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2007-08 Reimbursement Rates

This Management Bulletin (MB) reiterates the annual reimbursement rates to School Nutrition Programs (SNPs) for the 2007-08 school year. We originally sent this information to you via e-mail and posted it to the California Department of Education (CDE) Web site at the end of August 2007.

Included with this MB (DOC; 68KB; 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 2007-08 California State Budget and related legislation for the State Meal Program. These reimbursement rates are effective July 1, 2007, through June 30, 2008. All of the current and prior year reimbursement rates are available on the following CDE Web site:

http://www.cde.ca.gov/ls/nu/rs/

Notable Highlights From 2006-07

• The federal reimbursement rate per half pint of milk was increased for the first time in three years.
• The federal rates for free and reduced-price meals and snacks have increased.
• The Commodity Entitlement Rate is $0.1875 per meal, which does not include the  requirement for a  12 percent provision in Federal support (a combined figure of $0.1875 plus the 12 percent provision equals an estimated $0.2084 per meal).
• The state meal reimbursement rate increased by more than $0.06 per free and reduced-price lunch  and breakfast, the largest state meal reimbursement increase in about 30 years. This higher rate was accompanied by new nutrition standards related to fats and oils, as explained briefly on the next page.
• The federal reimbursement rates for paid lunches, breakfasts, and snacks have remained  level at $0.25 (for agencies serving 60 percent or more free and reduced-price lunches in FY 2005-06) and   $0.23 (for agencies serving less than 60 percent free and reduced-price lunches in FY 2005-06), $0.24, and $0.06, respectively.

Note: The CDE Fiscal and Administrative Services Division distributed the 2007-08 Reimbursement Calculation Worksheets at the end of July 2007, which include the federal reimbursement rates for the 2007-08 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 on the following CDE Web site:

http://www.cde.ca.gov/fg/aa/nt/documents/snpcalcwrksht.doc (Note: The preceeding link is no longer valid.)

State Meal Rate and Mandatory Funding Criteria for 2007-08

The 2007-08 State Budget and subsequent legislation increased state meal reimbursement funding to $0.2195 per free and reduced-price lunch/breakfast served for public educational agencies. (Although the State Meal rate was set in statute as $0.21, the 2006 Budget Act only appropriated funding sufficient to cover a reimbursement rate of $0.1563.)

Please note that new legislation ties nutrition standards to this year’s and subsequent year’s State Meal funding. Schools must ensure that foods served through the meal program:

1. Have not in any way been deep fried, par fried, or flash fried by a school or school district.
2. Do not contain artificial trans fat. A food item contains artificial trans fat if it contains vegetable shortening, margarine, or any kind of hydrogenated or partially hydrogenated vegetable oil, unless the manufacturer's documentation or the label required on the food, pursuant to applicable federal and    state law, lists the trans fat content as less than 0.5 gram per serving.
3. Have not been deep fried, par fried, or flash fried in an unpermitted oil or fat as part of the manufacturing process. Prohibited oils and fats include, but are not limited to, palm, coconut, palm kernel, lard, or those typically solid at room temperature and known to negatively impact cardiovascular health. Permitted oils include, but are not limited to, canola, safflower, sunflower, corn, olive, soybean, peanut, or a blend of these oils, or those typically liquid at room temperature and known for their positive cardiovascular benefit.

Schools and school districts shall certify compliance to the NSD no later than June 30, 2008. While districts are not required to certify compliance until June 30, 2008, it is important that districts comply with the above standards as soon as possible and feasible within this school year.

Recognizing the complexity of these changes, the NSD will be providing school districts with additional clarification and information regarding the new nutrition standards and certification process.

Where to Direct Questions

Where to direct questions: For questions regarding the SNP calculation worksheets or monthly reimbursement claims, please contact Jackie Quenga at 916-322-8313 or via e-mail at jquenga@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.