained Estimated Additional Impact Recurring

or Non-Rec

Fund

Affected

FY05

FY06

FY05

FY06

NFI

NFI

(Parenthesis ( ) Indicate Expenditure Decreases)

SOURCES OF INFORMATION

Economic Development Department (EDD)

Division of Vocational Rehabilitation (DVR)

SUMMARY

Synopsis of Bill

Senate Joint Memorial 4 requests the Industrial Training Board to use certain selection criteria

for expenditure of development training funds for classroom and in-plant training that provides

qualified manpower resources for new or expanding industries in New Mexico. The selection

criteria includes: 1) the complexity of skills needed by the company; 2) whether the company

proposes to target hard-to-employ persons; 3) the wages and benefits of trainees and other com-

pany employees; 4) the proposed number of trainees and the total number of jobs made available

by the company; 5) employee promotion history and retention rates of trainees and other em-

ployees of the company; 6) unemployment rates of the area from which trainees and employees

will most likely be hired; 7) past financial performance of the company; 8) the community ser-

vice history of the company; and 9) other selection criteria the board deems important to eco-

nomic development and the quality of life of the area.

Significant Issues

According to EDD, The Industrial Training Board already utilizes a similar selection criterion

which is outlined in its Policy Manual.

According to DVR, if people with disabilities are not recognized as a targeted population for in-

plant training they will not be able to contribute to the overall economic development of the

state, increase their independence and reduce their need for disability related public assistance

and services.

JR/lg