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.

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(Parenthesis ( ) Indicate Revenue Decreases)

Conflicts with SB2; SB95; HB2; and HB301

SOURCES OF INFORMATION

LFC Files

Human Services Department (Department)

SUMMARY

Synopsis of Bill

Senate Bill 360 amends the New Mexico Works Act to limit the housing subsidy to participants qualifying for a minimum cash assistance benefit of one hundred dollars per month.

Significant Issues

It is estimated that fewer than 2,000 cases qualify for a cash assistance check of less than one hundred dollars. The reduction of these cases from the housing subsidy will result in cash payments being reduced by approximately $2.4 million annually. However, because the housing subsidy is paid to participants from the Temporary Assistance for Needy Families (TANF) block grant, which is a fixed amount each year, this bill will not result in any savings. What it will do is allow the funds to be reallocated to other areas such as transportation, child care, or any other program that will help move participants into employment.

FISCAL IMPLICATIONS

The TANF block grant is subject to the Brown Amendment, which gives state legislatures specific authority to appropriate the federal funds. Thus, the reduced federal funds in housing subsidies must be appropriated by the legislature or they will be carried over into the succeeding fiscal year for re-appropriation.

ADMINISTRATIVE IMPLICATIONS

The passage of SB360 will require the Department to remove related programming on the ISD2 computer system, which is responsible for, among other things, calculating cash assistance amounts. The costs of this can be borne by the agency's budget and will not require additional funding.

CONFLICT/DUPLICATION/COMPANIONSHIP/RELATIONSHIP

House Bill 2 funds the housing subsidy for all participants; House Bill 301 appropriates $20.0 million to fund the housing subsidy for all participants; and Senate Bill 95 repeals the housing subsidy.

TECHNICAL ISSUES

Senate Bill 380 grants the full housing subsidy in one section and then limits those who qualify for it in another.

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