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2008-09 SNP Reimbursement Rates


Nutrition Services Division Management Bulletin

Purpose: Policy, Beneficial Information

To: School Nutrition Program Sponsors

Number: NSD-SNP-09-2008

Attention: Food Service Director and Business Official

Date: November 2008

Subject: Reimbursement Rates for the National School Lunch, School Breakfast, State Meal, and Special Milk Programs for School Year 2008-09

Reference: Federal Register, Volume 73, Number 130, July 07, 2008; and 2008-09 California State Budget Act (Assembly Bills 1781 and 88, Chapters 268-269, Statutes of 2008); and California Education Code sections 49430, 49430.5, and 49430.7

This Management Bulletin (MB) reiterates and updates the annual reimbursement rates to School Nutrition Programs (SNPs) for the 2008-09 school year. We originally sent this information to you via e-mail and posted it to the California Department of Education (CDE) Web page at the end of July 2008, but with this bulletin, we are adding State reimbursement rate information.

Included with this MB are 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. The 2008-09 State Meal rate of $0.2195 for the State Meal Program and sponsors of federal meal programs for the free and reduced-price meals served to eligible students is subject to the 2008-09 State budget, which was signed into law on September 23, 2008. The national average commodity value per lunch is $0.2075.

The annual payments and rates adjustments for the National School Lunch and School Breakfast Programs reflect changes in the Food Away From Home series of the Consumer Price Index for All Urban Consumers. The annual rate adjustment for the Special Milk Program reflects changes in the Producer Price Index for Fluid Milk Products. All of the reimbursement rates (current and prior year) are available on the California Department of Education (CDE) Rates, Eligibility Scales, and Funding Web page at http://www.cde.ca.gov/ls/nu/rs/.

The CDE Fiscal and Administrative Services Division distributed the 2008-09 Reimbursement Calculation Worksheets earlier this year, which included the federal reimbursement rates for the 2008-09 school year. These forms assist SNP sponsors in preparing budgets for their programs by calculating expected monthly reimbursement by type of program/funding.

Copies of the Reimbursement Calculation Worksheet may be obtained by contacting Jackie Quenga, Child Nutrition Fiscal Services, at 916-322-8313 or by e-mail at jquenga@cde.ca.gov.

State Meal Rate and Mandatory Funding Criteria for 2008-09

Please note that Senate Bill 80 (Chapter 174, Statutes of 2007), now Education Code sections 49430, 49430.5 and 49430.7, tie nutrition standards to this year’s and subsequent years’ State Meal funding. To receive State Meal reimbursement for school year 2008-09, public schools, school districts, and county offices of education had to ensure compliance by June 30, 2008, that foods served through school nutrition programs:

  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.

As a result of Assembly Bill 2057 (Chapter 223, Statutes of 2008), schools and school districts must now certify compliance with the requirements above to the CDE no later than June 30 annually in order to receive State Meal reimbursement for the following school year. The CDE will be asking your district/agency to certify compliance in spring 2009.

Additional Budget Information

The 2008 Budget Act, as amended, does not provide for a cost of living increase for State Meal reimbursement; therefore, the State Meal reimbursement rate for each free and reduced-price breakfast and lunch served in Proposition (Prop) 98 agencies (public charter schools, school districts, and county offices of education), and within the federal school nutrition programs will remain at $0.2195.

Please note that the appropriation for Prop 98 agencies does not appear sufficient to fund all eligible meals throughout the entire school year, and the CDE anticipates there will be a need to reduce this rate to approximately $0.05 per meal for the claiming months of May 2009 and June 2009. This rate may change again, as we progress through the year and accrue actual meal count data.

The appropriation for State Meal reimbursement for non-Prop 98 child nutrition sponsors was reduced by approximately 11 percent from last year, which results in a per meal rate of $0.1566. Again, we may find it necessary to reduce this rate further if actual meals served appear to be exceeding our initial projection. The CDE will update sponsors as this data becomes available.

In summary, the 2008-09 State Meal reimbursement rates apply as follows (see attached rate sheet for further details) for each free and reduced-price breakfast and lunch served at:

Agency Status Rate
Prop 98 LEAs participating in federal school nutrition programs, with annual Certification* $0.2195
Prop 98 LEAs participating in federal school nutrition programs, without annual Certification $0.0000
Non-Prop LEAs participating in federal school nutrition programs $0.1566

*It is anticipated that this rate will be reduced for May and June 2009 claims.

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.

Attachment

2008-09 SNP Reimbursement Rates at http://www.cde.ca.gov/ls/nu/sn/documents/mbnsdsnp092008att.doc

Questions:   Nutrition Services Division | 800-952-5609
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