Fiscal impact reports (FIRs) are prepared by the Legislative Finance Committee (LFC) for standing finance

committees of the NM Legislature. The LFC does not assume responsibility for the accuracy of these reports

if they are used for other purposes.

Current FIRs (in HTML & Adobe PDF formats) are a vailable on the NM Legislative Website (legis.state.nm.us).

Adobe PDF versions include all attachments, whereas HTML versions may not. Previously issued FIRs and

attachments may be obtained from the LFC 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 Balderas

ORIGINAL DATE

LAST UPDATED

2-1-06 HB 456

SHORT TITLE

NORTHERN NM SUMMER YOUTH

EMPLOYMENT PROGRAM

SB

ANALYST Lucero

APPROPRIATION (dollars in thousands)

Appropriation

Recurring

or Non-Rec

Fund

Affected

FY06

FY07

$800.0

Recurring

General Fund

(Parenthesis ( ) Indicate Expenditure Decreases)

Duplicates SB 401

Relates to Appropriation in the General Appropriation Act

SOURCES OF INFORMATION

LFC Files

Responses Received From

Office of Workforce Training and Development (OWTD)

Children, Youth and Families Department (CYFD)

Youth Conservation Corps (YCC)

SUMMARY

Synopsis of Bill

House Bill 456 appropriates $800.0 from the general fund to Office of Workforce Training and

Development (OWTD) for the purpose of funding a summer youth employment pilot program in

Colfax, Mora, San Miguel and Taos counties. The pilot program shall serve as a model for a

statewide summer youth employment program.

FISCAL IMPLICATIONS

The appropriation of $800.0 contained in this bill is a recurring expense to the general fund. Any

unexpended or unencumbered balance remaining at the end of fiscal year 2007 shall revert to the

general fund.

House Bill 456 – Page 2

House Bill 456 does not specify employment eligibility requirements or how the funds will be

distributed, except that the funds will go to the Office of Workforce Training and Development

(OWTD). Unclear if administrative costs are included or if a federal match is possible through

AmeriCorp, or Juvenile Justice Department’s funding for preventative programming.

SIGNIFICANT ISSUES

OWTD, formerly known as the NMDOL Job Training Division, administered summer youth

employment programs annually during the duration of the federally funded Job Training Partner-

ship Act (17 years). The program was highly successful in providing work experience and train-

ing to youth ages 14-21 statewide, as well as providing needed income to these youngsters. The

Workforce Investment Act supports year-round training for youth rather than a special summer

program; and because of decreased funding specific summer youth programs have been discon-

tinued. The youth have not been able to obtain summer employment and have lost badly needed

income because many local employers cannot afford to pay wages for workers.

Underemployment among working age youth is a well documented, chronic problem in these

rural northern counties. Increased employment opportunities may deter gang-involvement and

recruitment, property crime, substance abuse among juveniles.

PERFORMANCE IMPLICATIONS

The Office of Workforce Training and Development will need to develop performance measures

and/or goals and objectives, track and report these measures in order to evaluate the success of

the program.

ADMINISTRATIVE IMPLICATIONS

OWTD would need additional staff to train, establish worksites, provide youth counseling, coor-

dinate efforts with local educational institutions and employers, etc. The current OWTD operat-

ing budget does not have general fund; therefore, OWTD would need to utilize a portion of this

appropriation of administrative expenditures. OWTD is funded 100% administratively by fed-

eral funds which may not be utilized to oversee a state funded program.

CONFLICT, DUPLICATION, COMPANIONSHIP, RELATIONSHIP

Duplicates SB 401

TECHNICAL ISSUES

OWTD’s administrative expenses are funded 100% with federal funds. OWTD can not use fed-

eral funding to oversee a state funded program.

WHAT WILL BE THE CONSEQUENCES OF NOT ENACTING THIS BILL

Employers in Northern New Mexico counties will not be able to hire local youth that need jobs.

The youth of these communities will not have the opportunity to obtain work, develop healthy

work ethics, earn an income, or contribute to the state and local economy. Idle youth will not

have constructive activities during the summer months.

House Bill 456 – Page 3

AMENDMENTS

An amendment could be made to House Bill 456 to specify how OWTD shall distribute the

funds, i.e. what type of organizations can apply to receive the funds and identify employment

eligibility requirements for the youth to participate in a summer employment pilot program.

Programs which receive federal funding matches should be given priority.

DL/yr