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

SPONSOR Varela

ORIGINAL DATE

LAST UPDATED

1-30-2006

HB 323

SHORT TITLE Computer Clubhouses

SB

ANALYST Dearing

APPROPRIATION (dollars in thousands)

Appropriation

Recurring

or Non-Rec

Fund

Affected

FY06

FY07

$900.0

Recurring

General Fund

(Parenthesis ( ) Indicate Expenditure Decreases)

Relates to SB 351

SB 351 appropriates $100,000 for computer clubhouses, in Bernalillo County.

SOURCES OF INFORMATION

LFC Files

Responses Received From

Public Education Department (PED)

Department of Finance and Administration (DFA)

SUMMARY

Synopsis of Bill

House Bill 323 appropriates $900,000 to the Local Government Division (LGD) of the Depart-

ment of Finance and Administration (DFA) for expenditures in FY 07 to provide staffing and

operational expenses for Computer Clubhouses that give youth access to computer technology

and mentors in Bernalillo, Dona Ana, Sandoval and Santa Fe counties.

In 1999 Intel, the National Museum of Science in Boston Massachusetts, and the Massachusetts

Institute of Technology ( MIT) funded and established approximately 100 Computer Clubhouses

world wide. The intent of the clubhouses was to bridge the technology gap in low income mi-

nority areas and to provide services to children from age six to nineteen. These organizations

partnered with community based organizations--Boys and Girls Clubs, etc., to deliver services

providing computer skills and literacy skills and have established approximately six centers

state-wide.

House Bill 323 – Page

2

FISCAL IMPLICATIONS

The appropriation of $900,000 contained in this bill is a recurring expense to the general fund.

Any unexpended or unencumbered balance remaining at the end of fiscal year 2007 shall revert

to the general fund.

SIGNIFICANT ISSUES

In 1999 Intel, the National Museum of Science in Boston Massachusetts, and the Massachusetts

Institute of Technology ( MIT) funded and established approximately 100 Computer Clubhouses

world wide. The intent of the clubhouses was to bridge the technology gap in low income mi-

nority areas and to provide services to children from age six to nineteen. These organizations

partnered with community based organizations--Boys and Girls Clubs, etc., to deliver services

providing computer skills and literacy skills and have established approximately six centers

state-wide.

In 2003, funding provided by Intel, MIT and the National Museum of Science was terminated.

This was stipulated in the agreement with each community based organization. The agreement

stated that after five years the Computer Clubhouses would have to fund staffing and operating

costs on their own.

Since this time, 90% of the funding has come from legislative appropriations and 10% is ob-

tained through private foundations. However, Intel and the other partners continue to provide

technical support to the Computer Clubhouses.

The level of children serviced by each Computer Clubhouse varies; however, this analysis de-

termined the level of children served per clubhouse varied from 350 to 5500 per year.

The promotion of Science, Technology, Engineering, and Mathematics (STEM) education pro-

grams within New Mexico has recently been high-lighted as an issue that is at the forefront of

the New Mexico Federal Congressional Delegation’s funding and legislative initiatives. This

initiative is a critical effort to promote New Mexico’s development of a technically proficient

state population that is able to compete at both the national and global level in technological

fields. An overall driving force in economic development is a technically educated population.

PERFORMANCE IMPLICATIONS

LGD/DFA will be impacted in a positive manner and this legislation will further enhance pro-

grammatic goals and the departments’ strategic plans.

ADMINISTRATIVE IMPLICATIONS

The administration of appropriation of HB 323 would fall under LGD/DFA in FY 07. The LGD

would coordinate with the local governments receiving funding to develop grant agreements with

those entities as it did in FY 06. Furthermore, LGD currently has sufficient staff to administer

the appropriation.

House Bill 323 – Page

3

WHAT WILL BE THE CONSEQUENCES OF NOT ENACTING THIS BILL

Staffing and operating costs for Computer Clubhouses are currently funded by legislative appro-

priations at 90% of their budget and 10% by private foundations. Eliminating the legislative

funding would drastically reduce the programs services or would eliminate the program com-

pletely.

QUESTIONS

If enacted, how is funding to be distributed among the four applicable counties.

PD/nt