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.





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





SPONSOR: Sanchez DATE TYPED: 02/28/01 HB HB 678/aHCPAC
SHORT TITLE: Encourage & Support Marriage SB
ANALYST: Dunbar


APPROPRIATION



Appropriation Contained
Estimated Additional Impact
Recurring

or Non-Rec

Fund

Affected

FY01 FY02 FY01 FY02
$ 800.0 Recurring TANF BLOCK GRANT



(Parenthesis ( ) Indicate Expenditure Decreases)



SOURCES OF INFORMATION



Human Services Department (HSD)

Commission on Higher Education (CHE)

Administrative Office of the Courts (AOC)



SUMMARY



Synopsis of HCPAC Amendment



The House Consumer and Public Affairs committee amendment of HB 678 deletes the provision allowing $250.0 for a media campaign to land the benefits of marriage. The bill was also amended to include in the statewide program to teach marriage skills and marriage maintenance skills a segment on the "prevention of domestic violence".



Synopsis of Original Bill



HB 678 appropriates $1,050.0 from the Temporary Assistance to Needy Families (TANF) block grant to New Mexico State University (NMSU) for:



(1) $800,000 for a program to teach marriage skills and marriage maintenance skills to TANF participants, and



(2) $250,000 for a media campaign to laud the benefits of marriage.



     Significant Issues



HB 678 would support one of four express purposes of § 401(a)(4) of the Personal Responsibility and Work Opportunity Reconciliation Act (PRWORA), to "encourage the formation and maintenance of two-parent families."



The program could qualify as a "life-skills training" component, a temporary alternative work activity, permitted under § 27-2B-5(E)(1) of the New Mexico Works Act.



HSD already has a contract with NMSU to provide services, including orientation, education, and training to TANF recipients, and could incorporate the type of training envisioned in the appropriation.



A request was not included in NMSU's budget request to the NMSU Board of Regents, and thus was not submitted by NMSU to the Commission on Higher Education for review.



PERFORMANCE IMPLICATIONS



HSD notes that the marriage enrichment activities of TANF recipients could fulfill the number of hours on the secondary activities work requirement for participation in work programs, and potentially increase the percentage of work participants.



FISCAL IMPLICATIONS



HB 678 appropriates $1,050.0 from the Temporary Assistance to Needy Families (TANF) block grant. Any unexpended balances would revert to the Human Services Department (HSD) for TANF block grant funding.



ADMINISTRATIVE IMPLICATIONS



The Administrative Office of the Courts states that the fiscal implications on the judiciary will directly follow the amount of litigation that is generated or alternatively, avoided, by the Act.

OTHER SUBSTANTIVE ISSUES



HSD indicates that the implementation of a statewide marriage enrichment program for families receiving TANF, and the campaign to laud the benefits of marriage, could easily be incorporated into HSD's existing contract with work program providers. HSD's work program contractors currently operate statewide and have developed community resources that support work efforts by TANF work participants. Directing this funding to work program contractors is more appropriate.



Using the work program contracts would avoid the need to develop a separate referral and tracking process. Providing such services through existing contract providers would ensure better coordination of participants' activities.



AMENDMENTS



The Commission on Higher Education suggests the following language for all new recurring higher education programs and expansion of current programs (assuming that funding will continue beyond 2001-2002):



"The institution receiving the appropriation in this bill shall submit a program evaluation to the Legislative Finance Committee and the Commission on Higher Education by August 2, 2004 detailing the benefits to the State of New Mexico from having this program implemented for a three-year period."



As an alternative, the bill could be amended to reflect HSD's point that the funds should be directed to the work program TANF contractors. This would enable the program to go statewide and comparison of various programs could be made on year to year basis. This would enable the contractors to adopt the a"best practice"program. Performance indicators would need to be developed.



BD/njw:ar