[Federal Register Volume 61, Number 134 (Thursday, July 11, 1996)]
[Notices]
[Pages 36547-36549]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-17670]
-----------------------------------------------------------------------
DEPARTMENT OF AGRICULTURE
National School Lunch, Special Milk, and School Breakfast
Programs; National Average Payments/Maximum Reimbursement Rates
AGENCY: Food and Consumer Service, USDA.
ACTION: Notice.
-----------------------------------------------------------------------
SUMMARY: This Notice announces the annual adjustments to: (1) The
``national average payments,'' the amount of money the Federal
Government provides States for lunches, meal supplements and breakfasts
served to children participating in the National School Lunch and
School Breakfast Programs; (2) the ``maximum reimbursement rates,'' the
maximum per lunch rate from Federal funds that a State can provide a
school food authority for lunches served to children participating in
the National School Lunch Program; and (3) the rate of reimbursement
for a half-pint of milk served to nonneedy children in a school or
institution which participates in the Special Milk Program for
Children. The payments and rates are prescribed on an annual basis each
July. 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. These
payments and rates are in effect from July 1, 1996 through June 30,
1997.
EFFECTIVE DATE: July 1, 1996.
FOR FURTHER INFORMATION CONTACT: Robert M. Eadie, Chief, Policy and
Program Development Branch, Child Nutrition Division, FCS, USDA,
Alexandria, Virginia 22302, (703) 305-2620.
SUPPLEMENTARY INFORMATION: These programs are listed in the Catalog of
Federal Domestic Assistance under No. 10.553, No. 10.555 and No.
10.556, respectively, and are subject to the provisions of Executive
Order 12372, which requires intergovernmental consultation with State
and local officials. (See 7 CFR Part 3015, Subpart V, and the final
rule related notice published at 48 FR 29114, June 24, 1983.)
This action is not a rule as defined by the Regulatory Flexibility
Act (5 U.S.C. 601-612) and thus is exempt from the provisions of that
Act. This notice has been determined to be exempt under Executive Order
12866. In accordance with the Paperwork Reduction Act of 1995 (44
U.S.C. 3501-3520), no new recordkeeping or reporting requirements have
been included that are subject to approval from the Office of
Management and Budget.
Background
Special Milk Program for Children
Pursuant to section 3 of the Child Nutrition Act of 1966, as
amended (42 U.S.C. 1772), the Department announces the rate of
reimbursement for a half-pint of milk served to nonneedy children in a
school or institution which participates in the Special Milk Program
for Children. This rate is adjusted annually to reflect changes in the
Producer Price Index for Fluid Milk Products (Code 0231), published by
the Bureau of Labor Statistics of the Department of Labor.
For the period July 1, 1996 to June 30, 1997, the rate of
reimbursement for a half-pint of milk served to a nonneedy child in a
school or institution which participates in the Special Milk Program is
12.25 cents. This reflects an increase of 8.96 percent in the Producer
Price Index for Fluid Milk Products (Code 0231) from May 1995 to May
1996 (from a level of 122.8 in May 1995 to 133.8 in May 1996).
As a reminder, schools or institutions with pricing programs which
elect to serve milk free to eligible children continue to receive the
average cost of a half-pint of milk (the total cost of all milk
purchased during the claim period divided by the total number of
purchased half-pints) for each half-pint served to an eligible child.
National School Lunch and School Breakfast Programs
Pursuant to sections 11 and 17A of the National School Lunch Act,
(42 U.S.C. 1759a and 1766a), and section 4 of the Child Nutrition Act
of 1966, (42 U.S.C. 1773), the Department annually announces the
adjustments to the National Average Payment Factors and to the maximum
Federal reimbursement rates for meals and supplements served to
children participating in the National School Lunch Program.
Adjustments are prescribed each July 1, based on changes in the Food
Away From Home series of the Consumer Price Index for All Urban
Consumers, published by the Bureau of Labor Statistics of the
Department of Labor. The changes in the national average payment rates
for
[[Page 36548]]
schools and residential child care institutions for the period July 1,
1996 through June 30, 1997 reflect a 2.29 percent increase in the Price
Index during the 12-month period May 1995 to May 1996 (from a level of
148.6 in May 1995 to 152.00 in May 1996).
Lunch Payment Factors
Section 4 of the National School Lunch Act (42 U.S.C. 1753)
provides general cash for food assistance payments to States to assist
schools in purchasing food. There are two section 4 National Average
Payment Factors for lunches served under the National School Lunch
Program. The lower payment factor applies to lunches served by school
food authorities in which less than 60 percent of the lunches served in
the school lunch program during the second preceding school year were
served free or at a reduced price. The higher payment factor applies to
lunches served by school food authorities in which 60 percent or more
of the lunches served during the second preceding school year were
served free or at a reduced price. To supplement these section 4
payments, section 11 of the National School Lunch Act provides special
cash assistance payments to aid schools in providing free and reduced
price lunches. The section 11 National Average Payment Factor for each
reduced price lunch served is set at 40 cents less than the factor for
each free lunch.
As authorized under sections 8 and 11 of the National School Lunch
Act (42 U.S.C. 1757, 1759a), maximum reimbursement rates for each type
of lunch are prescribed by the Department in this Notice. These maximum
rates ensure equitable disbursement of Federal funds to school food
authorities.
Meal Supplement Payments in Afterschool Care Programs
Section 17A (42 U.S.C. 1766a) of the National School Lunch Act
authorizes elementary and secondary schools to be reimbursed for meal
supplements as part of the National School Lunch Program if they meet
the following requirements (1) Operate school lunch programs under the
National School Lunch Act; (2) sponsor afterschool care programs; and
(3) were participating in the Child and Adult Care Food Program as of
May 15, 1989. The reimbursement rates for supplements served in
Afterschool Care Programs under the National School Lunch Program are
the same as the rates for supplements served in centers under the Child
and Adult Care Food Program.
Breakfast Payment Factors
Section 4 of the Child Nutrition Act of 1966 establishes National
Average Payment Factors for free, reduced price and paid breakfasts
served under the School Breakfast Program and additional payments for
schools determined to be in ``severe need'' because they serve a high
percentage of needy children.
Revised Payments
The following specific section 4 and section 11 National Average
Payment Factors and maximum reimbursement rates are in effect through
June 30, 1997. Due to a higher cost of living, the average payments and
maximum reimbursements for Alaska and Hawaii are higher than those for
all other States. The District of Columbia, Virgin Islands, Puerto Rico
and Guam use the figures specified for the contiguous States.
National School Lunch Program Payments
Section 4 National Average Payment Factors--In school food
authorities which served less than 60 percent free and reduced price
lunches in School Year 1994-95, the payments are:
Contiguous States--17.75 cents, maximum rate 25.75 cents; Alaska--
28.50 cents, maximum rate 40.50 cents; Hawaii--20.75 cents, maximum
rate 29.75 cents.
In school food authorities which served 60 percent or more free and
reduced price lunches in School Year 1994-95, payments are: Contiguous
States--19.75 cents, maximum rate 25.75 cents; Alaska--30.50 cents,
maximum rate 40.50 cents; Hawaii 22.75 cents, maximum rate 29.75 cents.
Section 11 National Average Payment Factors--Contiguous States--
free lunch--166.00 cents, reduced price lunch 126.00 cents; Alaska--
free lunch 269.00 cents, reduced price lunch 229.00 cents; Hawaii--free
lunch 194.25 cents, reduced price lunch 154.25 cents.
Meal Supplements in Afterschool Care Programs--The payments are:
Contiguous States--free supplement--50.50 cents, reduced price
supplement --25.25 cents, paid supplement--4.50 cents; Alaska--free
supplement--81.75 cents, reduced price supplement--40.75 cents, paid
supplement--7.50 cents; Hawaii--free supplement--59.00 cents, reduced
price supplement--29.50 cents, paid supplement--5.50 cents.
School Breakfast Program Payments
For schools ``not in severe need'' the payments are: Contiguous
States--free breakfast 101.75 cents, reduced price breakfast 71.75
cents, paid breakfast 19.75 cents; Alaska--free breakfast 161.25 cents,
reduced price breakfast 131.25 cents, paid breakfast 28.50 cents;
Hawaii--free breakfast 118.25 cents, reduced price breakfast 88.25
cents, paid breakfast 22.25 cents.
For schools in ``severe need'' the payments are: Contiguous
States--free breakfast 121.25 cents, reduced price breakfast 91.25
cents, paid breakfast 19.75 cents; Alaska--free breakfast 192.50 cents,
reduced price breakfast 162.50 cents, paid breakfast 28.50 cents;
Hawaii--free breakfast 140.75 cents, reduced price breakfast 110.75
cents, paid breakfast 22.25 cents.
Payment Chart
The following chart illustrates: the lunch National Average Payment
Factors with the sections 4 and 11 already combined to indicate the per
meal amount; the maximum lunch reimbursement rates; the reimbursement
rates for meal supplements served in afterschool care programs; the
breakfast National Average Payment Factors including ``severe need''
schools; and the milk reimbursement rate. All amounts are expressed in
dollars or fractions thereof. The payment factors and reimbursement
rates used for the District of Columbia, Virgin Islands, Puerto Rico
and Guam are those specified for the contiguous States.
School Programs--Meal and Milk Payments to States and School Food Authorities
[Expressed in Dollars or Fractions Thereof, Effective from July 1, 1996-June 30, 1997]
----------------------------------------------------------------------------------------------------------------
Less than Maximum
National school lunch program \1\ 60% 60% or more rate
----------------------------------------------------------------------------------------------------------------
Paid........................... $.1775 $.1975 $.2575
Contiguous States....................... Reduced price.................. 1.4375 1.4575 1.6075
Free........................... 1.8375 1.8575 2.0075
Paid........................... .2850 .3050 .4050
Alaska.................................. Reduced price.................. 2.5750 2.5950 2.8400
[[Page 36549]]
Free........................... 2.9750 2.9950 3.2400
Paid........................... .2075 .2275 .2975
Hawaii.................................. Reduced price.................. 1.7500 1.7700 1.9450
Free........................... 2.1500 2.1700 2.3450
----------------------------------------------------------------------------------------------------------------
School breakfast
(1) Non-severe Severe
program
(1)need need
----------------------------------------------------------------------------------------------------------------
Paid...........................
(1) $.1975 $.1975.........................
Contiguous States....................... Reduced price..................
(1) .7175 .9125..........................
Free...........................
(1)1.0175 1.2125.........................
Paid...........................
(1) .2850 .2850..........................
Alaska.................................. Reduced price..................
(1)1.3125 1.6250.........................
Free...........................
(1)1.6125 1.9250.........................
Paid...........................
(1) .2225 .2225..........................
Hawaii.................................. Reduced price..................
(1) .8825 1.1075.........................
Free...........................
(1)1.1825 1.4075.........................
----------------------------------------------------------------------------------------------------------------
Special milk program All milk Paid milk Free milk
----------------------------------------------------------------------------------------------------------------
Pricing programs without free option..................................... .1225 N/A N/A
Pricing programs with free option........................................ N/A .1225 (\2\)
Nonpricing programs...................................................... .1225 N/A N/A
Supplements served in afterschool care programs
----------------------------------------------------------------------------------------------------------------
Paid.......................... .0450
Contiguous States...................... Reduced price................. .2525
Free.......................... .5050
Paid.......................... .0750
Alaska................................. Reduced price................. .4075
Free.......................... .8175
Paid.......................... .0550
Hawaii................................. Reduced price................. .2950
Free.......................... .5900
\1\ Payments listed for Free & Reduced Price Lunches include both sections 4 and 11 funds.
\2\ Average cost \1/2\ pint milk.
Authority: Sections 4, 8, 11 and 17A of the National School
Lunch Act, as amended, (42 U.S.C. 1753, 1757, 1759a, 1766a) and
sections 3 and 4(b) of the Child Nutrition Act, as amended, (42
U.S.C. 1772 and 42 U.S.C. 1773(b)).
Dated: July 3, 1996.
William E. Ludwig,
Administrator.
[FR Doc. 96-17670 Filed 7-10-96; 8:45 am]
BILLING CODE 3410-30-P
