Food services recommends no meal-price increase after reserve drawdown and participation gains

York County School Division staff told the school board on June 2 they recommend keeping school meal prices unchanged for FY26, citing a sufficient reserve balance and rising student participation in school meals.

Dr. Carroll, the presenter on nutrition and finance matters, told the board, “we can recommend no increase to meal prices for next year,” noting that the division has not yet received a USDA paid-equity tool but that current reserves and participation support holding prices steady.

Carroll identified factors considered in the pricing decision: known cost increases (a scheduled 3.5 percent salary increase for staff next year and rising employer health premiums), uncertain food-price and commodity changes, and the planned end of federal supply-chain subsidization that had supported meal operations during the COVID period (Carroll said that subsidy was planned to end this school year and previously amounted to about $230,000).

Carroll reported the school nutrition fund had a surplus in excess of the division’s required three-month operating reserve and that the surplus above that three-month reserve stood at approximately $1,800,000 as of the meeting. He said the fund had been drawn down from a COVID-era high of $6,050,000 as the division used reserves to replace kitchen equipment and make capital improvements. Carroll said the division still plans roughly $1,000,000 of additional equipment spending from the reserve and that staff have been prioritizing ovens, walk-in freezers and serving lines across 18 kitchens.

Carroll said meal participation has increased—he reported 81,000 more meals were served in the two years from FY22 to FY24 (a 6.6 percent increase), and per-meal revenue rose about 3 percent over the prior year pending final totals. He also said the division will continue to monitor USDA guidance about reduced-price reimbursements and national food-sourcing rules (Carroll referenced the federal Buy American requirement and noted future percentage thresholds may change).

Carroll summarized that, given the reserve position and participation trends, the administration recommended no price increase for FY26 and will continue to monitor commodity, federal guidance and participation trends before finalizing the budget.

Board members asked whether recent or pending federal food-safety or ingredient changes (for example, limits on artificial dyes) would affect costs; Carroll said he had no information yet on implementation or price impacts and that food manufacturers and federal agencies would need to determine substitutes.

No formal vote on prices was required at the meeting; the nutrition price recommendation and reserve information were presented for board awareness and future budget planning.