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F I S C A L I M P A C T R E P O R T
SPONSOR Balderas
ORIGINAL DATE
LAST UPDATED
2-6-2006
HB 863
SHORT TITLE Mora County Workforce Training
SB
ANALYST Dearing
APPROPRIATION (dollars in thousands)
Appropriation
Recurring
or Non-Rec
Fund
Affected
FY06
FY07
$100.0
Recurring
General Fund
(Parenthesis ( ) Indicate Expenditure Decreases)
SOURCES OF INFORMATION
LFC Files
Responses Received From
Office of Workforce Training & Development (OWTD)
New Mexico Economic Development Department (NMEDD)
SUMMARY
Synopsis of Bill
House Bill 863 appropriates One Hundred-Thousand Dollars from the general fund to New Mex-
ico Economic Development Department for the purpose of workforce development training pro-
grams to Mora County residents for jobs within the manufacturing industry.
FISCAL IMPLICATIONS
The appropriation of One Hundred-Thousand Dollars 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.
SIGNIFICANT ISSUES
This legislation would support economic development efforts of this region. For example, La
Jicarita Enterprise Community is in the process of developing a Natural Resources Business In-
cubator, with a primary focus of small diameter wood products. This business incubator is open
to placing other manufacturing businesses on-site.
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House Bill 863 Page
2
This legislation appears to do provide the same service as the Job Training Incentive Program
(JTIP) that is administered through the New Mexico Economic Development Department
(NMEDD).
The Workforce Training Act was passed during the 2003 Regular Session. The Workforce
Training Act provides funding for customized workforce training at community colleges. Non-
credit customized training is not included in the educational funding formula. During the first
two years of implementation, FY 04 and FY05 $600,000 a year was appropriated for this use.
Last fiscal year, FY 06, the program did not receive an appropriation.
This statewide program is successful in providing customized training to businesses. This is im-
portant in many ways. It develops the workforce, it assists the Economic Development Depart-
ment in recruiting businesses to the state, and it provides a partnership between local businesses
and the educational institutions.
PERFORMANCE IMPLICATIONS
Please see administrative implications.
ADMINISTRATIVE IMPLICATIONS
According to New Mexico Economic Development Department, there is no additional cost to the
agency if passage of this legislation.
CONFLICT, DUPLICATION, COMPANIONSHIP, RELATIONSHIP
There is related legislation, SB 416 and HB 402, to fund eligible community colleges for non-
credit, high skills training.
WHAT WILL BE THE CONSEQUENCES OF NOT ENACTING THIS BILL
If this legislation is not enacted, the residents of Mora County will lose an opportunity to start
and grow their general workforce in the manufacturing sector. Economic development from this
initiative will not occur.
PD/yr