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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

02/12/07

HB

SHORT TITLE TANF Funds For Family Formation Goals

SB 487

ANALYST Weber

APPROPRIATION (dollars in thousands)

Appropriation

Recurring

or Non-Rec

Fund

Affected

FY07

FY08

$0.1

Recurring

TANF Federal Block

Grant

See below

(Parenthesis ( ) Indicate Expenditure Decreases)

SOURCES OF INFORMATION

LFC Files

Responses Received From

Human Services Department (HSD)

Children Youth and Families Department (CYFD)

SUMMARY

Synopsis of Bill

Senate Bill 487 requires that starting in Fiscal year 2008 an amount equal to no less than one

percent of the state's temporary assistance for needy families’ program federal block grant (cur-

rently $1.17 million) shall be expended on programs to enhance family formation. Family for-

mation programs shall be provided through pre-kindergarten programs to parents and, where ap-

propriate, children in pre-kindergarten programs and shall

include instruction in:

(1)

relationship, communication and conflict resolution skills;

(2)

financial management training;

(3)

marriage education, marriage skills and marriage mentoring programs;

(4)

parenting skills; and

(5)

divorce reduction programs that teach relationship skills.

The secretary shall adopt rules for family formation programs and report annually through 2010

on family formation programs and funding to the welfare reform oversight committee or other

appropriate legislative interim committee.

Bill No. – Page

2

FISCAL IMPLICATIONS

There is no fiscal impact since the revenue is part of the existing federal TANF block grant. This

bill directs the distribution of the funds.

SIGNIFICANT ISSUES

HSD notes that the Income Support Division (ISD) contracts with New Mexico State University

for $400,000 to provide Strengthening Family and Fatherhood services. SB 487 would add

nearly three times as much funding to family formation efforts in New Mexico, while potentially

reducing funding to other programs.

In FY 2005, the New Mexico Public Education Department (PED) received $4 million from the

TANF block grant for full-day kindergarten. These funds were later replaced with General Fund

money. It is not clear from SB 487 whether PED should receive these funds to provide these

family formation programs.

OTHER SUBSTANTIVE ISSUES

“Earmarking" funds for a specific purpose could limit the ability of the legislature to meet criti-

cal obligations as circumstances change.

MW/yr