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F I S C A L I M P A C T R E P O R T
SPONSOR Lopez
ORIGINAL DATE
LAST UPDATED
1/30/2006
HB
SHORT TITLE EDUCATION WORKS PROGRAM
SB 150
ANALYST Weber
APPROPRIATION (dollars in thousands)
Appropriation
Recurring
or Non-Rec
Fund
Affected
FY06
FY07
$500.0
Recurring
General Fund
(Parenthesis ( ) Indicate Expenditure Decreases)
Relates to Appropriation in the General Appropriation Act
Duplicates HB 20
SOURCES OF INFORMATION
LFC Files
Responses Received From
Human Services Department (HSD)
Public Education Department (PED)
SUMMARY
Senate Bill 150 appropriates $500 thousand from the general fund to the Higher Education
Department for the purpose of increasing funding to the Education Works Program.
FISCAL IMPLICATIONS
The appropriation of $500 thousand contained in this bill is a recurring expense to the general
fund. Any unexpended or unencumbered balance remaining at the end of FY07 shall revert to the
general fund.
SIGNIFICANT ISSUES
The Human Services Department comments.
The Education Works Program is administered by the Human Services Department. The
appropriation should be made to Human Services Department and not Higher Education
pg_0002
Senate Bill 150 Page 2
Department since the program is administered and eligibility is determined by Human Services
Department.
Currently there are 500 slots available for the Education Works Program with an annual $2
million budget. During state fiscal year 2005, there was a monthly participation of 450
participants in the program with a fiscal year expenditure of $1,861,924. During the traditional
school year the need for Education Works Program slots increase. In fiscal year 2005 there were
less than 20 slots available at times during the school year.
Data from the Human Services Department work program contractors for FY05 has been not
finalized, however during state fiscal year 2004 there were approximately 43 graduation degrees
obtained by participants in the program.
These general fund dollars may be credited toward the TANF Maintenance of effort (MOE)
requirement; however, under the federal Budget Reconciliation Bill for TANF reauthorization
bill which is likely to pass this spring and be effective October 1, 2006, if used for cash
assistance, families must be meeting the federal work participation rates of 50% all families and
90% 2-parent families. This would be difficult for participants in the Education Works Program
since under federal regulation vocational/post-secondary education is limited to 12 months that
individuals may obtain under the New Mexico Works program. HSD may opt to exclude some
or all of these general fund dollars from the MOE requirement.
TECHNICAL ISSUES
This bill appropriates the $500 thousand to the Higher Education Department. If the intent of the
bill is just to expand the existing Education Works program then consideration should be given
to making the appropriation the the Human Services Department. The infrastructure already
exists to administer an expanded Education Works population and would seem more efficient.
ANA/yr