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

SPONSOR Swisstack

ORIGINAL DATE

LAST UPDATED

1/25/06

HB 367

SHORT TITLE Develop School District Wellness Policies

SB

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 SB 78

SOURCES OF INFORMATION

LFC Files

Responses Received From

Public Education Department (PED)

SUMMARY

Synopsis of Bill

House Bill 367 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

House Bill 367 – Page

2

wellness policies by the beginning of the 2006-2007 school years.

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 HB 367 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/nt