AStudent Nutrition Paid Meal Price Increase

Student nutrition’s mission is to provide healthy, satisfying meals to students in support of education.  The Student Nutrition Department is requesting a paid meal price increase to do this.  Price increases provide financial resources that support changing menus, commodities reduction, and inflation-adjusted costs.  Price increases also support full compliance with the U.S. Department of Agriculture’s Paid Lunch Equity calculation.

Federal Regulations at 7 CFR §210.14(e) require school food authorities (SFAs) participating in the National School Lunch Program to ensure sufficient funds are provided to the nonprofit school food service account for meals served to students not eligible for free or reduced priced meals.  There are two ways to meet this requirement: either through the prices charged for “paid” meals or through other non-federal sources provided to the nonprofit school food service account.

Currently, the District meets the Paid Lunch Equity requirements by subsidizing the Food Service Fund with a transfer from the General Fund, which constitutes “other non-Federal sources per the PLE requirements.

Over the past four years, the District’s General Fund has subsidized the Food Serve Fund on an average of $800,000 annually.  However, in an effort to reduce the District’s FY23 transfer from the General Fund, it is reasonable for the Board to consider a “paid” meal price increase at this time.

Paid lunches are reimbursed $0.66 per meal, whereas free lunches are reimbursed $5.96, a difference of $5.30 (SY21-22 rates).

Paid breakfasts are reimbursed $0.50 per meal, whereas free breakfasts are reimbursed $3.78, a difference of $3.28 (SY21-22 rates).

Students are eligible to receive milk included with all federally reimbursed meals.  Milk sold separately from a reimbursed meal will remain at $0.85 for white or chocolate milk.  Adult meals are non-reimbursable and sold without milk included.

Students eligible for free meals receive their first lunch and breakfast (where offered) at no charge.  Students eligible for reduced-price meals are entitled to their first lunch for $0.40 and no charge breakfast (where offered).

Students enrolled at a Community Eligibility Provision school receive their first lunch and breakfast at no charge.

Second meals are offered when available and at the paid meal price, regardless of eligibility.

The proposed meal price increase would have an estimated $95,393.00 impact on revenue based on SY2018-2019 Paid meal counts.

The average increase for Student Nutrition food in SY21-22 was 14.23% and for supplies 39.47% over SY19-20.  With the continuing escalation of freight cost and the significant rise in raw materials, we expect to see our cost go higher, as in one instance our school sporks cost will be rising 70-100% starting May 16.

The last time the School Board adjusted meal prices was in August of  2017.  However, before the meal price adjustment in 2017, the District maintained “paid” meal prices for (5) five consecutive years.  Therefore, the administration is recommending the following adjustments to “paid” meal prices, effective with the 2022-2023 school year:

Proposed paid students and adult meal prices for SY 2022-2023 are outlined in the attached chart.

Comparison charts of Kenai Peninsula Borough School District meal prices show that we are at or below the other four large Alaska Districts Student Nutrition programs with our proposed meal price increase.

Alaska Districts Proposed 2023 Breakfast Pricing Comparisons

Alaska Districts Proposed 2023 Lunch Pricing Comparisons