Senator (presenter) introduced Senate Bill 175 to expand the Childcare Evolving Loan Fund and allow loan repayment on a contract-for-service basis for qualifying providers, and the Senate Finance Committee voted to give the bill a do-pass recommendation.

Senator Bregman (presenting) told the committee the fund, housed at the New Mexico Finance Authority (NMFA), was created in 2003, has been funded twice (in 2005 and last year with $1,750,000), and that the governor’s request and the Legislative Finance Committee (LFC) budget include a $10,000,000 appropriation expected to appear in HB 2. SB175 would allow loans from the fund to be repaid as contracts for services if providers meet eligibility criteria such as being located in a childcare desert or offering nontraditional hours; it would also expand eligibility to permit employers to offer childcare services for employees through loans.

Markita Russell (NMFA) was present as a technical resource. The bill’s sponsor said access to capital is the principal barrier for many providers and that the change would make the loan product more usable for expansion and nontraditional providers.

The committee recorded a motion for a do-pass recommendation, moved by Senator Treehild and seconded by Senator Steinborn, and proceeded with a roll call that recorded affirmative votes from committee members present. The committee clerk announced the bill had a do-pass recommendation and would be printed and sent to the floor when appropriate.

What’s next: the bill’s sponsorship materials indicate the LFC and governor’s office expect an appropriation in HB 2; with the committee’s do-pass recommendation, the measure moves toward floor consideration and any appropriation decisions within the larger budget process.