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F I S C A L I M P A C T R E P O R T
SPONSOR Varela
ORIGINAL DATE
LAST UPDATED
2/14/07
HB 813
SHORT TITLE Santa Fe Youth Development Programs
SB
ANALYST Lucero
APPROPRIATION (dollars in thousands)
Appropriation
Recurring
or Non-Rec
Fund
Affected
FY07
FY08
$200.0
Recurring
General Fund
(Parenthesis ( ) Indicate Expenditure Decreases)
Relates to HB419, HB536, HB25, and SB2967
Relates to Appropriation in the General Appropriation Act
ESTIMATED ADDITIONAL OPERATING BUDGET IMPACT (dollars in thousands)
FY07
FY08
FY09 3 Year
Total Cost
Recurring
or Non-Rec
Fund
Affected
Total
(Parenthesis ( ) Indicate Expenditure Decreases)
SOURCES OF INFORMATION
LFC Files
Responses Received From
Children, Youth and Families Department (CYFD)
Office of Workforce Training and Development (OWTD)
Youth Conservation Corps (YCC)
SUMMARY
Synopsis of Bill
House Bill 813 appropriates two hundred thousand ($200,000) from the general fund to Office of
Workforce Training and Development for expenditure in fiscal years 2007 and 2008 to contract
with a community-based organization to support the continuation and expansion of out-of-school
youth employment, service learning and general educational development certificate completion
in Santa Fe County.
pg_0002
House Bill 813 – Page
2
FISCAL IMPLICATIONS
The appropriation of two hundred thousand ($200,000) contained in this bill is a recurring
expense to the general fund. Any unexpended or unencumbered balance remaining at the end of
fiscal year 2008 shall revert to the general fund. The bill declares an emergency for public
peace, health and safety.
SIGNIFICANT ISSUES
The United Stated Department of Labor (USDOL) in July 2006 reported that 2.8 million youth
were unemployed. The youth unemployment rate (11.25%) was about the same in July 2005.
These numbers support the need for additional youth employment opportunities.
Future labor market trends provide strong indications that, in order to prepare the out-of-school
youth of Santa Fe County with career oriented employment, service learning, and general
educational development certificates of completion, additional programming is needed such as
that proposed by the bill. OWTD supports the proposed bill to provide opportunities to the out-
of-school youth of Santa Fe County.
OWTD currently administers the federal WIA Youth Program in four Local Workforce
Development Areas across New Mexico, as well as the General Fund At-Risk Youth Program,
which provides various career-building and related opportunities to youth statewide. The
proposed program would complement these existing programs.
PERFORMANCE IMPLICATIONS
This legislation would likely increase employment opportunities for out-of-school youth in Santa
Fe County and increase the number of youth gaining employment.
ADMINISTRATIVE IMPLICATIONS
It is anticipated that OWTD could retain up to five percent of the appropriation for
administrative costs to support the activities associated with administering the program,
including fiscal administration and compliance monitoring. This is not been specified in the bill.
CONFLICT, DUPLICATION, COMPANIONSHIP, RELATIONSHIP
The bill is related to HB 419 and SB 295, both of which propose $1.5 million for a Northern
New Mexico Summer Youth Employment Program in various counties as part of a Summer
Youth Employment Initiative.
TECHNICAL ISSUES
The appropriation in this bill would fund only a Santa Fe county youth development program.
There is a need for a statewide program.
pg_0003
House Bill 813 – Page
3
OTHER SUBSTANTIVE ISSUES
•
The program will serve youth who are deficient in basic literacy skills, school dropouts,
pregnant and parenting, offenders or individuals who require additional assistance to
complete an educational program or to secure and maintain employment.
•
Based on individual participant assessment, such services are provided through classroom
training, employability and/or life skills training, information technology training and
work experience opportunities.
•
The program will be accomplished through collaboration with local community leaders,
and business members.
•
This appropriation would provide the county with funds needed to expand the program
and continue providing workforce training for adults and high school dropouts.
•
This program prepares youth for postsecondary educational opportunities and for
employment.
The out-of-school youth employment component offers students the ability to gain the needed
workplace skills for employment.
ALTERNATIVES
None identified at this time.
WHAT WILL BE THE CONSEQUENCES OF NOT ENACTING THIS BILL
Out-of-School youth in Santa Fe County will continue to fall behind the national averages of
employment and will continue to be limited to existing summer jobs or minimum wage jobs.
DL/nt