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

SPONSOR Lopez

ORIGINAL DATE

LAST UPDATED

1-31-06

HB

SHORT TITLE

BERNALILLO G.E.D. & WORKFORCE

PROGRAMS

SB 392

ANALYST Hadwiger

APPROPRIATION (dollars in thousands)

Appropriation

Recurring

or Non-Rec

Fund

Affected

FY06

FY07

$60.0

Recurring

General Fund

(Parenthesis ( ) Indicate Expenditure Decreases)

Relates to HB423, SB408, and SB350.

SOURCES OF INFORMATION

LFC Files

Responses Received From

Office of Workforce Training and Development (OWTD)

Department of Finance and Administration (DFA)

Department of Labor (DOL)

SUMMARY

Synopsis of Bill

Senate Bill 392 appropriates $60 thousand from the general fund to the Local Government Divi-

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

County to provide general equivalency diploma programs and workforce training for young

adults.

FISCAL IMPLICATIONS

The appropriation of $60 thousand contained in this bill is a recurring expense to the general

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

the general fund.

Senate Bill 392 – Page 2

SIGNIFICANT ISSUES

DFA noted that the one critical factor that makes a difference in a person’s paycheck is educa-

tion. The State of New Mexico's Quality of Life report identifies workforce development

through education and training as one of the action strategies vital to the future of the state. Edu-

cation in all forms is a key to both individual and community success. According to the New

Mexico Coalition for Literacy, 20 percent of New Mexicans age 16 and older have literacy skills

at the lowest level. And according to a survey by the Milken Institute, 46 percent of the state's

population is rated at a literacy level that makes nearly two-thirds of jobs unavailable to them.

The School Drop Out Rate for grades 9 to 12 in Bernalillo County is 10.9% as compared with a

state wide Drop Out Rate of 7.6 percent. And, according the Public Education Department, for

school year 2004-2005, only 84.08 percent of Bernalillo County High School students graduated.

DOL indicated the Workforce Investment Act administered through the Office of Workforce

Training and Development provides for similar activities for youth and young adults. OWTD

suggested that, if funds in this bill were passed through OWTD, they would be directed to the

local boards to provide the service at the One Stop Centers. Performance and measurement stan-

dards would apply to output.

ADMINISTRATIVE IMPLICATIONS

Little impact is anticipated for DFA to administer these funds.

CONFLICT, DUPLICATION, COMPANIONSHIP, RELATIONSHIP

Relates to HB423, SB408, and SB350.

ALTERNATIVES

Both DOL and OWTD anticipated the program might be more effective if integrated into exist-

ing OWTD programs.

DH/nt