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.
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 Suite 101 of the State Capitol Building North.
| SPONSOR: | Sanchez, R.G. | DATE TYPED: | 01/27/00 | HB | 246 | ||
| SHORT TITLE: | In-Plant Training | SB | |||||
| ANALYST: | Woodlee | ||||||
| Recurring
or Non-Rec |
Fund
Affected | ||||
| FY00 | FY01 | FY00 | FY01 | ||
| $ 6,000.0 | Recurring | General Fund | |||
(Parenthesis ( ) Indicate Expenditure Decreases)
Relates to HB 2 and SB 2
SOURCES OF INFORMATION
Economic Development Department (EDD)
LFC Files
SUMMARY
Synopsis of Bill
House Bill 246 appropriates funds to the development training fund for the Industrial Development Training program administered by the Economic Development Department.
Significant Issues
The Industrial Development Training program is one that assists new or expanding businesses by providing funding to train New Mexico residents for full-time employment. The Industrial Development Training Board awards matching funds to firms who qualify for the in-plant program. Recently the board altered its policies to provide greater incentive to firms locating in rural areas. Rural companies may receive up to 90% of training costs reimbursed. Urban firms may receive a 50% reimbursement.
The Industrial Development Training program is located in the Economic Development Division, one of the first-year implementation agency of the Accountability in Government Act. The agency, with State Budget Division and the Legislative Finance Committee, created measures for the program to be included in the Economic Development Division appropriations. The following are the measures and the supporting data for the Industrial Development Training program:
FY99 FY00 FY01
Measure Baseline Projection Target
New Businesses:
Number of positions trained in rural areas 404 440 500
Number of positions trained in urban areas 819 850 950
Number of rural companies assisted 30 35 40
Number of urban companies assisted 35 40 50
Existing Businesses:
Number of positions trained in rural areas 202 210 250
Number of positions trained in urban areas 222 700 800
Percent of appropriated funds expended
in rural areas 26% 30% 40%
Percent of appropriated funds expended
in urban areas 74% 70% 60%
Average wage of rural companies funded $9.00/hr $9.00/hr $9.50/hr
Average wage of urban companies funded $10.23/hr $10.50/hr $10.90/hr
FISCAL IMPLICATIONS
The bill appropriates $6,000.0 from the general fund to the development training fund for expenditure in fiscal year 2000 and subsequent fiscal years. Any unexpended or unencumbered balance remaining shall not revert to the general fund. The bill contains an emergency clause.
MW/gm