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 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

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