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

SPONSOR Boitano

ORIGINAL DATE

LAST UPDATED

02/06/06

HB

SHORT TITLE

FEDERAL FUNDS FOR FAMILY

FORMATION

SB 741

ANALYST Weber

APPROPRIATION (dollars in thousands)

Appropriation

Recurring

or Non-Rec

Fund

Affected

FY06

FY07

None

(Parenthesis ( ) Indicate Expenditure Decreases)

Relates to Appropriation in the General Appropriation Act

SOURCES OF INFORMATION

LFC Files

Responses Received From

Human Services Department (HSD)

SUMMARY

Synopsis of Bill

Senate Bill 741 requires that the New Mexico Works Act be amended to include marriage and

fatherhood initiatives as one of its goals. The programs are to include the following:

(1) marriage skills training for engaged and married couples;

(2) premarital education;

(3) marriage enhancement;

(4) divorce reduction;

(5) marriage mentoring;

(6) reducing disincentives to marriage in programs that require proof of income; and

(7) responsible fatherhood in a voluntary program approved by the secretary.

In addition, it requires that in FY 2007 and each subsequent fiscal year, at least one percent (1%)

of the annual Federal block grant for Temporary Assistance for Needy Families (TANF) be

expended on programs for these purposes.

Senate Bill 741 – Page 2

The HSD Cabinet Secretary is to promulgate rules for the responsible fatherhood programs, and

the HSD Cabinet Secretary is also to report annually through 2010 on family formation programs

and funding to the Welfare Reform Oversight Committee.

FISCAL IMPLICATIONS

HSD currently contracts with the Cooperative Extension Service at New Mexico State University

for $400,000 TANF funding in FY 2006 to provide Strengthening Family and Fatherhood

services. The proposed expenditure of at least 1% of the TANF block grant totals $1.17 million

at the current funding level.

SIGNIFICANT ISSUES

HSD comments that the purposes in the bill conform to one of the Congressional purposes for

the TANF block grant (promoting marriage in the interests of children, and responsible

fatherhood and motherhood). However, in order to fund a family formation program at least 1%

of the entire TANF block could impact the state’s effort toward other TANF goals of providing

assistance to needy families and ending the dependence of needy parents on public assistance by

promoting job preparation and work. A statutory requirement to expend a minimum amount

annually for one particular purpose may hamper the efforts in other high priority areas as needs

shift to meet the particular requirements of the current caseload. Examples of areas that may be

constricted include childcare, domestic violence services, transportation, employment, and case

management services needed to meet Federal performance measures.

At the national level, the Budget Reconciliation Act makes available marriage and fatherhood

grants of $150 million for Fiscal Years 2006-2010. States would not be required to use the

regular TANF grant for marriage and fatherhood initiatives; rather they may compete for

marriage and fatherhood grants to fund these programs. Under the proposed law, expected to be

signed by the President, state funds used for marriage and fatherhood programs may be counted

towards TANF Maintenance of Effort (MOE) possibly without regard to TANF eligible status

(i.e. family and income eligibility under 100% of poverty).

MW/nt