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F I S C A L I M P A C T R E P O R T

SPONSOR Feldman

DATE TYPED 2-25-05

HB

SHORT TITLE Obesity Prevention Programs

SB 794

ANALYST Collard

APPROPRIATION

Appropriation Contained Estimated Additional Impact Recurring

or Non-Rec

Fund

Affected

FY05

FY06

FY05

FY06

$750.0

Recurring General Fund

(Parenthesis ( ) Indicate Expenditure Decreases)

Relates to HB 61, SB 10, SJM 2, SB 595 and HB 681

Relates to Appropriation in the General Appropriation Act

SOURCES OF INFORMATION

LFC Files

Responses Received From

Department of Health (DOH)

Health Policy Commission (HPC)

Public Education Department (PED)

SUMMARY

Synopsis of Bill

Senate Bill 794 appropriates $750 thousand from the general fund to DOH for the purpose of

providing programs that improve nutrition and physical activity in schools and communities to

prevent obesity in children and teenagers.

Significant Issues

DOH indicates the federal Child Nutrition Act, reauthorized in 2004, requires local education

authorities to establish policies that provide nutrition guidelines for all foods on campus, goals

for nutrition education, goals for physical activity, goals for school based activities to promote

student wellness, and evaluation of the policies by July 31, 2006.

DOH has identified obesity as one of its top five health priorities. Efforts are underway in exist-

Senate Bill 794 -- Page 2

ing and new school based health centers to address youth who are overweight or at risk for be-

coming overweight. New Mexico Action for Healthy Kids, a statewide coalition, is advocating

for nutrition and physical activity policies in schools. Their School Physical Activity and Nutri-

tion Forum (Spring 2004) resulted in a strategic plan for quality nutrition, and nutrition and

physical education in the school setting. This school plan was incorporated into an overall state

plan to prevent and control obesity and other chronic diseases that is coordinated by DOH’s

Obesity, Physical Activity and Nutrition Program (OPAN).

FISCAL IMPLICATIONS

The appropriation of $750 thousand contained in this bill is a recurring expense to the general

fund. Any expended or unencumbered balance remaining at the end of FY06 shall revert to the

general fund.

ADMINISTRATIVE IMPLICATIONS

DOH would use a portion of the appropriation for one FTE health educator, at a cost of $53

thousand, to monitor related contracts, provide technical assistance to ensure age-appropriate and

culturally sensitive instruction, and oversee evaluation of the youth programs.

RELATIONSHIP

Senate Bill 794 relates to House Bill 61 and House Bill 62 introduced on behalf of the Legisla-

tive Education Study Committee in response to House Memorial 28 of the 2004 legislative ses-

sion. House Bill 61 addresses the nutrition standards for schools and House Bill 62 addresses

physical activity. Senate Bill 794 also relates to Senate Bill, which proposes a $50 thousand ap-

propriation for a study of and recommendations for current nutritional offerings in New Mexico

public schools, restricting the sale of junk food, developing a curriculum for promoting healthy

physical activity, and assessing financial impact on public schools; Senate Joint Memorial 2,

which proposes DOH and the Public Education Department make collective recommendations to

increase the physical activity and improve the eating habits of youth; Senate Bill 295, which pro-

poses to establish nutritional standards and standard portion sizes for competitive foods and bev-

erages sold and distributed in public and charter schools; and House Bill 681 and its duplicate,

Senate Bill 595, which proposes to create the Student Wellness Fund and enable the legislature

to appropriate monies to the fund for school based health centers and child nutrition and wellness

education activities.

OTHER SUBSTANTIVE ISSUES

DOH indicates increased weight has been seen in New Mexico’s youth. At least 23 percent of

New Mexican high school students are overweight or at risk for overweight. In addition, 22 per-

cent of New Mexico’s 2- to 5-year olds who participate in federally funded nutrition programs

weigh too much (9 percent are overweight and 13 percent are at risk for overweight, based on

direct measurements.)

Also in New Mexico, 56 percent of high school students report vigorous activity three or more

days a week. Of those in the at-risk of overweight category, 41 percent of females and 38 percent

of males said they exercised The same survey showed only 17 percent of high school students

reported eating 5 or more servings of fruits and vegetables a day.

Senate Bill 794 -- Page 3

DOH notes, since physical activity and nutritional habits begun in childhood are more likely to

be continued into adulthood, establishing those habits early is critical. Similarly, children who

are overweight or at risk for overweight are more likely to become overweight or obese as adults

and there are long term serious and costly consequences.

The Dietary Guidelines for Americans 2005 recommend that children and adolescents, in par-

ticular, should consume more whole-grain products, 2-3 cups per day of fat-free or low fat milk

or milk equivalent products, increase intake of fruits and vegetables, avoid excessive amounts of

calories from added sugars, and fat intake should be controlled for quantity and types of fat.

Obesity-related pediatric costs have tripled in the past 25 years even when inflation is taken into

account. These costs are expected to increase over time, as today’s overweight children become

tomorrow’s obese adults. The annual direct cost of adult obesity in New Mexico is now esti-

mated at $324 million, with more than $84 million of that amount paid via the state Medicaid

program.

Overweight children have a higher incidence of psychosocial distress, orthopedic problems, liver

disease,

sleep apnea, high blood pressure and asthma. In addition, the physical conditions that

lead to heart disease and stroke begin in childhood. A recent study has uncovered an alarming

number of adolescents with cardiovascular disease risk factors usually considered to be condi-

tions of middle-aged adults. Twenty five percent of children ages 5 to 10 year have high choles-

terol, high blood pressure, or other early warning signs for heart disease.

During the past decade, there has also been an alarming development of Type 2 diabetes (for-

merly called “adult onset”) in adolescents and young adults, mainly those with weight problems.

DOH research shows that one in three United States children born in 2000 will become diabetic

unless people start eating less and exercising more. Because this younger group will be living

with diabetes for a longer time period, they will also be at increased risk for diabetes complica-

tions such as heart disease, stroke, kidney failure, blindness and amputations. Many thousands

of cases of diabetes in New Mexico could be prevented or postponed through diet, exercise, and

attaining a healthier weight.

A national poll among 500 public school teachers and 800 parents of school children found that

81 percent of teachers and 85 percent of parents favor schools requiring students to take physical

education classes every day at every grade level. Ninety percent of teachers and 86 percent of

parents are convinced that physically active children are better able to learn and are better be-

haved in the classroom. Among New Mexican adults, 75 percent believe that sales of unhealthy

food in public schools should be eliminated and 71 percent would like to eliminate advertising of

unhealthy food and drinks on public school grounds according to a February 2004 survey con-

ducted by Research America in English and Spanish with 800 New Mexico adults.

PED indicates studies show that young adults who were obese as adolescents completed fewer

years of school, were less likely to be married and were more likely to live in poverty than those

who were not obese as adolescents, after controlling for baseline socioeconomic status and apti-

tude tests.

In New Mexico, just as in the rest of the nation, drinks and snacks of low nutritional value are

marketed in middle and high schools. Children who routinely eat or drink junk foods lower their

Senate Bill 794 -- Page 4

consumption of nutritive foods such as milk, fruits and vegetables. In doing so, children develop

deficiencies in important vitamins, minerals, proteins and other nutrients. Iron deficiency, for

instance, has been associated with shortened attention span, irritability and fatigue. Low protein

intake has been associated with poor academic achievement. Poor nutrition and hunger interfere

with cognitive function and may be present in underweight, normal weight and overweight chil-

dren. Persons who eat at least five servings of fruits and vegetables a day are less likely to suffer

from heart disease and cancer.

Additionally, PED notes chronically malnourished children, whether underweight or not, attain

lower scores on standardized tests, are less likely to resist infection and are more likely to miss

school, thereby impacting their school performance.

PED indicates lack of physical activity and fitness is just as crucial as poor nutrition in fostering

obesity among children and adults. Numerous studies show that, on average, children today

spend fewer hours engaged in physical activities, such as walking to school, riding their bikes

and playing outdoors, than their parents and grandparents did. Their leisure time is more likely

to be spent watching TV (on average, children watch three and one-half hours of TV on a week

day).

KBC/yr