[Federal Register Volume 63, Number 127 (Thursday, July 2, 1998)]
[Notices]
[Pages 36202-36205]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-17675]
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DEPARTMENT OF AGRICULTURE
Food and Nutrition Service
National School Lunch, Special Milk, and School Breakfast
Programs; National Average Payments/Maximum Reimbursement Rates
AGENCY: Food and Nutrition Service, USDA.
ACTION: Notice.
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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, 1998 through June 30,
1999.
EFFECTIVE DATE: July 1, 1998.
FOR FURTHER INFORMATION CONTACT: Robert M. Eadie, Chief, Policy and
Program Development Branch, Child Nutrition Division, FNS, USDA,
Alexandria, Virginia 22302, (703) 305-2620.
SUPPLEMENTARY INFORMATION: 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.
In accordance with the Paperwork Reduction Act of 1995 (44 U.S.C.
3507), no new recordkeeping or reporting requirements have been
included that are subject to approval from the Office of Management and
Budget.
This action is exempted from review by the Office of Management and
Budget under Executive Order 12866.
National School Lunch, School Breakfast and Special Milk 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.)
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, 1998 to June 30, 1999, 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
13.00 cents. This reflects an increase of 4.65 percent in the Producer
Price Index for Fluid Milk Products (Code 0231) from May 1997 to May
1998 (from a level of 135.4 in May 1997 to 141.7 in May 1998).
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 schools and residential child care institutions for the period July
1, 1998 through June 30, 1999 reflect a 2.75 percent increase in the
Price Index during the 12-month period May 1997 to May 1998 (from a
level of 156.3 in May 1997 to 160.6 in May 1998).
Section 704(b) of the Personal Responsibility and Work Opportunity
Reconciliation Act of 1996, P.L. 104-193, enacted August 22, 1996,
amended section 11(a)(3)(B) of the National School Lunch Act (42 U.S.C.
1759a (a)(3)(B)) and changed the method for computing the annual
adjustments to the national average payment rates for meals and
supplements served to nonneedy children. Effective July 1, 1997, the
annual adjustments to the payment rates for paid meals under Section 4
of the National School Lunch Act (42 U.S.C. 1753), and Section 4 of the
Child Nutrition Act of 1966 (42 U.S.C. 1773) and paid supplements under
Section 17(c) of the National School Lunch Act (42 U.S.C. 1766(c)),
authorized under Section 11 (a)(3)(B) of the National School Lunch Act,
is rounded down to the nearest whole cent. The annual adjustments to
the Section 4 payments for free and reduced price meals and to the
Section 17(c) payments for free and reduced price supplements, were
unchanged by P.L. 104-193 and are rounded up or down to the nearest
one-fourth cent.
Lunch Payment Levels
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. The National School Lunch Act provides two
different Section 4 payment levels for lunches served under the
National School Lunch Program. The lower payment level 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 level applies to lunches served by school food
authorities in which 60 percent or more of the lunches served
[[Page 36203]]
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 are to ensure equitable disbursement of Federal funds to school
food authorities.
Meal Supplement Payments in Afterschool Care Programs
Section 17A of the National School Lunch Act (42 U.S.C. 1766a)
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 (42 U.S.C. 1773)
establishes National Average Payment Factors for free, reduced price
and paid breakfasts served under the School Breakfast Program and
additional payments for free and reduced price breakfasts served in
schools determined to be in ``severe need'' because they serve a high
percentage of needy children.
Revised Payments
The following specific Section 4, Section 11 and Section 17A
National Average Payment Factors and maximum reimbursement rates for
lunch, the after-school supplement rates and breakfast rates are in
effect from July 1, 1998 through June 30, 1999. 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 1996-97, the payments for
meals served are: Contiguous States--paid rate--18 cents, free and
reduced price rate--18.75 cents, maximum rate--26 cents; Alaska--paid
rate--30 cents, free and reduced price rate--30.25 cents, maximum
rate--40 cents; Hawaii--paid rate--21 cents, free and reduced price
rate--21.75 cents, maximum rate--30 cents.
In school food authorities which served 60 percent or more free and
reduced price lunches in School Year 1996-97, payments are: Contiguous
States--paid rate--20 cents, free and reduced price rate--20.75 cents,
maximum rate--26 cents; Alaska--paid rate--32 cents, free and reduced
price rate--32.25 cents, maximum rate--40 cents; Hawaii--paid rate--23
cents, free and reduced price rate--23.75 cents, maximum rate--30
cents.
Section 11 National Average Payment Factors
Contiguous States--free lunch--175.50 cents, reduced price lunch--
135.50 cents; Alaska--free lunch--284.25 cents, reduced price lunch--
244.25 cents; Hawaii--free lunch--205.25 cents, reduced price lunch--
165.25 cents.
Meal Supplements in Afterschool Care Programs--The payments are:
Contiguous States--free supplement--53.25 cents, reduced price
supplement--26.75 cents, paid supplement--4 cents; Alaska--free
supplement--86.25 cents, reduced price supplement--43.25 cents, paid
supplement--7 cents; Hawaii--free supplement--62.25 cents, reduced
price supplement--31.25 cents, paid supplement--5 cents.
School Breakfast Program Payments
For schools ``not in severe need'' the payments are: Contiguous
States--free breakfast--107.25 cents, reduced price breakfast--77.25
cents, paid breakfast--20 cents; Alaska--free breakfast--170 cents,
reduced price breakfast--140 cents, paid breakfast--29 cents; Hawaii--
free breakfast--124.50 cents, reduced price breakfast--94.50 cents,
paid breakfast--23 cents.
For schools in ``severe need'' the payments are: Contiguous
States--free breakfast--127.75 cents, reduced price breakfast--97.75
cents, paid breakfast--20 cents; Alaska--free breakfast--203 cents,
reduced price breakfast--173 cents, paid breakfast--29 cents; Hawaii--
free breakfast--148.25 cents, reduced price breakfast--118.25 cents,
paid breakfast--23 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.
BILLING CODE 3410-30-U
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[GRAPHIC] [TIFF OMITTED] TN02JY98.024
BILLING CODE 3410-30-C
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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: June 26, 1998.
George A. Braley,
Acting Administrator.
[FR Doc. 98-17675 Filed 7-1-98; 8:45 am]
BILLING CODE 3410-30-U
