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.

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(Parenthesis ( ) Indicate Expenditure Decreases)

Duplicates/Conflicts with/Companion to/Relates to

SOURCES OF INFORMATION

Children, Youth and Families Department (CYFD)

SUMMARY

Synopsis of Bill

Senate Bill 161 contains $4,600.0 to CYFD to increase reimbursement rates paid to child care providers for eligible families.

Significant Issues

Senate Bill 161 would provide a higher rate of reimbursement and closer to market rate to child care providers. 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 difficult for CYFD to find providers willing to accept state-assisted children.

FISCAL IMPLICATIONS

The bill appropriates $4,600.0 to CYFD and is recurring. Both the Executive and Legislative budgets include $3 million to increase the reimbursement rates, this would fund 65 percent of the difference between CYFD current reimbursement rates and the market rates determined in the survey.

ADMINISTRATIVE IMPLICATIONS

CYFD already administers this program.

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