Silver Falls plans in-house food service to reduce long-running deficit, keep free-meal program

Silver Falls School District announced plans to transition food services from a contracted provider to an in-house operation beginning in the 2025–26 school year, with administrators saying the change is intended to reduce the long-running annual deficit and improve program quality.

Administrators said the district’s nutrition program has operated at an annual loss of $300,000 to $400,000 for many years, despite the community eligibility provision that provides free meals to qualifying schools. To address the deficit and improve service, the proposed budget includes funds to hire an in-house director of student wellness and achievement and support start-up costs for the district-run food service. District staff told the committee the program served roughly 325,000 meals in the current year and that bringing management in-house would shift costs from contracted services to supplies and staffing paid directly by the district.

The administration said the first year of an in-house effort would likely incur one-time start-up costs for equipment and software, and the 2025–26 budget includes an interfund transfer to support initial operations. District leaders also said they joined a purchasing cooperative to reduce food costs and to expand local sourcing options.

On revenue side, the district’s move to the community eligibility provision (CEP) changed how meal funding is recorded: some reimbursement now flows through federal and state channels rather than family payments, lowering accounts-receivable and administrative burden but shifting reimbursement proportions. Administrators warned the CEP outcome depends on state and federal rules; staff said they do not budget for a future rollback of CEP and that losing the program would increase unpaid meal concerns and administrative overhead.

Quotes and context Superintendent Kim Kellison said the in-house approach should “reduce the subsidy that transfer[s] from the general fund” and give staff more control over menus and purchasing. She added that food-service staff were “excited to try something new” and that the district expects operational improvements over time.

District food-service coordinator Elise Hansen was invited to present operational details at a future board meeting and will address logistics and cooperative purchasing options.

Discussion vs. action Committee discussion described the in-house transition as both a fiscal and quality-improvement effort; the budget includes a transfer from the general fund to support startup and initial operating adjustments. No additional tax or fee changes were proposed specifically for food services at the meeting; the overall budget approved by the committee included the interfund transfer that administrators said will reduce the long-term subsidy.

Clarifying details - Food services annual operating deficit: $300,000–$400,000 (current program history). - Meals served (current year projection): ~325,000. - Start-up and transition costs: budgeted in 2025–26 (one-time items such as software, trays, racks and equipment; amounts unspecified).

Forward look Administrators said they will report back on the in-house startup costs and operational results, and the food-service lead will present cooperative purchasing details to the school board in June.