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

SPONSOR Lopez

ORIGINAL DATE

LAST UPDATED

1/21/08

HB

SHORT TITLE CYFD Child Care Program Eligibility

SB 188

ANALYST Lucero

APPROPRIATION (dollars in thousands)

Appropriation

Recurring

or Non-Rec

Fund

Affected

FY08

FY09

0.00

$3,800.0

Recurring

General Fund

(Parenthesis ( ) Indicate Expenditure Decreases)

Duplicates HB162 “CYFD Child Care Programs" and Relates to: HB222 “CYFD Child Care

Programs"

Relates to Appropriation in the General Appropriation Act

ESTIMATED ADDITIONAL OPERATING BUDGET IMPACT (dollars in thousands)

FY08

FY09

FY10 3 Year

Total Cost

Recurring

or Non-Rec

Fund

Affected

Total

$64.4

$64.4

$128.8 recurring General

fund

(Parenthesis ( ) Indicate Expenditure Decreases)

SOURCES OF INFORMATION

LFC Files

Responses Received From

Children, Youth and Families Department (CYFD)

SUMMARY

Synopsis of Bill

Senate Bill 188 appropriates three million eight hundred thousand dollars (3,800,000) from the

general fund to Children, Youth and Families Department to increase eligibility for the child care

program and increase provider rates. The bill specifies two million eight hundred thousand

($2,800,000) is to expand eligibility for child care programs to two hundred percent of the

federal poverty level (FPL) and one million ($1,000,000) is to increase the reimbursement rate

for licensed child care providers.

Senate Bill 188 – Page

2

FISCAL IMPLICATIONS

The appropriation of three million eight hundred thousand dollars (3,800,000) contained in this

bill is a recurring expense to the general fund. Any unexpended or unencumbered balance

remaining at the end of 2009 shall revert to the general fund.

This appropriation is not included in the executive recommendation for CYFD.

SIGNIFICANT ISSUES

Currently, CYFD assists working families earning up to 165 percent of the federal poverty level

(FPL) by helping them pay for the high cost of quality child care through full or partial payments

(offset by co-payments) to providers chosen by the family. Assistance is based primarily on the

income of working families, the hours that parents are involved in work or an approved training

or education experience, and the amount of child care needed.

CYFD projects $2.8 million could serve 882 new clients by increasing eligibility from 165

percent to 200 percent of FPL in FY09. Approximately $6.2 million would be required in FY10

to remain at 200% FPL without running waiting lists. The increase in FY10 over the FY09

estimated cost is the direct result of the program “ramping up" to serve additional families who

would be eligible for child care at 200 percent of the FPL, and then continuing to serve these

families in FY10.

Funding for expanded eligibility and increasing the reimbursement rate for licensed child care

providers was not included in the executive recommendation for CYFD.

PERFORMANCE IMPLICATIONS

CYFD maintains performance measures focusing on the number of children served through the

child care assistance program as well as measures focusing on the quality of child care received

by subsidized children.

A significant barrier to entering the workforce is childcare. The Workforce Solutions

Department is charged with placing displaced workers back in the workforce. This bill does not

address an increased level of employment, job retention, educational attainment, etc associated

with the additional slots for the parents.

ADMINISTRATIVE IMPLICATIONS

An increase in funding for childcare assistance to two hundred percent of the federal poverty

level would require two additional eligibility interviewers at an estimated annual cost of

$128,800. Funding for these additional staff is not contained in this bill.

CONFLICT, DUPLICATION, COMPANIONSHIP, RELATIONSHIP

Duplicates HB162 “CYFD Child Care Programs" and Relates to: HB222 “CYFD Child Care

Programs"

Relates to Appropriation in the General Appropriation Act.

Senate Bill 188 – Page

3

OTHER SUBSTANTIVE ISSUES

The average annual cost of a childcare slot in New Mexico is $3,663.00 (CYFD Childcare Road

Map August 2007)

Poor Families in the State

•

More than 2 in 10 children are poor in this state. (Children’s Defense Fund, January

2003)

•

87,959 (13%) households in New Mexico make less than $10,000 annually, compared to

9% nationally. (HPC Quick Facts 2005)

•

19% of New Mexicans are poor of which 25% are children under 18

•

36% are families with female head of household with no husband present (US Census

2003 Data Profiles)

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