Fiscal impact reports (FIRs) are prepared by the Legislative Finance Committee (LFC) for standing finance
committees of the Legislature. LFC does not assume responsibility for the accuracy of these reports if they
are used for other purposes.
F I S C A L I M P A C T R E P O R T
SPONSOR Jaramillo
/Nava/Brantley/Sanchez
LAST UPDATED
ORIGINAL DATE 2/20/25
SHORT TITLE Correctional Reentry Workforce Program
BILL
NUMBER Senate Bill 351
ANALYST Sanchez
APPROPRIATION*
(dollars in thousands)
FY25 FY26
Recurring or
Nonrecurring
Fund
Affected $13,500.0 Nonrecurring General Fund
Parentheses ( ) indicate expenditure decreases.
*Amounts reflect most recent analysis of this legislation.
ESTIMATED ADDITIONAL OPERATING BUDGET IMPACT*
(dollars in thousands)
Agency/Program
FY25 FY26 FY27
3 Year
Total Cost
Recurring or
Nonrecurring
Fund
Affected
NMCD No fiscal impact
Indeterminate
but minimal
Indeterminate
but minimal
Indeterminate
but minimal
Recurring General Fund
Parentheses ( ) indicate expenditure decreases.
*Amounts reflect most recent analysis of this legislation.
Relates to Senate Bills 54 and 350.
Duplicates House Bill 419.
Sources of Information
LFC Files
Agency Analysis Received From
Administrative Office of the Courts (AOC) Law Offices of the Public Defender (LOPD) Office of the Attorney General (NMAG) New Mexico Sentencing Commission (NMSC) Adult Parole Board (APD) Corrections Department (NMCD) Department of Public Safety (DPS) Agency Analysis was Solicited but Not Received From
Administrative Office of the District Attorneys (AODA)
Economic Development Department (EDD)
Because of the short timeframe between the introduction of this bill and its first hearing, LFC has
yet to receive analysis from state, education, or judicial agencies. If that analysis is received, this
analysis could be updated. Senate Bill 351 – Page 2
SUMMARY
Synopsis of Senate Bill 351
Senate Bill 351 (SB351) appropriates $13.5 million from the general fund to the Local
Government Division of the Department of Finance and Administration for fiscal year 2026. The
funds are designated for the North Central New Mexico Economic Development District to
administer and expand a correctional reentry workforce development program. The program
aims to assist individuals transitioning from incarceration by providing workforce training and
employment opportunities.
This bill does not contain an effective date and, as a result, would go into effect 90 days after the
Legislature adjourns if enacted, or June 20, 2025.
FISCAL IMPLICATIONS
The appropriation is a one-time expenditure, and the bill does not include provisions for ongoing
funding beyond fiscal year 2026. The New Mexico Corrections Department (NMCD) notes that
additional staffing and administrative resources may be necessary if the agency is eligible to
participate in the program. NMCD indicates that integrating the program within correctional
facilities could require increased staffing for program coordination, data collection, and security
oversight. Additionally, the agency notes that the scale of the appropriation exceeds 50 percent
of its current reentry budget, which serves both incarcerated individuals and those on probation
or parole, raising questions about long-term sustainability.
The New Mexico Sentencing Commission reports that an estimated 3,677 individuals will be
released from the New Mexico Corrections Department over the next decade. Workforce
development programs have been associated with lower recidivism rates, but the bill does not
specify the extent to which the proposed funding will meet reentry needs statewide. Given the
one-time nature of the appropriation, long-term program sustainability may depend on future
legislative actions or alternative funding sources.
The appropriation of $13.5 million contained in this bill is a nonrecurring expense to the general
fund. Any unexpended or unencumbered balance remaining at the end of FY26 shall revert to the
general fund.
SIGNIFICANT ISSUES
Senate Bill 351 provides funding to support a correctional reentry workforce development
program but does not specify eligibility criteria for funding distribution. While the bill designates
the North Central New Mexico Economic Development District as the administering entity, it is
unclear whether participation is limited to organizations and individuals within the district’s
geographic boundaries or if state agencies, such as NMCD, could also receive support. NMCD
indicates that clarification on eligibility may be necessary to determine the extent of its
involvement in program implementation. Additionally, NMCD notes that integrating the
program within correctional facilities could require agreements for data sharing and
collaboration, which may need to be addressed before implementation.
Reentry workforce development programs are generally intended to support individuals
transitioning from incarceration by providing job training and employment services. Research Senate Bill 351 – Page 3
has linked access to employment opportunities with lower recidivism rates, but the bill does not
include specific performance measures or reporting requirements to evaluate the program’s
effectiveness. Without defined metrics, assessing the program’s impact on employment
outcomes, recidivism, or broader workforce participation trends may be challenging.
ADMINISTRATIVE IMPLICATIONS
SB351 tasks the North Central New Mexico Economic Development District with administering
and expanding a correctional reentry workforce development program. While the bill provides a
one-time appropriation, it does not outline specific administrative requirements related to
program oversight, fund distribution, or reporting. Depending on the scope of implementation,
the administering entity may need to establish new processes for selecting participants, tracking
outcomes, and coordinating with relevant state agencies.
NMCD notes that if it is eligible to participate, additional administrative capacity may be
necessary to support inmate recruitment, program facilitation, and data-sharing agreements. This
could require coordination between NMCD’s Reentry Division and the Adult Prison Division to
integrate services within correctional facilities. Similarly, if the program requires collaboration
with the Parole Board or other agencies involved in post-release supervision, agreements may be
needed to facilitate information exchange and service referrals.
The bill does not establish a formal reporting mechanism, which may affect the ability of
policymakers and stakeholders to assess program performance and financial oversight. If data
collection is required for future program evaluation or funding decisions, the administering entity
may need to develop tracking systems to measure participation rates, employment outcomes, and
recidivism trends over time.
CONFLICT, DUPLICATION, COMPANIONSHIP, RELATIONSHIP
House Bill 419 and Senate Bills 54 and 350 also address aspects of reentry services, transitional
housing, and workforce development for formerly incarcerated individuals. While these efforts
may complement the objectives of Senate Bill 351, overlapping responsibilities or funding
streams may require coordination across agencies and organizations administering similar
programs.
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