PAID LUNCH EQUITY & REVENUE FROM NON- FEDERAL SOURCES & NON-PROGRAM FOODS SY 2017-2018 Alabama Department of Education
Agenda • Pai Paid L d Lun unch h Equi uity ty (P (PLE) ) Over ervie iew • SY 2017-18 8 PL PLE Requir equiremen ements ts • Non Non-Fed edera eral l Sour urce ces s • Non Non-Program ogram Food d Reven enue e Over ervie iew w
Paid Lunch Equity Provision ■ Intent nt – Ensure ure th that t suf ufficient cient fun unds ds are pro rovided vided to th the nonpr prof ofit it food d servic vice e accou ount nt for paid d lunc nches es. – For SF SFAs to pro rovi vide de th the same level el of suppor ort t for lunc nches es served ed to stu tudents ents who are not ot eligi gible le for free e or reduced duced price ice lunc nches. es. Why is this is Provisi vision on impor ortant tant? Avera rage ge prices ces charge ged for paid lun unches es are less s than n the cost t of produ ducin cing g those ose lunches es and these ese federal eral funds inten ended ed for free e and reduced ed price e lunches hes are used to help suppor ort t the differe erence nce bet betwee een n the paid d lun unch costs ts and nd what t the school ol receiv ives es for it. ■ *Req equires uires annual l evaluation uation of paid lunch h prices es
HHFKA directs SFAs to: 1. 1. Compar mpare e the e aver erage ge pr pric ice e charg rged ed for pa paid id lunche hes s to the e di differ erenc ence e bet etwee een the e hig igher er Fed eder eral rei eimbur ursemen sement t pr provid ided ed for r free ee lunche hes s and d the e lower er Fed eder eral Rei eimbur bursemen ement t for r pa paid id l lunche hes. s. 2. 2. If the a e aver erage ge pa paid id l lunch h pr pric ice e is is l les ess than the e di differ erenc ence, e, an S SFA must t ei either er gr gradu dually ly adj djust t aver erag age e pr pric ices es or pr provid ide e no non-Fed eder eral al fun undi ding ng to cover er the e di differ erenc ence. e.
Paid Lunch Equity School food authorities (SFAs) calculate weighted average for paid lunches and compare to the difference between free and paid reimbursement rates. Reimbur imbursement sement Wei eigh ghted ed Aver erage ge Rates es Pric Pr ice COMPARE ARE Free $3.16 $2.25 Pa Paid - .30 $2.86
Paid Lunch Equity SY 2017-18 If SFA’s average price for paid lunches is $2 $2.86 86 or or mor ore in SY 2016-17, it will be in compliance in SY 2017-18
Paid Lunch Equity SY 2017-18 If SFA’s average paid lunch price is le less ss tha han $2 $2.86 86, revenue must be increased by 2% plus 2.64%= (4.64%)
Paid Lunch Equity If SFAs As weight hted ed average age price e for paid meals ls is less s than n this is differenc erence, e, revenu nue e must st be incre reased ased by either: ther: – Increas creasing ing average rage price ce charg rged ed for paid id meals OR OR – Add dding ing non-Feder ederal al funds ds to th the food od servic vice e accou ount nt OR OR – Sp Split t calculation culation (In Incre crease se price ice for paid d meals s and d add d non-Feder ederal al Funds ds to food d service vice accoun unt) t)
Paid Lunch Equity In any year, the new average price may: Be rounde ded d down n to the nearest st 5 cents. Be limit mited ed to a maxim ximum um required uired increase ease of 10 cents ts.
Paid Lunch Equity SFAs have flexibility to determine how they distribute average price increase among their schools to reach new average price. Ori riginal inal Pri rices es New Adjus usted ed Prices es Elemen El mentar tary $2.00 00 Elemen enta tary $2.00 Middle dle $2.25 25 Middle $2.00 High $2.50 50 High $2.00
Paid Lunch Equity ■ SFAs may increase their average paid meal prices more than required amount. ■ A “credit” will be carried forward to the next school year for any amount of increase over required amount.
Pai aid d Lun unch ch Eq Equity uity SY 20 Y 2017-18 18 ■ If paid student dent lunch pric ice e is adjust usted ed, , the follo lowing wing paid lun unch h prices es must ust also so be be adjust usted: ed: – Sch School ol Employee ee – Adult ult Visitor or – Child ld Visitor or Formul rmula Value ue of USDA Minimum mum Price e Pai Paid ch Price + + Dona nated ed = Pai Paid Student udent for Adul ult Lun unch ch Reimb mbur ursem ement nt Foods oods - Lun unch Rate e Comm mmod oditi ties es
Paid Lunch Equity SY 2017-18 Adult pricing: FOR EXAMPLE: SFA raises paid lunch prices to $2.25 $2.25 +$.36 + $.2300 = $2.84 If an SFA is Safety Net: $2.25 + $.38 + $.2300 = $2.86
Pai aid d Lun unch ch Eq Equity uity SY 20 Y 2017-18 18 Adu dult lt Pr Pricing: icing: ■ If th the e SFA A is a no a non-pricin pricing g or CEP EP school chool district, trict, th then en th the ad adult lt me meal al price ce is ad adjust sted, ed, by th the e follo llowing wing formu mula: la: Formula rmula Value ue of USDA Minimum mum Price e Free ee + Dona nated ed es = for Adul ult Lun unch ch Reimb mbur ursem ement nt Comm mmod oditi ties Rate e
Paid Lunch Equity SY 2017-18 Adult pricing: For Example: Calculation For Non-pricing or CEP school districts $3.22 + $.2300 = $3.45 If the SFA is Safety Net: $3.24 + $.2300 = $3.47
Paid Lunch Equity SY 2017-18 Reven enue ue may y be incre reased ased (4 .64%) ) by: – Increas creasing ing average rage price ce charg rged ed for paid id meals OR OR – Add dding ing non-Feder ederal al funds ds to th the food od servic vice e accou ount nt OR OR – Sp Split t calculat culation ion (In Incr crea ease se price ice for paid d me meals s and d add d non-Federa ederal l Funds ds to food d servi vice ce accou ount) nt)
No Non-Fede ederal ral Fun unding ing Sour urces ces Any contribution that is for the direct support of paid lunches can be used as revenue.
Allo lowable able Non-Federal ederal Fun unding ding Sour urces ces Contributions can include: 1. Non-Federal Per-lunch reimbursements for paid lunches provided by state or local governments 2. Funds provided by organizations: PTO/PTA or community groups to support paid lunches 3. Direct payments made from school districts funds to support the lunch service. 4. Any portion of state revenue matching funds that exceed the minimum requirement provided for paid lunches.
Una Unall llowable ble Non Non-Fed eder eral al Fu Fund nding ing Sou Source ces 1. Fede 1. ederal al sour sources ces of of revenu enue 2. 2. Revenue fr from m foods so s sold ld in in comp mpetition tition wi with th lun lunches s or or wi with th Br Brea eakf kfast ast – A A la la ca carte te sales sales 3. 3. In-kind contributions: Charging for items previously provided at no cost such as: Janitorial services ■ Office supplies ■ 4. Any in-kind contributions converted to direct cash expenditures.
Unallowable Non-Federal Funding Sources ■ Any payments, including additional per-meal reimbursements, provided specifically: – For support of programs other than the School Lunch Program- Breakfast Program or other Child Nutrition Program – To support free and reduced price meals
SY 17-18 Paid Lunch Equity Tool
Tab b 2: Un Unround ounded ed Req equirement uirement Fi Finder nder
Tab 2: Un Unround ounded ed Req equirement uirement Fi Finder nder
SY 2016-2017 Report
SY 2016-2017 Report
Tab ab 8: Oc October ber 2010 0 Pai Paid Lunch ch Pr Price ce
Tab ab 8: Oc October ber 2010 0 Pai Paid Lunch ch Pr Price ce Example – SY 2010-2011 Weighted Average Price
Tab 2: Un Unrounded ounded Requ equire irement ment Fi Find nder er
Tab 2: Un Unrounded ounded Requ equire irement ment Fi Find nder er
Tab 3: SY 17-18 Price Calculator
Tab 3: SY 17-18 Price Calculator Price increase for SY 17-18
Tab 3: SY 17-18 Price Calculator Price Estimator
No No Pr Price ce Increase crease for SY Y 17-18 18 Tab 3: Pric ice e Calcu culat lator or Tab 2: Unr Unrou ounde nded d Requirem uirement nt Finder er
Tab 3: SY 17-18 Price Calculator No Pric ice e Increase ease for SY 17 17-18 18
Tab b 4: No Non-Fede ederal al Contr ontribu ibution tion Calcula lculator or
Tab b 4:Non Non-Fede ederal al Contrib ontribution ution Cal alculat culator or
Tab b 5: Spli lit t Price ce & No Non-Federal deral Cal alculat culator or
Tab ab 5: Spli lit t Pr Price ce & No Non-Federal deral Cal alculat culator or
Tab ab 6: SY 2017-20 2018 8 Wei eigh ghted ed Aver erag age e Pr Pric icin ing g Rep eport
Tab ab 6: SY 2017-20 2018 8 Wei eigh ghted ed Aver erag age e Pr Pric icin ing g Rep eport
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