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Nutrition program ran a deficit in FY25; board to consider program staffing and potential rate or budget changes
Summary
The district’s food-service program ended FY25 with a net loss (about $214,000) and an opening balance of roughly $575,920; administrators flagged the program’s staffing costs are currently in the program budget and suggested possible reallocation to the general fund to stabilize finances.
Business Office staff presented the school nutrition financial report for fiscal 2025. The program’s total income for the year was roughly $1.7 million (family payments, a la carte, adult sales, and federal/state reimbursements). Total expenses (food, labor, supplies, utilities, maintenance, equipment) exceeded income, and the program recorded a loss of about $214,000 for the year. The program began the year with an opening balance of $575,920, which helped absorb the loss.
Payne and the board discussed causes: participation trends, commodity and supply costs, and the program’s current structure, which places the food-service director and some related positions on the program budget rather than the general fund. Payne said other districts sometimes budget administrative positions outside the program to reduce program deficits; the board may consider reallocating salary lines to the general fund to improve program self-sufficiency.
Payne also noted some state reimbursements and grants (for example, fresh fruit and vegetable funding at Soul School) contributed to revenue this year. Participation counts were modestly higher year‑over‑year in some months and the program is fully staffed for the coming year.
Why it matters: The national school meal program expects self‑sustaining school nutrition operations outside federal reimbursements. A persistent deficit may require rate increases, reallocation of administrative salaries to the general fund, or one-time transfers; the board should consider options before the next fiscal year.
