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

SPONSOR Berry

ORIGINAL DATE

LAST UPDATED

1/22/08

HB 126

SHORT TITLE Increase Apprenticeship Program Funding

SB

ANALYST Aguilar

APPROPRIATION (dollars in thousands)

Appropriation

Recurring

or Non-Rec

Fund

Affected

FY08

FY09

$2,000.0

Recurring

General Fund

(Parenthesis ( ) Indicate Expenditure Decreases)

Relates to Appropriations in the General Appropriation Act

SOURCES OF INFORMATION

LFC Files

Responses Received From

Public Education Department (PED)

Higher Education Department (HED)

SUMMARY

Synopsis of Bill

House Bill 126 appropriates $2 million from the general fund to the Public Education

Department for the purpose of supporting registered apprenticeship programs through the

Apprenticeship Assistance Act.

FISCAL IMPLICATIONS

Funding for this program of $650.0 is included in the General appropriations Act.

The appropriation of $2 million contained in this bill is a recurring expense to the general fund.

Any unexpended or unencumbered balance remaining at the end of fiscal year 2009 shall revert

to the general fund.

SIGNIFICANT ISSUES

PED administers the Apprenticeship Assistance funds in accordance with legislative

requirements defined within the Act

House Bill 126 – Page

2

Apprenticeship programs are qualified and offer registered apprenticeship training throughout

the state. Examples of registered programs may include, but not be limited to, programs such as

Associated General Contractors, International Union of Elevator Constructors Local 131 JATC,

Northern New Mexico Independent Electrical Contractors, Independent Electrical Contractors of

Southern New Mexico, American Fire Sprinkler Association and Wagner Equipment Company.

Apprenticeship is an informal educational method for training individuals in a skilled trade.

According to PED, in November 2007 there were 1,248 apprentices registered in the State of

New Mexico working at an average hourly wage of $17.92.

This program collaborates closely with Department of Workforce Solutions to ensure policies are

up-to-date and applicable, and to monitor programs to ensure they are complying with

Apprenticeship Assistance Act rules.

The Apprenticeship and Training Advisory Committee consists of the 10 voting members and

four non-voting members as specified in the Act.

PA/mt