The state budget and inflation and its impact on OMSD

Ontario-Montclair School District is facing the facts when it comes to meeting state nutrition standards.

"Increased nutrition standards mean increase costs," said Stephanie Bruce, the district's food and nutrition services director.

During a presentation at Thursday's board meeting, Bruce talked about how the state budget and inflation is affecting food and nutrition services.

The district has seen a growth of 7 percent in students who participate in the state's School Breakfast Program, and a 14 percent increase participation in the National Student Lunch Program, from the 2007-08 school year.

Bruce said as these numbers continue to increase it is important school meals be balanced, health and appealing, all while meeting increased nutrition standards.

Here is more information from March 19 meeting:

The Facts:

School Breakfast

Increasing participation is School Breakfast Program

4,800 children served daily

7.33 percent growth from 2007-08

864,000 breakfasts served annually

22 percent of kids don't eat breakfast.

29 percent of OMSD students participate in the School Breakfast Program.

School Lunch:

Increasing participation in National Student Lunch Program

17,000 children served daily

74 percent participation

85 percent Eligible

14.17 percent growth from 2007-08

100 percent of OMSD schools participate in NSLP

3.06 million lunches served annually

The facts cont...

School meals must be balanced, healthy and appealing.

Must meet increased nutrition standards.

Limiting fat, saturated fat and zero trans fats in meals.

Providing one-third of the Recommended Dietary Allowance of protein, calcium, iron, and vitamins A and C for lunch and 1/4 for breakfast. 

Snacks must be whole grain and meet 35-10-35 and 175 calories for elementary and 250 calories for middle.

Provide more fresh fruits and vegetables.

Incorporate more whole grains in meal program.

Funding:

OMSD Nutrition Services will only be Self Sufficient until the end of 2008-2009

The best school nutrition programs are self-funded and do not rely on the districts general fund.

Financial support comes from federal reimbursements of $2.59 for each free meal, $2.19 for reduced meals, and $0.26 cents for a paid meal.

California provides an additional reimbursement of $0.22 cents for every free and reduced meal.

Revenue comes from students paying for meals as well:

Middle schools pay $1.75 for lunch

Elementary pay $1.50. 

Breakfast is $0.75 for all grades.

Program Revenues are Decreasing:

Federal Reimbursement (effective 7/1/08)

-2.59 for every Free meal served

-2.19 for every Reduced meal served

-0.26 for every Paid meal served

State Reimbursement (effective 7/1/08)

-0.22 for Free and Reduced: approximately $600,000/yearly

Commodity Entitlement - decreased from 19.5 cents to 17.5 cents to 14.5 cents per meal served. 

A la Carte Sales were eliminated due to increased nutrition standards: Approximately lose of $250,000 yearly.

Expenses:

-47 percent of Nutrition Services expenses is food cost.

-Food cost has increased 10% due to adding choices, more protein and some fresh fruits and vegetables. All food and paper costs have increased this year by 10%.

-44 percent of Nutrition Services expenses is salaries and benefits.

-9 percent is equipment replacement/repair, utilities, training, indirect costs and supplies. 

Operating costs are increasing:

Food costs increased 30 percent since 2006. Five percent this year alone.

Fuel Delivery costs went up drastically.

Labor costs

Equipment costs

Indirect costs (decrease federal reimbursement from 2.59 to 2.39)

The future:

Lower State reimbursements affect the program.

Required to serve perishable, higher cost foods like fresh fruits/vegetables, whole grains and less processed foods to continue to combat childhood obesity.

Increasing participation in School Breakfast to help students learn more improve test scores.

Modernize remaining school kitchens and student eating areas to match recently modernized facilities in attracting students to eat convenient nutritious meals during their day.