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





SPONSOR: Varela DATE TYPED: 02/04/99 HB 42
SHORT TITLE: Navajo Nation Matching Funds SB
ANALYST: Burris


APPROPRIATION



Appropriation Contained
Estimated Additional Impact
 Recurring

or Non-Rec

 Fund

Affected

FY99 FY2000 FY99 FY2000
$ 3,000.0 Recurring General Fund



(Parenthesis ( ) Indicate Expenditure Decreases)



Duplicates HB80



SOURCES OF INFORMATION



LFC Files

Office of Indian Affairs



SUMMARY



Synopsis of Bill



House Bill 42 appropriates $3,000.0 from the general fund to the Human Services Department in FY2000 to contract with the Navajo Nation to operate a separate program under the Temporary Assistance to Needy Families (TANF) program.



Significant Issues



The appropriation is contingent upon the approval of the Navajo family assistance plan. The appropriation will count towards the state's maintenance of effort requirement for the TANF block grant.



OTHER SUBSTANTIVE ISSUES



If the Navajo family assistance plan is approved by the federal Department of Health and Human Services, the amount of the TANF block grant to the state will be reduced by the amount granted to the Navajo Nation. At the same time, however, the population the state will be required to serve under its approved TANF plan will be reduced by the number of participants that will be served by the Navajo plan.



POSSIBLE QUESTIONS



1. What is the proposed TANF service area under the Navajo family assistance plan?



2. Have negotiations with the Human Services Department yielded a definite population to be served by the Navajo family assistance plan?



RLB/njw