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.

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

SPONSOR Wallace

ORIGINAL DATE

LAST UPDATED

1-19-07

2/21/07 HB 21/aHAFC

SHORT TITLE Juvenile Continuum Grant Fund

SB

ANALYST Lucero

REVENUE (dollars in thousands)

Estimated Revenue

Recurring

or Non-Rec

Fund

Affected

FY07

FY08

FY09

NFI

NFI

NFI

NFI

(Parenthesis ( ) Indicate Revenue Decreases)

Relates to Appropriation in the General Appropriation Act. The LFC recommendation for the

GAA contains an appropriation of $2,000.0 for the Juvenile Continuum Grant Fund.

SOURCES OF INFORMATION

LFC Files

Responses Received From

Children, Youth and Families Department (CYFD)

SUMMARY

Synopsis of HAFC Amendment

House Appropriation Finance Ccommittee amendment to House Bill 21 deletes the appropriation

of two million ($2,000,000). The amendment also replaces the continuing appropriation

language with language making the newly created fund subject to appropriation by the

legislature. This resolves the LFC concern with including continuing appropriation language in

statutory provisions for newly created funds, as earmarking reduces the ability of the legislature

to establish spending priorities.

Synopsis of Original Bill

This bill repeals the regional services act, creates a non-reverting juvenile continuum grant fund;

and provides for the transfer of funds to the juvenile continuum grant fund. This bill

appropriates two million dollars ($2,000,000) from the general fund to the juvenile continuum

grant fund for expenditure in FY 08 and subsequent fiscal years to expand grant assistance to

juvenile justice continuums throughout the state. The effective date of this provision is July 1,

2007.

House Bill 21/aHAFC – Page

2

House Bill 21 appropriates two million dollars ($2,000,000) from the general fund to Children,

Youth and Families Department for transfer to the juvenile continuum grant fund for juvenile

justice continuums throughout the state.

FISCAL IMPLICATIONS

The appropriation of two million dollars ($2,000,000) contained in this bill is a recurring expense

to the general fund. This bill grants appropriation authority to Children, Youth and Families

Department. Any unexpended or unencumbered balance remaining at the end of 2008 shall not

revert to the general fund.

Continuing Appropriations language

This bill creates a new fund and provides for continuing appropriations. The LFC has concerns

with including continuing appropriation language in the statutory provisions for newly created

funds, as earmarking reduces the ability of the legislature to establish spending priorities.

SIGNIFICANT ISSUES

This Act is creating a non-reverting fund in the state treasury to be administered by the Children,

Youth and Families Department and shall consist of appropriations, gifts, grants, donations and

bequests made to the fund. These funds will be used for awarding grants to juvenile justice

continuums for the provision of cost-effective services and temporary, non-secure alternatives to

detention for juveniles arrested or referred to juvenile probation and parole or at a risk of such

referral.

PERFORMANCE IMPLICATIONS

There are no specific improved levels of performance or outcomes mentioned in the bill.

ADMINISTRATIVE IMPLICATIONS

The Children, Youth and Families Department shall adopt rules on qualifications for grants and

specify the format, procedure and deadlines for grant applications. The juvenile justice advisory

committee shall review all grant applications recommend for final approval to the secretary of

Children, Youth and Families. If passed, the bill will have an administrative impact on the

Children, Youth and Families Department that the bill does not address.

CONFLICT, DUPLICATION, COMPANIONSHIP, RELATIONSHIP

The LFC GAA recommendation for the Children, Youth and Families Department contains two

million dollars ($2,000,000) of recurring general fund appropriations for transfer to the juvenile

continuum grant fund for statewide juvenile justice continuums.

TECHNICAL ISSUES

The bill creates a non-reverting fund in the state treasury but does not specify how the funds may

be invested. The bill should specify the type of risk the fund can be exposed to.

OTHER SUBSTANTIVE ISSUES

This bill grants appropriation authority to the Children, Youth and Families Department over the

new fund. The LFC strongly discourages the granting of appropriation authority as it limits the

legislature’s authority.

House Bill 21/aHAFC – Page

3

WHAT WILL BE THE CONSEQUENCES OF NOT ENACTING THIS BILL

Status Quo

DL/csd