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

SPONSOR Trujillo

ORIGINAL DATE

LAST UPDATED

2-4-06

2/11/06 HB 649/aHEC

SHORT TITLE DISADVANTAGED CHILDREN'S ZONE

SB

ANALYST Hadwiger

APPROPRIATION (dollars in thousands)

Appropriation

Recurring

or Non-Rec

Fund

Affected

FY06

FY07

$3,000.0 Non-Recurring

General Fund

(Parenthesis ( ) Indicate Expenditure Decreases)

SOURCES OF INFORMATION

LFC Files

Responses Received From

Department of Finance and Administration (DFA)

Children, Youth and Families Department (CYFD)

Public Education Department (PED)

SUMMARY

Synopsis of HEC Amendment

The HEC amendment to Senate Bill 649 deletes reference to “six kindergarten programs.”

Synopsis of Original Bill

Senate Bill 649 appropriates $3 million from the general fund to the Local Government Division

(LGD) of the Department of Finance and Administration (DFA) in FY07 for development of the

Agua Fria children's zone, a cooperative economic development program and its administrative

offices, with a goal of strengthening disadvantaged children and six pre-kindergarten programs

in a disadvantaged Santa Fe neighborhood.

FISCAL IMPLICATIONS

The appropriation of $3 million contained in this bill is a non-recurring expense to the general

fund. Any unexpended or unencumbered balance remaining at the end of FY07 would revert to

the general fund.

House Bill 649/aHEC – Page

2

SIGNIFICANT ISSUES

DFA indicates HB649 would fund design, construction and furnishing a building on Bureau of

Land Management land for which the Santa Fe County has a 99-year lease. This building is part

of the county master plan for the Agua Fria area. The building will become part of a community

development program for this area of town. The intention for this building is to be a community

center as well as a campus for the six pre-kindergarten classrooms. The building would also in-

clude community classrooms available for conferences for early childhood development, parent-

ing classes, and adult literacy programs. The building will include administrative office space

for staff for the economic development in this community. A medical clinic, ball park, play

grounds and a fire station are already located near this proposed building site.

DFA added that currently, the Agua Fria children's zone operates two pre-kindergarten classes at

the Agua Fria elementary school. The school's population is growing rapidly and soon the pre-

kindergarten classes will no longer have classroom space available at this location. This building

will give the program a permanent home. The census bureau data of 2000 states that there are

639 children under the age of 5 in the Agua Fria area. The United Way of Santa Fe holds a lot-

tery for the children who are able to attend the two classrooms currently in operation. The num-

ber of children turned away suggests the need to expand to as many as six pre-kindergarten

classes.

PED commented that Agua Fria Children's Zone (AFCZ) is a revised and expanded program

based on the work of United Way of Santa Fe County's Success by Six Advisory Council - work

that received an Early Learning Opportunities Act grant in 2003. AFCZ is modeled after the

Harlem Children's Zone Project, a multi-year comprehensive community building initiative that

works to enhance the quality of life for children and families in some of New York City's most

devastated neighborhoods. AFCZ is a comprehensive project to address root causes of disen-

franchisement in one of Santa Fe's most vulnerable neighborhoods and to reverse the downward

spiral of generational poverty often found in such neighborhoods. Making the family its focus,

AFCZ creates a continuum of resources and services following children and their families from

birth to early childhood - a network of opportunities routinely available to more advantaged citi-

zens.

PED added that AFCZ's primary goal for the early-childhood phase of the Agua Fria Children's

Zone is that all Agua Fria children enter kindergarten fully prepared with the social/emotional,

cognitive and motor-development skills they need to flourish. The Agua Fria Children’s Zone

works to create opportunities and enhance the quality of life for children and families in one of

Santa Fe County’s most vulnerable neighborhoods by providing needed services and support.

The initiative began in 2004 with Agua Fria Preschool, a private-public pre-kindergarten pro-

gram that offers the high-quality early-childhood education shown to have a positive impact on

low-income children and their families. Investing in early childhood development and education

results in better school performance, less criminal behavior, reduced dependence on welfare and

higher-paying jobs as adults. At the same time, engaging a community around its children im-

proves the chances of sustainable success.

House Bill 649/aHEC – Page

3

PERFORMANCE IMPLICATIONS

CYFD noted that the bill references “a goal of strengthening disadvantaged children and six pre-

kindergarten programs in a disadvantaged Santa Fe neighborhood.” If the intent of the appro-

priation is to fund or supplement direct pre-k services, then pre-k program performance indica-

tors would be positively impacted. If the intent of the appropriation is to fund or supplement de-

velopment of pre-k programs, then the number, capacity, and accessibility of programs and the

number of children served would be positively impacted.

ADMINISTRATIVE IMPLICATIONS

DFA indicates the bill proposes that LGD/DFA administer the funds for a capital outlay project

in the Agua Fria area of Santa Fe county, which is within the parameters of the department to do.

CYFD indicated DFA is not currently directly involved in the administration of the New Mexico

pre-k program. CYFD will absorb any additional administrative impact associated with passage

of this bill.

DH/nt