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F I S C A L I M P A C T R E P O R T
SPONSOR Nava
ORIGINAL DATE
LAST UPDATED
1/31/08
HB
SHORT TITLE Next Generation Fund
SB 455
ANALYST Lucero
APPROPRIATION (dollars in thousands)
Appropriation
Recurring
or Non-Rec
Fund
Affected
FY08
FY09
$250.0
Recurring
General Fund
(Parenthesis ( ) Indicate Expenditure Decreases)
Relates to: SB0453 “Increase Next Generation Fund Corpus"
Relates to Appropriation in the General Appropriation Act
SOURCES OF INFORMATION
LFC Files
Responses Received From
Children, Youth and Families Department (CYFD)
Public Education Department (PED)
SUMMARY
Synopsis of Bill
Senate Bill 455 appropriates two hundred fifty thousand ($250,000) from the general fund to the
next generation fund for expenditure in FY09 and subsequent fiscal years to promote positive
and child youth development pursuant to the Children’s Trust Fund Act.
FISCAL IMPLICATIONS
The appropriation of two hundred fifty thousand ($250,000) contained in this bill is a recurring
expense to the general fund. Any unexpended or unencumbered balance remaining at the end of
fiscal year 2009 shall not
revert to the general fund.
This bill is not part of the CYFD request and it is not part of the executive recommendation.
Under the Children’s Trust Fund Act, under which the Next Generation Fund operates, the FY05
enabling statute, created the fund as a non-reverting fund. Funding is added to the corpus by
appropriation and interest generated off the corpus is used for program expenditure.
pg_0002
Senate Bill 455 – Page
2
Up to ten percent of the income received from investment of the NGF may be expended for costs
to administer the fund and next generation projects. Administrative costs include per diem
(members of the CTF board) and mileage, staff salaries and expenses related to administration of
the fund. As of July 1, 2007, the interest income generated off of the Next Generation Fund was
$82.4 thousand. The expendable portion has been budgeted in the current year.
SIGNIFICANT ISSUES
The next generation fund (NGF) expanded the Children’s Trust Fund mission beyond its
enabling mission which focused on child abuse and neglect prevention. Originally, the
Children’s Trust Fund was created by state statute in 1978 to provide the means to develop
innovative projects which address issues such as, preventing child abuse and neglect, providing
medical, psychological treatment for victims of abuse and neglect and develop community based
services on child abuse and neglect.
NGF projects must provide positive child and youth development activities that support physical,
mental and social well-being; promote strong and health families and help prevent abuse and
neglect; promote community service, leadership and citizenship; and provide community
coordination of child and youth development programming.
Interest monies generated by the fund will be distributed through a competitive grant process,
targeting 0–24-year-old children and youths, administrated by the Children, Youth and Families
Department and guided by the state-appointed board of the Children’s Trust Fund (CTF).
As of July 1, 2007, the Next Generation Fund balance was $1,500.0. This bill will increase the
total fund balance to $2,000.0 in the current year.
PERFORMANCE IMPLICATIONS
"High-yield" out-of-school learning activities and effective instructional strategies may improve
attendance, positively impacting public school performance measures and benchmarks regarding
reading, language arts, math and graduation rates. Additionally, the Next Generation Fund may
positively impact the Pre-K initiative in terms of student readiness to enter school better prepared
to learn.
SB 455 supports multiple children’s cabinet priority areas.
ADMINISTRATIVE IMPLICATIONS
CYFD already administers the Next Generation Council, which oversees administration of the
fund. The proposal does not present significant new administrative activities for CYFD.
CONFLICT, DUPLICATION, COMPANIONSHIP, RELATIONSHIP
Relates to: SB0453 “Increase Next Generation Fund Corpus"
Relates to Appropriation in the General Appropriation Act
pg_0003
Senate Bill 455 – Page
3
OTHER SUBSTANTIVE ISSUES
Recent research shows the following (In School and Out of School Factors, 2008):
High-achieving students spend more time engaged in academic lessons in the classroom
than low-achieving students, and they spend more time engaged in structured literacy-
enhancing activities out of school.
Conversely, low-achieving students spend less total time engaged in structured learning
activities (which include combined in-school and out-of-school time).
At the elementary and high school levels, high achievers spent more time in out-of-
school, high-yield learning activities than low achievers.
High-yield, out-of-school learning includes such diverse activities as leisure reading,
writing, studying, getting tutored, participating in community and school youth clubs and
programs, working on the computer, watching educational television, volunteering, doing
hobbies and playing organized youth sports.
The time students spent in these activities is an indicator of the extent of their learning
opportunities outside of school.
In particular, better readers spent more out-of-school time involved in powerful, high-
impact (high-yield), language-enriched activities that promotes successful acquisition and
expansion of developmentally appropriate reading skills. These activities included:
1.
Weekly time dialoguing with adults, youth club enrichment activities, hobby and
volunteer activities, organized sports and educational television.
2.
Regular study/homework routines, often with adult or peer monitoring and
support.
3.
Reading and writing practices in the home, sometimes including composing text
on the computer.
Reference:
North Central Regional Educational Laboratories, In-School and out-of-school factors that
built student achievements, Retrieved January 28, 2008, from
http://www.ncrel.org/gap/clark/student.htm
.
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