| Nutrition Services Division Management Bulletin SNP-02-2007 |
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| To: School Nutrition Program Sponsors |
Number: NSD-SNP-02-2007 |
| Attention: Food Service Director and Business Official |
Date: January 2007 |
| Subject: Reimbursement Rates for the National School Lunch, School Breakfast, State Meal, and Special Milk Programs for School Year 2006-07 |
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| Reference: Federal Register, Volume 71, Number 132, July 11, 2006; Federal Register Volume 71, Number 136, July 17, 2006; United States Department of Agriculture Guidance; and Fiscal Year 2006-07 California State Budget | |
This Management Bulletin (MB) reiterates the annual reimbursement rates to School Nutrition Programs (SNPs) for the 2006-07 school year. We originally sent this information to you via e-mail and posted it to the California Department of Education (CDE) Web site in July and August 2006, respectively.
Included with this MB (DOC; 70KB; 1p.) are (1) the federal rates established by the United States Department of Agriculture (USDA) for the National School Lunch Program, School Breakfast Program, Special Milk Program, and Meal Supplements (Snacks) under the National School Lunch Program; and (2) the State Meal rate provided by the 2006-07 California State Budget and related legislation for the State Meal Program. These reimbursement rates are effective July 1, 2006, through June 30, 2007.
Notable Changes From 2005-06
The reimbursement for milk per half pint was decreased for the second consecutive year, a reflection of the Producer Price Index for Fluid Milk Products; and breakfast, lunch, and Snack reimbursement rates reflect an increase in the Consumer Price Index. All of the reimbursement rates are available on the CDE Web site at Rates, Scales, & Funding.
The CDE Fiscal and Administrative Services Division distributed the 2006-07 Reimbursement Calculation Worksheets at the end of July 2006, which include the federal reimbursement rates for the 2006-07 school year (the State rate was yet to be determined at the time these forms were printed). These forms assist SNP sponsors in preparing budgets for their programs by calculating expected monthly reimbursement by type of program/funding. Blank copies of these forms can be found at School Nutrition Program Calculation Worksheet (DOC; 24KB; 2pp.).
State Meal Rate and Possible Shortfall
The passage of Assembly Bill (AB) 1802 required the CDE to reimburse every free and reduced-price meal at $0.21, starting with the 2006-07 school year for charter schools, school districts, and county offices of education (COEs) (Education Code Section 49430.5, as amended). (Note: All other SNP sponsors eligible for state meal reimbursement are receiving $0.1563 per free and reduced-price meal served.) Unfortunately, the Budget Bill funding for free and reduced-price meals was reduced by the Governor's veto, and the remaining amount is not sufficient to pay all claims at a rate of $0.21. The Legislature passed another bill (Senate Bill 1674), which would have appropriated the funds needed to pay for the increased reimbursement, but the Governor also vetoed this bill. Therefore, the CDE is paying the increased rate, as required by law, and will seek additional funding.
What does this change in the State Meal reimbursement rate mean to SNP sponsors?
The CDE was not appropriated sufficient funding to support the statutorily specified amount of reimbursement for all free and reduced-price meals in charter schools, school districts, and county offices of education for the entire year. Without an additional appropriation, the CDE expects that it should be able to pay all reimbursement claims for eligible meals provided through March 2007, and estimates that it will pay all remaining claims for April through June 2007 at $0.03 in state reimbursement.
While the CDE is working with the Legislature to obtain the funding needed to fully reimburse state meal claims throughout the year, we encourage charter schools, school districts, and county offices of education to plan appropriately for this uncertain situation.
Please note that Federal reimbursement rates are not and will not be affected, and will continue at their full level through the state fiscal year.
Where to Direct Questions
For questions regarding the SNP calculation worksheets or monthly reimbursement claims, please contact Danette McReynolds at 916-322-8313 or via e-mail at dmcreynolds@cde.ca.gov.
If you have any questions regarding the rates or this MB, please contact your Nutrition Services Division Field Services Child Nutrition Consultant at 916-445-0850 or 800-952-5609.
