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F I S C A L I M P A C T R E P O R T
SPONSOR Cordova
DATE TYPED 02/01/05 HB 191
SHORT TITLE Statewide Homeless Programs & Services
SB
ANALYST Kehoe
APPROPRIATION
Appropriation Contained Estimated Additional Impact Recurring
or Non-Rec
Fund
Affected
FY05
FY06
FY05
FY06
$150.0
Recurring General Fund
(Parenthesis ( ) Indicate Expenditure Decreases)
Relates to the General Appropriation Act of 2005 (House Bill 2); duplicates Senate Bill 88.
SOURCES OF INFORMATION
LFC Files
Responses Received From
New Mexico Mortgage Finance Authority (MFA)
Human Services Department (HSD)
SUMMARY
Synopsis of Bill
House Bill 191 appropriates $150 thousand from the general fund to the Human Services De-
partment for the purpose of expanding access to programs and services for homeless persons
statewide.
Significant Issues
The appropriation contained in this bill would provide additional funds for the state’s homeless
programs, specifically, the Emergency Shelter Program (ESG) and State Homeless Assistance
Program (SHAP) administered by MFA under a Memorandum of Understanding with HSD. The
funding would provide assistance to local governmental entities or non-profits to improve the
quality of existing emergency shelters, transitional housing, mental health services for the home-
less, veterans’ services, and other supportive services for the homeless. The state appropriation
and federal grants for homeless programs are awarded annually through a competitive process by
pg_0002
House Bill 191 -- Page 2
MFA with guidance from the New Mexico Coalition to End Homelessness.
FISCAL IMPLICATIONS
The appropriation of $150 thousand contained in this bill is a recurring expense to the general
fund. Any unexpended or unencumbered balance remaining at the end of fiscal year 2006 shall
revert to the general fund.
RELATIONSHIP, DUPLICATION
House Bill 2, General Appropriation Act of 2005, contains a recommendation of $750 thousand
for ESG services for fiscal year 2006. House Bill 191 duplicates Senate Bill 88 in its entirety.
OTHER SUBSTANTIVE ISSUES
According to MFA, a 2004 study performed through a Continuum of Care grant shows that 74
percent of homeless families provided transitional housing move on to more stable housing, end-
ing their homelessness. Stable housing is particularly important for children. Another study
conducted by the University of Pennsylvania shows that “providing shelter or supportive housing
to mentally ill homeless people costs no more to society than leaving them on the streets where
they use more expensive services such as emergency rooms, inpatient psychiatric services, etc.”
According to HSD, various agencies serving homeless persons are currently developing a state-
wide resource manual to assist clients regardless of where their first contact is made, similar to a
one-stop shop where clients can be assisted or referred for the services required as determined by
an interviewer or caseworker.
LMK/lg