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

SPONSOR Vigil

ORIGINAL DATE

LAST UPDATED

01/28/08

HJM 23

SHORT TITLE Assistance for Grandparents Raising Children

SB

ANALYST Weber

ESTIMATED ADDITIONAL OPERATING BUDGET IMPACT (dollars in thousands)

FY08

FY09

FY10 3 Year

Total Cost

Recurring

or Non-Rec

Fund

Affected

Total

$110.0

$110.0

Non-

Recurring General

Fund

(Parenthesis ( ) Indicate Expenditure Decreases)

SOURCES OF INFORMATION

LFC Files

Responses Received From

Human Services Department (HSD)

Children Youth and Families (CYFD)

SUMMARY

Synopsis of Bill

House Joint Memorial 23 asks the secretary of Human Services to convene a task force that

includes representatives from the Children, Youth and Families Department to study the

availability of public assistance to grandparents who are raising their grandchildren and, if

currently there is no public assistance, to examine how to provide assistance to those

grandparents who are in need. The results are to be reported to the appropriate interim

legislative committee during the 2008 interim including recommendations for providing

assistance to grandparents in need.

FISCAL IMPLICATIONS

HSD estimates a cost of $110 thousand from the general fund to complete the study. Also HSD

notes that under the Federal Deficit Reduction Act of 2005 grandparents who are included in the

benefit group are also included in the TANF participation rate. Situations where the

grandparents are exempt under the NMW Act 27-2B NMSA 1978 from participation will have a

negative impact on the participation rate. The TANF block grant will face sanctions for failure

to meet work participation rates. The sanction for the All Families Participation Rate is up to 5%

(estimated $3,917,935) of the TANF adjusted State Financial Assistance Grant (SFAG) for

failure to meet the “all families" participation rate. The penalty will also require an increase in

the rate of MOE spending to 80% ($2,183,220) for failing to meet new federal performance

House Joint Memorial 23 – Page

2

measures. Penalties increase by 2% each year that performance measures are not met and are

capped at 21% adjusted SFAG.

SIGNIFICANT ISSUES

HSD comments on the issue.

Data from the 2000 Census provides that in New Mexico 22,974 grandparents are caring for their

own grandchildren. Excluding the grandparents income, 44,014 children identified through the

2000 Census could potentially become eligible for public assistance. Based on this data the

NMW, EWP, Food Stamp and Medicaid cases could double.

Children Youth and Families adds.

The number of grandparents who are either directly involved in the raising of their grandchildren

or are entirely responsible for this task has increased recently. Such household arrangements are

usually the result of family crises, including financial, that place these children at risk for

negative outcomes, including the possibility of academic hardship, poverty, child abuse, or

neglect. Public policy is still working to catch up with this new development, and a safety net

including the availability of public assistance to these multi-generational households has not yet

been fully developed. A study that identifies the availability of public assistance or, in the

absence of that assistance identifies how to develop and provide the assistance, will help to

establish a safety net. Access to public assistance would enhance the ability of caretaker

grandparents to properly care for their grandchildren, and improve the children's outcomes.

Currently, grandparents who have custody of their grandchildren and are enrolled in the

childcare assistance program are exempted from making co-payments to childcare providers.

MW/bb