[Federal Register Volume 62, Number 134 (Monday, July 14, 1997)]
[Notices]
[Pages 37702-37703]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-18521]
[[Page 37701]]
_______________________________________________________________________
Part V
Department of Agriculture
_______________________________________________________________________
Food and Consumer Service
_______________________________________________________________________
Child Nutrition Programs: Child and Adult Care Food Program--National
Average Payment Rates; Day Care Home Food Service Payment Rates Etc.,
and National School Lunch, Special Milk, and School Breakfast Programs;
Reimbursement Rates; Notices
Federal Register / Vol. 62, No. 134 / Monday, July 14, 1997 /
Notices
[[Page 37702]]
=======================================================================
-----------------------------------------------------------------------
DEPARTMENT OF AGRICULTURE
Food and Consumer Service
Child and Adult Care Food Program: National Average Payment
Rates, Day Care Home Food Service Payment Rates, and Administrative
Reimbursement Rates for Sponsors of Day Care Homes for the Period July
1, 1997-June 30, 1998
AGENCY: Food and Consumer Service, USDA.
ACTION: Notice.
-----------------------------------------------------------------------
SUMMARY: This notice announces the annual adjustments to the national
average payment rates for meals served in child care, outside-school-
hours care and adult day care centers; the food service payment rates
for meals served in day care homes; and the administrative
reimbursement rates for sponsors of day care homes to reflect changes
in the Consumer Price Index. Further adjustments are made to these
rates to reflect the higher costs of providing meals in the States of
Alaska and Hawaii. The adjustments contained in this notice are
required by the statutes and regulations governing the Child and Adult
Care Food Program (CACFP).
EFFECTIVE DATE: July 1, 1997.
FOR FURTHER INFORMATION CONTACT: Robert M. Eadie, Branch Chief, Policy
and Program Development Branch, Child Nutrition Division, Food and
Consumer Service, USDA, Alexandria, Virginia 22302, (703) 305-2620.
SUPPLEMENTARY INFORMATION: This program is listed in the Catalog of
Federal Domestic Assistance under No. 10.558 and is 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 final rule related notice published at 48 FR 29114, June
24, 1983.)
This notice imposes no new reporting or recordkeeping provisions
that are subject to Office of Management and Budget review in
accordance with the Paperwork Reduction Act of 1995 (44 U.S.C. 3501-
3518).
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.
Definitions
The terms used in this notice shall have the meanings ascribed to
them in the regulations governing the CACFP (7 CFR Part 226).
Background
Pursuant to Sections 4, 11 and 17 of the National School Lunch Act
(NSLA) (42 U.S.C. Secs. 1753, 1759a and 1766), Section 4 of the Child
Nutrition Act of 1966 (42 U.S.C. Sec. 1773) and Sections 226.4, 226.12
and 226.13 of the regulations governing the CACFP (7 CFR Part 226),
notice is hereby given of the new payment rates for participating
institutions. These rates shall be in effect during the period July 1,
1997 through June 30, 1998.
As provided for under the NSLA and the Child Nutrition Act of 1966,
all rates in the CACFP must be revised annually on July 1 to reflect
changes in the Consumer Price Index for the most recent 12-month
period. In accordance with this mandate, the Department last published
the adjusted national average payment rates for centers, the food
service payment rates for day care homes and the administrative
reimbursement rates for sponsors of day care homes on July 11, 1996 at
61 FR 36545 (for the period July 1, 1996-June 30, 1997).
Section 704(b)of the Personal Responsibility and Work Opportunity
Reconciliation Act of 1996, P.L. 104-193, enacted August 22, 1996,
amends Sec. 11a(3)(B) of the National School Lunch Act (42 U.S.C.
Sec. 1759a(a)(3)(B) and changes the method for computing the annual
adjustments to the national average payment rates for meals and
supplements served to non-needy children in day care centers. Effective
July 1, 1997, the annual adjustments to the payment rates for paid
meals and paid supplements, will be rounded down to the nearest whole
cent. The annual adjustments to the payments for free and reduced price
meals and to the payments for free and reduced price supplements were
unchanged by Pub.L. 104-193 and continue to be rounded up or down to
the nearest one-fourth cent.
Section 708(e)(1) of Pub.L. 104-193, also amended section
17(f)(3)(A) of the NSLA to establish two ``tiers'' of day care homes
and reimbursement rates. Pursuant to these amendments, tier I homes are
those that are located in low-income areas or those in which the
provider's household income is at or below 185 percent of the Federal
income poverty guidelines. Tier II homes are those which do not meet
the location or provider income criteria for a tier I home. However,
tier II homes may receive the tier I rates for meals served to
identified income-eligible children (i.e. children from households with
incomes at or below 185 percent of the Federal income poverty
guidelines).
Pub. L. 104-193 further specified in section 17 (f)(3)(A)(ii) (III)
and (IV) the reimbursement factors for meals served in tier I day care
homes as the factors in effect on July 1, 1996, with adjustments made
to the factors on July 1, 1997, and each July 1 thereafter. Pub. L.
104-193 further provided in section 17(f)(3)(A)(ii)(IV) and
(iii)(I)(bb) (42 U.S.C. Sec. 1766(f)(3)(A)(ii)(IV) and (iii)(I)(bb)) of
the NSLA that the factors paid to tier I and tier II homes be rounded
down to the nearest whole cent, instead of rounding the factors up or
down to the nearest quarter-cent increment as previously required.
Subsequent adjustments must be based on the unrounded rate from the
preceding school year. In addition, annual adjustments, which were
previously based on changes in the Consumer Price Index for food away
from home, must now be made based on the Consumer Price Index for food
at home.
Please note that, reimbursement rates for tier II family day care
homes are set forth in section 17(f)(3)(A)(iii)(I)(aa) of the NSLA (42
U.S.C. Secs. 1766(f)(3)(A)(iii)(I)(aa), as amended by section 708(e)(1)
of P.L. 104-193. After these reimbursement rates were adjusted and
rounded down to the nearest whole cent as required under the law, an
additional six cents was added to the breakfast rate as required by
section 4(b)(3) of the Child Nutrition Act of 1966, as amended (42
U.S.C. 1773(b)(3)). The Child Nutrition Act requires that all
reimbursement rates for breakfasts served under the School Breakfast
Program and the CACFP be adjusted upward by six cents. As background,
this addition was first made in 1986, under Pub. L. 99-500, the School
Lunch and Child Nutrition Amendments of 1986, which added three cents
to adjusted breakfast rates to assist States in improving the
nutritional quality of the breakfasts and this adjustment was raised
from three cents to six cents in 1989 under Pub. L. 101-147, the Child
Nutrition and WIC Reauthorization Act of 1989, for the same reason.
The payment rates for the period July 1, 1997-June 30, 1998 are:
All States Except Alaska and Hawaii
Meals Served in Centers--Per Meal Rates in Dollars or Fractions thereof:
Breakfasts:
Paid...................................................... .20
Free...................................................... 1.0450
Reduced................................................... .7450
Lunches and Suppers: \1\
Paid...................................................... .18
[[Page 37703]]
Free...................................................... 1.8900
Reduced................................................... 1.4900
Supplements:
Paid...................................................... .04
Free...................................................... .5175
Reduced................................................... .2600
\1\ These rates do not include the value of commodities (or cash-in-lieu
of commodities) which institutions receive as additional assistance
for each lunch or supper served to participants under the program.
Notices announcing the value of commodities and cash-in-lieu of
commodities are published separately in the Federal Register.
------------------------------------------------------------------------
Tier I Tier II
------------------------------------------------------------------------
Meals Served in DAY CARE HOMES--Per Meal Rates in Dollars or Fractions
thereof:
Breakfasts...................................... .88 .33
Lunches and Suppers............................. 1.62 .98
Supplements..................................... .48 .13
------------------------------------------------------------------------
Administrative Reimbursement Rates for Sponsoring Organizations of Day
Care Homes--Per Home/Per Month Rates in Dollars:
Initial 50 day care homes...................................... 75
Next 150 day care homes........................................ 57
Next 800 day care homes........................................ 45
Additional day care homes...................................... 39
Pursuant to Section 12(f) of the NSLA (42 U.S.C. 1760(f)), the
Department adjusts the payment rates for participating institutions in
the States of Alaska and Hawaii. The new payment rates for Alaska are
as follows:
Alaska
Meals Served in Centers--Per Meal Rates in Dollars or Fractions thereof:
Breakfasts:
Paid...................................................... .29
Free...................................................... 1.6575
Reduced................................................... 1.3575
Lunches and Suppers: \1\
Paid...................................................... .29
Free...................................................... 3.06
Reduced................................................... 2.66
Supplements:
Paid...................................................... .07
Free...................................................... .8400
Reduced................................................... .4200
\1\ These rates do not include the value of commodities (or cash-in-lieu
of commodities) which institutions receive as additional assistance
for each lunch or supper served to participants under the program.
Notices announcing the value of commodities and cash-in-lieu of
commodities are published separately in the Federal Register.
------------------------------------------------------------------------
Tier I Tier II
------------------------------------------------------------------------
Meals Served in Day Care Homes--Per Meal Rates in Dollars or Fractions
thereof:
Breakfasts...................................... 1.40 .51
Lunches and Suppers............................. 2.63 1.58
Supplements..................................... .78 .21
------------------------------------------------------------------------
Administrative Reimbursement Rates for Sponsoring Organizations of Day
Care Homes--Per Home/Per Month Rates in Dollars:
Initial 50 day care homes...................................... 121
Next 150 day care homes........................................ 92
Next 800 day care homes........................................ 72
Additional day care homes...................................... 64
The new payment rates for Hawaii are as follows:
Hawaii
Meals Served in Centers--Per Meal Rates in Dollars or Fractions thereof:
Breakfasts:
Paid...................................................... .22
Free...................................................... 1.2125
Reduced................................................... .9125
Lunches and Suppers: \1\
Paid...................................................... .21
Free...................................................... 2.21
Reduced................................................... 1.81
Supplements:
Paid...................................................... .05
Free...................................................... .6075
Reduced................................................... .3025
\1\These rates do not include the value of commodities (or cash-in-lieu
of commodities) which institutions receive as additional assistance
for each lunch or supper served to participants under the program.
Notices announcing the value of commodities and cash-in-lieu of
commodities are published separately in the Federal Register.
Meals Served in DAY CARE HOMES--Per Meal Rates in Dollars or Fractions
thereof:
Breakfasts...................................... 1.02 .38
Lunches and Suppers............................. 1.90 1.14
Supplements..................................... .56 .15
Administrative Reimbursement Rates for Sponsoring Organizations of Day
Care Homes--Per Home/Per Month Rates in Dollars:
Initial 50 day care homes...................................... 88
Next 150 day care homes........................................ 67
Next 800 day care homes........................................ 52
Additional day care homes...................................... 46
The changes in the national average payment rates for centers
reflect a 2.83 percent increase during the 12-month period May 1996 to
May 1997 (from 152.0 in May 1996 to 156.3 in May 1997) 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 food service payment rates for day care homes
reflect a 3.21 percent increase during the 12-month period May 1996 to
May 1997 (from 152.6 in May 1996 to 157.5 in May 1997) in the food at
home series of the Consumer Price Index for All Urban Consumers.
The changes in the administrative reimbursement rates for
sponsoring organizations of day care homes reflect a 2.23 percent
increase during the 12-month period May 1996 to May 1997 (from 156.6 in
May 1996 to 160.1 in May 1997) in the series for all items of the
Consumer Price Index for All Urban Consumers, published by the Bureau
of Labor Statistics of the Department of Labor.
The total amount of payments available to each State agency for
distribution to institutions participating in the program is based on
the rates contained in this notice.
Authority: Sections 4(b)(2), 11a, 17(c) and 17(f)(3)(B) of the
National School Lunch Act, as amended (42 U.S.C. 1753(b)(2), 1759a,
1766(f)(3)(B)) and section 4(b)(1)(B) of the Child Nutrition Act of
1966, as amended (42 U.S.C. 1773(b)(1)(B)).
Dated: July 9, 1997.
William Ludwig,
Administrator.
[FR Doc. 97-18521 Filed 7-11-97; 8:45 am]
BILLING CODE 3410-30-P
