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F I S C A L I M P A C T R E P O R T
SPONSOR Fidel
ORIGINAL DATE
LAST UPDATED
2/4/06
HB
SHORT TITLE Community College High Skills Training
SB 416
ANALYST Earp
APPROPRIATION (dollars in thousands)
Appropriation
Recurring
or Non-Rec
Fund
Affected
FY06
FY07
$600.0
Recurring
General Fund
(Parenthesis ( ) Indicate Expenditure Decreases)
Duplicates House Bill 402
Relates to Appropriation in the General Appropriation Act
SOURCES OF INFORMATION
LFC Files
Responses Received From
Higher Education Department (HED)
SUMMARY
Synopsis of Bill
Senate Bill 416 appropriates $600,000 from the general fund to the Higher Education Depart-
ment to be distributed to eligible community colleges for noncredit high-skills training pursuant
to the provisions of the Workforce Training Act.
FISCAL IMPLICATIONS
The appropriation of $600,000 contained in this bill is a recurring expense to the general fund.
Any unexpended or unencumbered balance remaining at the end of fiscal year 2007 shall revert
to the general fund. These funds would augment a recurring appropriation of $600,000 made to
HED for this purpose in the General Appropriation Act.
pg_0002
Senate Bill 416 Page
2
SIGNIFICANT ISSUES
This proposal was not included among the special program funding requests included in the HED
fiscal year 2007 funding recommendations to the Legislature.
ADMINISTRATIVE IMPLICATIONS
The current appropriation for high-skills training is administered by HED and flows to the New
Mexico Association of Community Colleges (NMACC). NMACC determines and oversees the
distribution of funds to the community colleges. It is anticipated that this administrative ar-
rangement would continue if the expansion funding provided though this legislation is approved.
CONFLICT, DUPLICATION, COMPANIONSHIP, RELATIONSHIP
House Bill 402 and Senate Bill 416 are duplicate measures.
OTHER SUBSTANTIVE ISSUES
HED reports that the state appropriation provides matching funds to the community colleges for
the development, expansion and support of high-skills training programs. The colleges work with
small and large employers to design and provide customized training, adapted to their actual
business needs and the technical training needs of their employees. Employees receive this spe-
cial training to obtain or advance in employment. Colleges track entities served, number of indi-
viduals trained and contact hours. NMACC determines the appropriate funding to the community
colleges based on the number of credit hours generated.
This customized training supplements the State's workforce development efforts and offers op-
portunities for state residents to obtain the skills necessary to provide a well-trained workforce
for New Mexico employers. The funding also enables community colleges to better respond to
the needs of their communities and participate in attracting, retaining, and recruiting employers
that can provide employment for trained workers.
POSSIBLE QUESTIONS
If this bill is enacted, will the available state funding (approximately $1.2 million in total) be suf-
ficient to fully-fund the high-skills training programs at all eligible colleges. If not, what is the
estimated total funding need for this program.
DKE/nt