Fiscal impact reports (FIRs) are prepared by the Legislative Finance Committee (LFC) for standing finance

committees of the NM Legislature. The LFC does not assume responsibility for the accuracy of these reports

if they are used for other purposes.

Current FIRs (in HTML & Adobe PDF formats) are a vailable on the NM Legislative Website (legis.state.nm.us).

Adobe PDF versions include all attachments, whereas HTML versions may not. Previously issued FIRs and

attachments may be obtained from the LFC in Suite 101 of the State Capitol Building North.

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

SPONSOR Altamirano

ORIGINAL DATE

LAST UPDATED

01/24/07

HB

SHORT TITLE Diabetes Prevention, Education & Outreach

SB 126

ANALYST Geisler

APPROPRIATION (dollars in thousands)

Appropriation

Recurring

or Non-Rec

Fund

Affected

FY07

FY08

$1,000.0

Recurring

General

(Parenthesis ( ) Indicate Expenditure Decreases)

ESTIMATED ADDITIONAL OPERATING BUDGET IMPACT (dollars in thousands)

FY07

FY08

FY09 3 Year

Total Cost

Recurring

or Non-Rec

Fund

Affected

Total

$136.0 $136.0

$272.0 Recurring General

(Parenthesis ( ) Indicate Expenditure Decreases)

SOURCES OF INFORMATION

LFC Files

Responses Received From

Department of Health (DOH)

SUMMARY

Synopsis of Bill

Senate Bill 126 would appropriate one million dollars ($1,000,000) from the state general fund to

the New Mexico Department of Health for expenditure in fiscal year 2008 for diabetes preven-

tion, education, and outreach. Any unexpended or unencumbered balance remaining at the end of

the fiscal year would revert to the general fund.

FISCAL IMPLICATIONS

The appropriation in Senate Bill 126 is not part of the Department of Health operating budget

request for FY08. DOH estimates an operating budget impact of $136 thousand per year for two

Senate Bill 126 – Page

2

health educator positions and other costs to run the program.

SIGNIFICANT ISSUES

DOH notes that approximately 1 in 11 adults, or 130,000 New Mexicans have diabetes (Behav-

ioral Risk Factor Surveillance System [BRFSS] 2004 and National Health and Nutrition Exami-

nation Survey [NHANES]). Those with diabetes are at risk for limb amputations, blindness, end-

stage kidney disease and cardiovascular disease (Centers for Disease Control and Prevention

2004). Children are at increasing risk for type 2 diabetes due to obesity, poor nutrition, and lack

of physical exercise.

Medical care and lost productivity for a person with diabetes averages over $13,000 per year,

totaling in excess of $1 billion a year for the state (Diabetes Care study). With diabetes on the

rise, especially among children, these costs are increasing. Over 50% of adults in New Mexico

are overweight or obese (BRFSS), putting them at risk for diabetes. A New England Journal of

Medicine study indicated that one case of diabetes out of seven could be prevented in at-risk

populations through exercise and diet. This could potentially save New Mexico an estimated

$128 million every 3 years (based on 11,997 cases of diabetes prevented).

In 2004, the DOH conducted a statewide diabetes assessment; one of the top priorities identified

was to provide a coordinated response to the problem of diabetes. The assessment was conducted

with input from a wide range of partners that make up New Mexico’s informal diabetes system.

Participants included representatives of Health Care Providers, Diabetes-Related Associations,

the Department of Health, Native American Programs, Universities and Colleges, the Commu-

nity (including People with Diabetes), the Insurance and Pharmaceutical Industries, the Border

Community, and the Legislature. A coordinated response is also a priority of the Diabetes Advi-

sory Council’s 2010 Strategic Plan (available at www.diabetesnm.org).

People with diabetes do not always have access to the preventive services and health care they

need in their communities, underscoring the need for a comprehensive and coordinated response.

Such a response would include prevention programs and education initiatives, as well as health

care for uninsured and underinsured populations. Outreach efforts to communities and tribes

throughout the state would enhance the New Mexico Department of Health Diabetes Prevention

and Control Program’s (DPCP) ability to identify and fund areas of highest need.

ADMINISTRATIVE IMPLICATIONS

Allocation of this appropriation would require application and/or Request for Proposal (RFP)

processes. The increase in funding would most likely require additional DOH staff. Staff time

would be dedicated to creating innovative programs that have a direct impact on diabetes in

communities, community organizing and outreach, development and monitoring of contracts,

technical assistance, and evaluation.

GG/sb