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





SPONSOR: Kidd DATE TYPED: 2/22/99 HB
SHORT TITLE: Adult Literacy Services SB 375
ANALYST: Hadwiger


APPROPRIATION



Appropriation Contained
Estimated Additional Impact
Recurring

or Non-Rec

Fund

Affected

FY99 FY2000 FY99 FY2000
$ 250.0 Rec. GF



(Parenthesis ( ) Indicate Expenditure Decreases)



Relates to HB88, SB113.



SOURCES OF INFORMATION



LFC Files

State Department of Education

No comments were received from the Office of Cultural Affairs





SUMMARY



Synopsis of Bill



The bill would appropriate $250.0 general fund in FY2000 to the library division of the office of cultural affairs (OCA) to contract with a statewide nonprofit adult literacy organization to provide basic literacy services in areas underserved by existing adult basic education and literacy programs. The appropriation is designated for program management and operating support for community-based literacy programs using volunteer tutors to deliver services in two primary areas: 1) post-employment literacy services and job skills training for participants in local welfare-to-work initiatives and 2) basic health education services designed to improve knowledge of health care issues and access to health care for adult populations with low literacy skills. Technical support to these programs would include training on evaluation standards and techniques, the best practices in the delivery of literacy services, board development and training, volunteer recruitment and support and financial and program management. Unexpended balances would revert to the general fund at the end of FY2000.





Significant Issues



This funding would likely be directed to the New Mexico Coalition for Literacy, which currently receives $400.0 general fund each year in the budget of the Library Division of the OCA. These funds are included in the FY2000 budgets currently being finalized by the House Appropriations and Finance and Senate Finance Committees. In FY96, the Coalition supported almost 900 literacy tutors to assist over 3,000 individuals. The proposed bill apparently expands these services, particularly into the welfare-to-work arena and to provide a new focus on basic health education services.



It is not clear why the welfare-to-work component of this bill is being funded with general fund or through OCA. Contractors for the Temporary Assistance to Needy Families (TANF) program should provide literacy services to their clients as it is an allowable work activity under the New Mexico Works Act. Also, when the welfare-to-work program is implemented, a literacy component should be included in that program which might be used to fund the Coalition or similar programs.



According to SDE, the Coalition's literacy program serves a critical need in the state by providing literacy services to the hardest to serve adults in rural areas of the state. As many as 300,000 adults in New Mexico lack a high school education. With 25,000 welfare-to-work participants, adult basic education and literacy programs are desperately needed. The existing programs cannot meet the needs of the state.



ADMINISTRATIVE IMPLICATIONS



There should be minimal administrative impact from this bill, as the OCA has an ongoing contractual relationship with the Coalition for adult literacy services.



DH/gm