Fiscal impact reports (FIRs) are prepared by the Legislative Finance Committee (LFC) for standing finance

committees of the NM Legislature. The LFC does not assume responsibility for the accuracy of these reports

if they are used for other purposes.

Current FIRs (in HTML & Adobe PDF formats) are a vailable on the NM Legislative Website (legis.state.nm.us).

Adobe PDF versions include all attachments, whereas HTML versions may not. Previously issued FIRs and

attachments may be obtained from the LFC in Suite 101 of the State Capitol Building North.

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

SPONSOR King

ORIGINAL DATE

LAST UPDATED

2-6-06

HB 550

SHORT TITLE NEXT GENERATION FUND

SB

ANALYST Lucero

APPROPRIATION (dollars in thousands)

Appropriation

Recurring

or Non-Rec

Fund

Affected

FY06

FY07

$6,000.0 Non-Recurring

General Fund

(Parenthesis ( ) Indicate Expenditure Decreases)

Duplicates SB472,

Relates to Appropriation in the General Appropriation Act

REVENUE (dollars in thousands)

Estimated Revenue

Recurring

or Non-Rec

Fund

Affected

FY06

FY07

FY08

$6,000.0

Non-Recurring Next Generation

Fund

(Parenthesis ( ) Indicate Expenditure Decreases)

SOURCES OF INFORMATION

LFC Files

Responses Received From

Children, Youth and Families Department (CYFD)

Public Education Department (PED)

SUMMARY

Synopsis of Bill

House Bill 550 appropriates $6,000.0 from the general fund to Children, Youth and Families

Department for the purpose of transferring to the next generation fund to promote positive child

House Bill 550 – Page

2

and youth development and prevent the abuse and neglect of children pursuant to the Children’s

Trust Fund Act.

FISCAL IMPLICATIONS

The appropriation of $6,000.0 contained in this bill is a non-recurring expense to the general

fund. The appropriation will be transferred to the next generation fund which is a non-reverting

fund.

SIGNIFICANT ISSUES

The next generation fund (NGF) expanded the Children’s Trust Fund mission beyond its ena-

bling mission which focused on child abuse and neglect prevention. Originally, the Children’s

Trust Fund was created by state statute in 1978 to provide the means to develop innovative pro-

jects which address issues such as, preventing child abuse and neglect, providing medical, psy-

chological treatment for victims of abuse and neglect and develop community based services on

child abuse and neglect.

NGF projects must provide positive child and youth development activities that support physical,

mental and social well-being; promote strong and health families and help prevent abuse and ne-

glect; promote community service, leadership and citizenship; and provide community coordina-

tion of child and youth development programming.

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 Children’s Trust Fund (CTF).

PERFORMANCE IMPLICATIONS

This bill does not affect any current CYFD performance measures. Performance measures for

programs to be funded by the Next Generation Fund have not been established; however national

models have been studied and measures will be developed.

”High yield” out-of-school learning activities and effective instructional strategies may improve

attendance, positively impacting public school performance measures and benchmarks regarding

reading, language arts, math and graduation rates. Additionally, the NGF may positively impact

the Pre-K initiative in terms of student readiness to enter school better prepared to learn.

ADMINISTRATIVE IMPLICATIONS

Up to ten percent of the income received from investment of the NGF may be expended for costs

to administer the fund and next generation projects. Administrative costs include per diem

(members of the CTF board) and mileage, staff salaries and expenses related to administration of

the fund.

CONFLICT, DUPLICATION, COMPANIONSHIP, RELATIONSHIP

Duplicates SB472

House Bill 550 – Page

3

TECHNICAL ISSUES

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).

OTHER SUBSTANTIVE ISSUES

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, preven-

tion/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).

DL/mt