[Federal Register Volume 59, Number 128 (Wednesday, July 6, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-16293]
[[Page Unknown]]
[Federal Register: July 6, 1994]
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DEPARTMENT OF AGRICULTURE
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 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 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 milk reflects changes in the Producer Price
Index for Fluid Milk Products. These payments and rates are in effect
from July 1, 1994 through June 30, 1995.
EFFECTIVE DATE: July 1, 1994.
FOR FURTHER INFORMATION CONTACT:
Robert M. Eadie, Chief, Policy and Program Development Branch, Child
Nutrition Division, FN, 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
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 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 OMB review in accordance with the Paperwork
Reduction Act of 1980 (44 U.S.C. 3507).
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.
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, 1994 to June 30, 1995, 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
11.00 cents. This reflects no change over the current reimbursement
rate because the Producer Price Index for Fluid Milk Products (Code
0231) from May 1993 to May 1994 (from a level of 120.6 in May 1993 to
121.1 in May 1994) did not change significantly enough to trigger a
change in the reimbursement rate.
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
section 11 of the National School Lunch Act, as amended (42 U.S.C.
1759a), and section 4 of the Child Nutrition Act of 1966, as amended
(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 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, 1994 through June 30, 1995 reflect
a 1.7 percent increase in the Price Index during the 12-month period
May 1993 to May 1994 (from a level of 142.9 in May 1993 to 145.3 in May
1994).
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, 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.
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, 1995. 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 the Pacific Territories 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 1992-93, the payments are:
Contiguous States--17 cents, maximum rate 25.00 cents; Alaska--
27.25 cents, maximum rate 39.25; Hawaii--19.75 cents, maximum rate
29.00 cents.
In school food authorities which served 60 percent or more free and
reduced-price lunches in School Year 1992-93, payments are:
Contiguous States--19.00 cents, maximum rate 25.00 cents; Alaska--
29.25 cents, maximum rate 39.25 cents; Hawaii--21.75 cents, maximum
rate 29.00 cents.
Section 11 National Average Payment Factors--Contiguous States--
free lunch--158.75 cents, reduced-price lunch 118.75 cents; Alaska--
free lunch 257.25 cents, reduced-price lunch 217.25 cents; Hawaii--free
lunch 185.75 cents, reduced-price lunch 145.75 cents.
School Breakfast Program Payments
For schools ``not in severe need'' the payments are:
Contiguous States--free breakfast 97.50 cents, reduced-price
breakfast 67.50 cents, paid breakfast 19.25 cents; Alaska--free
breakfast 154.50 cents, reduced-price breakfast 124.50 cents, paid
breakfast 27.50 cents; Hawaii--free breakfast 113.15 cents, reduced-
price breakfast 83.25 cents, paid breakfast 21.50 cents.
For schools in ``severe need'' the payments are:
Contiguous States--free breakfast 116.00 cents, reduced-price
breakfast 86.00 cents, paid breakfast 19.25 cents; Alaska--free
breakfast 184.25 cents, reduced-price breakfast 154.25 cents, paid
breakfast 27.50 cents; Hawaii--free breakfast 134.75 cents, reduced-
price breakfast 104.75 cents, paid breakfast 21.50 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 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 the Pacific
Territories 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, 1994-
June 30, 1995]
Less than 60% or Maximum
National school lunch program* 60% more rate
Contiguous States:
Paid............................... .1700 .1900 .2500
Reduced Price...................... 1.3575 1.3775 1.5275
Free............................... 1.7575 1.7775 1.9275
Alaska:
Paid............................... .2725 .2925 .3925
Reduced Price...................... 2.4450 2.4650 2.7100
Free............................... 2.8450 2.8650 3.1100
Hawaii:
Paid............................... .1975 .2175 .2900
Reduced Price...................... 1.6550 1.6750 1.8525
Free............................... 2.0550 2.0750 2.2525
Non-
School breakfast program: severe Severe
need need
Contiguous States:
Paid.......................................... .1925 .1925
Reduced Price................................. .6750 .8600
Free.......................................... .9750 1.1600
Alaska:
Paid.......................................... .2750 .2750
Reduced Price................................. 1.2450 1.5425
Free.......................................... 1.5450 1.8425
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Special milk program All milk Paid milk Free milk
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Pricing Programs $.11 N/A N/A
Without Free Option.
Pricing Programs with N/A $.11 Average cost \1/
Free Option. 2\ pint milk.
Nonpricing Programs... $.11 N/A N/A
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*Payments listed for Free & Reduced Price Lunches include both sections
4 and 11 funds. Lunch rates do not include the current entitlement
commodity (or cash-in-lieu) value of an additional $.145 per meal.
Authority: Sections 4, 8, and 11 of the National School Lunch
Act, as amended (42 U.S.C. 1753, 1757, 1759(a)) and sections 3 and
4(b) of the Child Nutrition Act, as amended (42 U.S.C. 1772 and 42
U.S.C. 1773).
Dated: June 29, 1994.
William E. Ludwig,
Administrator.
[FR Doc. 94-16293 Filed 7-5-94; 8:45 am]
BILLING CODE 3410-30-M
