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

SPONSOR Balderas

ORIGINAL DATE

LAST UPDATED

2-6-2006

HB 863

SHORT TITLE Mora County Workforce Training

SB

ANALYST Dearing

APPROPRIATION (dollars in thousands)

Appropriation

Recurring

or Non-Rec

Fund

Affected

FY06

FY07

$100.0

Recurring

General Fund

(Parenthesis ( ) Indicate Expenditure Decreases)

SOURCES OF INFORMATION

LFC Files

Responses Received From

Office of Workforce Training & Development (OWTD)

New Mexico Economic Development Department (NMEDD)

SUMMARY

Synopsis of Bill

House Bill 863 appropriates One Hundred-Thousand Dollars from the general fund to New Mex-

ico Economic Development Department for the purpose of workforce development training pro-

grams to Mora County residents for jobs within the manufacturing industry.

FISCAL IMPLICATIONS

The appropriation of One Hundred-Thousand Dollars 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

This legislation would support economic development efforts of this region. For example, La

Jicarita Enterprise Community is in the process of developing a Natural Resources Business In-

cubator, with a primary focus of small diameter wood products. This business incubator is open

to placing other manufacturing businesses on-site.

House Bill 863 – Page

2

This legislation appears to do provide the same service as the Job Training Incentive Program

(JTIP) that is administered through the New Mexico Economic Development Department

(NMEDD).

The Workforce Training Act was passed during the 2003 Regular Session. The Workforce

Training Act provides funding for customized workforce training at community colleges. Non-

credit customized training is not included in the educational funding formula. During the first

two years of implementation, FY 04 and FY05 $600,000 a year was appropriated for this use.

Last fiscal year, FY 06, the program did not receive an appropriation.

This statewide program is successful in providing customized training to businesses. This is im-

portant in many ways. It develops the workforce, it assists the Economic Development Depart-

ment in recruiting businesses to the state, and it provides a partnership between local businesses

and the educational institutions.

PERFORMANCE IMPLICATIONS

Please see administrative implications.

ADMINISTRATIVE IMPLICATIONS

According to New Mexico Economic Development Department, there is no additional cost to the

agency if passage of this legislation.

CONFLICT, DUPLICATION, COMPANIONSHIP, RELATIONSHIP

There is related legislation, SB 416 and HB 402, to fund eligible community colleges for non-

credit, high skills training.

WHAT WILL BE THE CONSEQUENCES OF NOT ENACTING THIS BILL

If this legislation is not enacted, the residents of Mora County will lose an opportunity to start

and grow their general workforce in the manufacturing sector. Economic development from this

initiative will not occur.

PD/yr