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California Department of Education News Release
Release: #11-74
September 26, 2011
Contact: Pam Slater
E-mail: communications@cde.ca.gov
Phone: 916-319-0818

The California Department of Education Announces Fee Reduction
for Child Nutrition Program Agencies Receiving USDA Foods

SACRAMENTO—Creating a potential savings of $1 million a year for school districts, the California Department of Education's (CDE) Food Distribution Program (FDP) announced Monday that shipping, handling, and administrative fees charged in the distribution of U.S. Department of Agriculture food goods will be reduced by 20 percent beginning October 1.

"With the financial emergency facing our schools, it's more important than ever to contain costs and pass those savings to where they will do the most good—our schools and classrooms," said State Superintendent of Public Instruction Tom Torlakson.

Torlakson said the Department has worked to reassess fees charged to district food service programs to make sure they are no greater than the bare minimum required to sustain the program.

"We've estimated that districts statewide could realize a total savings of up to $1 million a year through this adjustment. In an economy like the one we have today, every dollar saved makes a difference,” he said.

The 20 percent reduction encompasses all food shipped via State Distribution Centers as well as administrative fees assessed by the FDP for shipments of U.S. Department of Agriculture foods sent directly to recipient agencies.

"We have upgraded warehouse services, modernized equipment, such as trucks and trailers, and installed software that has allowed us to more efficiently administer the Food Distribution Program and pass savings along to school districts," Torlakson said.

Over the past few years, the FDP has implemented technologies such as the Child Nutrition Information and Payment System and Invetrak, an automated bar-coding system, which have helped streamline ordering, billing, and the management and tracking of inventory.

Here is a chart displaying the new rates:

Agency Type Fee Type Rate
Warehouse Agency

USDA Foods delivered by SDCs

$2.60

Warehouse Agency

USDA Foods picked up by agencies

$2.20

Warehouse Agency

USDA Foods sent to processors (administrative fee)

$0.80

Warehouse Agency

Department of Defense (DOD) produce delivered

$2.60

State Cooperative (Co-op) Member

USDA Foods delivered by SDCs

$2.60

State Cooperative (Co-op) Member

USDA Foods sent to processors

$0.80

State Cooperative (Co-op) Member

DOD produce delivered (South State Co-op)

$2.60

State Cooperative (Co-op) Member

DOD produce administrative fee (North State Co-op)

$0.10

Direct Ship (DS) and Private Co-ops

USDA Foods sent to processors/distributors

$0.80

Direct Ship (DS) and Private Co-ops

USDA Foods delivered to DS/processors by SDCs

$2.60

Direct Ship (DS) and Private Co-ops

USDA Foods picked up by DS/processors at SDCs

$2.20

Direct Ship (DS) and Private Co-ops

DOD produce (administrative fee)

$0.10

# # # #

Tom Torlakson — State Superintendent of Public Instruction
Communications Division, Room 5206, 916-319-0818, Fax 916-319-0100

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