NOTE: As provided in LFC policy, this report is intended for use by the standing finance committees of the legislature.  The Legislative Finance Committee does not assume responsibility for the accuracy of the information in this report when used in any other situation.

The LFC is only preparing FIRs on bills referred to the Senate Finance Committee, the Senate Ways and Means Committee, the House Appropriations and Finance Committee and the House Taxation and Revenue Committee. The chief clerks are responsible for preparing and issuing all other bill analyses.

Only the most recent FIR version, excluding attachments, is available on the Intranet. Previously issued FIRs and attachments may be obtained from the LFC office in Room 416 of the State Capitol Building.

(Parenthesis ( ) Indicate Expenditure Decreases)

Duplicates/Conflicts with/Companion to/Relates to

SOURCES OF INFORMATION

Children, Youth and Families Department (CYFD)

SUMMARY

Synopsis of Bill

House Bill 79 appropriates $4,600.0 to increase the reimbursement rates paid to child care providers for eligible families.

Significant Issues

According to CYFD, House Bill 79 would allow child care providers to be reimbursed at a higher rate ( closer to market rate). A 1997 market survey determined that child care assistance benefits were as much as $4.00 per day below the New Mexico market rate. This makes it more difficult for CYFD to find providers willing to accept state-assisted children. A federal mandate under the Child Care and Development Block Grant provides that the state must ensure equal access to quality care for children receiving child care assistance benefits. The department must demonstrate compliance with this requirement.

FISCAL IMPLICATIONS

House Bill 79 appropriates $4,600.0 to CYFD from the general fund and would be recurring.

A budget of $3,000.0 is included in the Executive and LFC budget recommendations.

ADMINISTRATIVE IMPLICATIONS

The administrative infrastructure is already in place within CYFD.

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