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 House Bill 93, and Senate Bills 2 and 75

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SOURCES OF INFORMATION

LFC Files

Commission on Higher Education

Human Services Department analysis not provided

SUMMARY

Synopsis of SPAC Amendment

The Senate Public Affairs Committee amended SB175 to strike the $2,000.0 appropriation and the language creating the Education Works fund. Also included in the amendment is language limiting program participation to two years.

Synopsis of Bill

Senate Bill 175 creates the Education Works Act (Act) and appropriates $2.0 million from the general fund to the newly created education works fund to provide cash assistance and services for participants. The appropriation is non-reverting and will count as maintenance of effort for the federal Temporary Assistance to Needy Families (TANF) block grant. Senate Bill 175 contains an emergency clause so the program may be started immediately.

Senate Bill 175 mirrors many aspects of the New Mexico Works Act (NMWA)-eligibility requirements and restrictions, financial standards of need, application processes, etc. This is purposefully done in order to provide a new service to participants of the NMWA not currently offered.

Because the NMWA requires participants to begin working as soon as they are determined work ready, education opportunities are limited. Senate Bill 175 will allow participants to continue to receive cash assistance and be exempted from the TANF work requirements. This further means participants' five-year clock under TANF will be stopped while they are participating in the Education Works program.

Significant Issues

Senate Bill 175 will provide the means for up to 400 participants to pursue a higher education degree to enhance the possibilities of them finding self-sustaining, full-time employment.

The Act requires participants to apply for financial aid and to spend a minimum of 20 hours per week in class, studying, working or volunteering for the first two years of their program. Furthermore, if the participant does not attend summer school, he or she must work at least 20 hours a week in paid employment.

FISCAL IMPLICATIONS

Senate Bill 175 duplicates funding in Senate Bill 2 for the same program. Senate Bill 2, however, does not create the Education Works Fund, nor the Education Works Act. It simply appropriates $2.0 million to the Human Services Department to implement the same program. The appropriation is contingent upon the Enactment of SB 175 or similar legislation.

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