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

SPONSOR Altamirano

ORIGINAL DATE

LAST UPDATED

2-6-06

2/7/06 HB

SHORT TITLE FOOD BANKS FOR PUBLIC SCHOOLCHILDREN SB 507

ANALYST Hadwiger

APPROPRIATION (dollars in thousands)

Appropriation

Recurring

or Non-Rec

Fund

Affected

FY06

FY07

$1,200.0

Recurring

General Fund

(Parenthesis ( ) Indicate Expenditure Decreases)

Relates to Appropriation in Section 4 of the General Appropriation Act for $400 thousand for

food banks. Duplicates original version of HB231. HB231 was amended to address HSD con-

cerns below.

SOURCES OF INFORMATION

LFC Files

Responses Received From

Department of Finance and Administration (DFA)

Human Services Department (HSD)

Children, Youth and Families Department (CYFD)

Public Education Department (PED)

SUMMARY

Synopsis of Bill

Senate Bill 507 appropriates $1.2 million to the Department of Finance and Administration to

increase funding for food banks statewide ($600 thousand), to purchase fresh fruits and vegeta-

bles for public school lunches ($200 thousand), and to contract with a statewide association of

food banks to purchase foods from New Mexico producers and vendors for an emergency food

program and food for kids backpack program ($400 thousand).

FISCAL IMPLICATIONS

The appropriation of $1.2 million contained in this bill is a recurring expense to the general fund.

Any unexpended or unencumbered balance remaining at the end of FY07 would revert to the

general fund.

Senate Bill 507 – Page 2

SIGNIFICANT ISSUES

The Human Services Department indicated that, in FY06, that agency received $200,000 from

USDA to purchase fresh fruits and vegetables from New Mexico growers for use in all New

Mexico schools who wish to participate. It is unknown whether this federal funding will be

available in FY 07. The appropriation in SB507 will make available fresh produce for school

lunches. The New Mexico Association of Food Banks would also participate in the purchase of

fresh fruits and vegetables, as well as other New Mexico produced products, to offer to low-

income residents in the emergency food box program and the Food for Kids backpack program.

The Public Education Department (PED) provided the following background information:

•

In 2002, New Mexico had the 5

th

highest rate (14.3%) of food insecurity in the nation.

Food insecurity means not having access to enough food due to lack of money

•

Despite improvement, New Mexico’s rate of food insecurity is still 32 percent higher

than the national average (12.1%).

•

328,000 people (17.9) in New Mexico live in poverty. New Mexico has the second

highest poverty rate in the nation.

•

New Mexico’s poverty level is nearly 50% higher than the national average (12.1%).

•

Researchers are beginning to demonstrate the coexistence of obesity and food insecu-

rity in low-income households and individuals (Food Research and Action Center,

Obesity, Food Insecurity and the Federal Child Nutrition Programs: Understanding

the Linkages, Oct. 2005).

•

In New Mexico, 83% of high school students did not eat five or more servings of

fruits and vegetables a day, on average, over the past seven days (2003 YRRS). Two

percent of school-aged children eat the recommended servings each day from all five

food groups, which means they miss out on a variety of nutrients, including vitamins

A, C and B

6

, iron and

calcium.

•

16% of school-aged children do not meet any of the five food group recommenda-

tions.

•

Obesity affects 16% of children 6-19 years and 10% of children 2-5 years.

•

Overweight affect 31% of children 6-19 years and 22% of children 2-5 years.

•

Some 25% of New Mexico high school students are overweight or at risk of becom-

ing overweight.

PERFORMANCE IMPLICATIONS

PED indicated this bill could positively impact agency performance measures that relate to the

Governor’s Obesity Prevention initiative, which would enhance student performance by helping

to increase the number of students performing at grade level in math and reading as nutrition is

positively linked to academic performance.

ADMINISTRATIVE IMPLICATIONS

The Department of Finance and Administration did not anticipate any difficulty administering

the bill. HSD suggested that the bill could be amended to appropriate the $200 thousand directly

to HSD to avoid the need for a MOU.

Senate Bill 507 – Page 3

TECHNICAL ISSUES

HSD suggested that SB507 could be amended to specify that the $200,000 go directly to HSD

for this purpose in order to avoid the need for an additional JPA. HSD would be responsible for

purchasing and delivering the produce to the schools. HSD currently performs similar

administrative duties with USDA funds.

HSD also noted that SB507 restricts the use of fresh fruits and vegetables for public school

lunches. Currently, all New Mexico schools, including private schools, are eligible to participate

in the USDA funded farm-to-school program and commodities programs.

OTHER SUBSTANTIVE ISSUES

HSD also noted that New Mexico continues to be in the top five states reporting the most food

insecurity and hunger “Household Food Security in the United States 2002-2004” from USDA

Economic Research Service statistical report. Food Banks have experienced an increase in re-

quests for emergency food boxes statewide. Introducing more fresh fruits and vegetables into the

diets of school children and low-income families will improve their diets and have a positive im-

pact on obesity and childhood diabetes in our state. The Food for Kids backpack program pro-

vides a backpack of food to a child after school to use overnight or on a weekend, when there

may be no food available at home. All of the fresh produce and other products will be purchased

from New Mexico farmers and vendors; the funds will be re-circulated back into the New Mex-

ico economy.

AMENDMENTS

HSD recommended that the following issues should be addressed through an amendment;

SB507 restricts the use of fresh fruits and vegetables for “public” school lunches. Cur-

rently, all New Mexico schools, including private schools, are eligible to participate in

the USDA funded farm-to-school program and commodities programs.

SB507 appropriates $200,000 to DFA for the purchase of fresh produce for school

lunches. DFA would need to do a JPA with HSD as HSD is the State agency that pur-

chases and delivers food to schools. SB507 could be amended to specify that the

$200,000 go directly to HSD for this purpose and, in doing so, avoid the need for an addi-

tional JPA.

DH/yr:mt