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

SPONSOR Sanchez, B.

ORIGINAL DATE

LAST UPDATED

1/26/08

HB

SHORT TITLE Create Apprenticeship Training Fund

SB 263

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 Appropriation in the General Appropriation Act for Apprenticeship Assistance

Relates to HB-126

REVENUE (dollars in thousands)

Estimated Revenue

Recurring

or Non-Rec

Fund

Affected

FY08

FY09

FY10

$2,000.0

$0.1 Recurring Apprenticeship

Training Fund

(Parenthesis ( ) Indicate Revenue Decreases)

SOURCES OF INFORMATION

LFC Files

Responses Received From

Public Education Department (PED)

SUMMARY

Synopsis of Bill

Senate Bill 263 appropriates $2 million from the general fund to Apprenticeship Training Fund

to provide grants for apprenticeship training programs.

The bill creates the Apprenticeship Training Fund as a nonreverting fund.

Senate Bill 263 – Page

2

FISCAL IMPLICATIONS

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 shall revert to the

general fund.

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

The bill makes technical changes to language in existing statute.

The bill provides a definition for an apprenticeship training program as it is registered pursuant

to Section 21-19A-5 NMSA 1978 and defines the criteria for apprenticeship programs.

Apprenticeship programs should be registered by the state apprenticeship council or the U.S.

Department of Labor.

The bill also provides for investment of the fund in the manner the land grant permanent fund is

invested.

PERFORMANCE IMPLICATIONS

This bill does not specifically address the PED performance measures. However, it does support

PED’s goal to increase academic excellence and student achievement. Additionally, CTE

provides relevance to a curriculum and hands-on instruction that may impact the annual cohort

graduation rate for ninth graders who entered school year 2004-2005.

TECHNICAL ISSUES

For consistency in language use, the Legislature may wish to consider changing references to the

division to the department.

PA/bb