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

SPONSOR:	Ponce		DATE TYPED:	2/11/03		HB	92
SHORT TITLE:		National Guard Youth ChalleNGe Program				SB
					ANALYST:		Collard

APPROPRIATION

Appropriation Contained		Estimated Additional Impact		Recurring or Non-Rec	Fund Affected
FY03	FY04	FY03	FY04
	$420.0			Recurring	General Fund

(Parenthesis ( ) Indicate Expenditure Decreases)

REVENUE

Estimated Revenue		Subsequent Years Impact	Recurring or Non-Rec	Fund Affected
FY03	FY04
	See Narrative		Recurring	Federal

(Parenthesis ( ) Indicate Revenue Decreases)

Relates to Appropriation in the General Appropriation Act

SOURCES OF INFORMATION

Responses Received From

Department of Military Affairs

SUMMARY

Synopsis of Bill

House Bill 92 appropriates $420.0 from the general fund to the Department of Military Affairs for the purpose of fully funding the National Guard Youth ChalleNGe program.

FISCAL IMPLICATIONS

The appropriation of $420.0 contained in this bill is a recurring expense to the general fund. Any unexpended or unencumbered balance remaining at the end of FY04 shall revert to the general fund.

The Department of Military Affairs notes that the New Mexico Youth ChalleNGe Academy budget is based on a target of 200 students per year. At a pre-designated cost per student, this translates to an annual budget of $2,800.0, of which 60 percent is federally funded, and the other 40 percent must be contributed by the state, approximately $1,120.0 as a matching share. House

Bill 92 recommends an appropriation of $420.0 which would leave a difference of approximately $700.0 still needed in state support, which is proposed in the general appropriation act. The program cannot continue without the state match.

RELATIONSHIP

House Bill 92 relates to an appropriation in the general appropriation act.

OTHER SUBSTANTIVE ISSUES

The department notes the New Mexico Youth ChalleNGe Academy is a program for at-risk teenage high school dropouts. The academy incorporates eight core components in a 22-week quasi-military residence program to assist students in earning a general equivalency degree (GED) and redirect them toward a more productive and successful lifestyle. There are two classes per year.

KBC/njw:yr:prr