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F I S C A L I M P A C T R E P O R T
SPONSOR Nava
ORIGINAL DATE
LAST UPDATED
1/26/06
HB
SHORT TITLE School District Wellness Policy Development
SB 78
ANALYST Lewis
APPROPRIATION (dollars in thousands)
Appropriation
Recurring
or Non-Rec
Fund
Affected
FY06
FY07
200.0
Recurring
General Fund
(Parenthesis ( ) Indicate Expenditure Decreases)
Duplicates HB 367
SOURCES OF INFORMATION
LFC Files
Responses Received From
Public Education Department (PED)
SUMMARY
Synopsis of Bill
Senate Bill 78 appropriates $200,000 from the general fund to the Public Education Department
for expenditure in fiscal year 2007 to assist school districts in developing phase 1 wellness poli-
cies based on department rules.
FISCAL IMPLICATIONS
The appropriation of $200,000 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.
SIGNIFICANT ISSUES
According to the Public Education Department (PED), local school districts are required by the
federal Child Nutrition and WIC Reauthorization Act of 2004 to establish and implement school
wellness policies by the beginning of the 2006-2007 school year.
pg_0002
Senate Bill 78 – Page
2
The PED has proposed a wellness rule, public hearings have been held and the rule should be in
effect at the end of February 2006. The proposed rule requires that:
By the beginning of the 2006-2007 school year, district school health advisory councils
(SHACs) will be formed to assist in the development, implementation, monitoring and evalu-
ating of the wellness policies.
By the beginning of the 2006-2007 school year, districts will have physical activity and nutri-
tion components in their wellness policies.
By the end of January 2007, school districts will include health services, social and emotional
well-being, family, school and community partnerships, staff wellness, health education and
life skills’ components in their wellness policies.
Phase 1 of the rule would include development, implementation, monitoring and evaluating
the school district’s local wellness policy in the areas of SHAC development, nutrition poli-
cies and physical activity policies.
ADMINISTRATIVE IMPLICATIONS
If SB 78 is enacted, PED staff will need to set up flow-through accounts for the appropriation
and develop a delivery system, as well as provide technical assistance and fiscal monitoring of
the funds. PED will distribute the money to school districts based on a competitive request for
application (RFA) process. Additional staff time will be required to coordinate funding for all 89
New Mexico school districts. It is estimated that it would take approximately 80 hours of techni-
cal assistance by an Education Administrator A ($25.495 x 80 hrs + 30% benefits = $2,651.48).
This can be accomplished with existing staff.
ML/mt