Rutherford County schools outline plan to spend down $1.43 cafeteria fund; meal debt nears $1 million

Rutherford County school officials told county committees on May 27 that the central cafeteria fund (Fund 1.43) projects $27,094,000 in revenue and $33,503,092 in expenditures and that the district will follow a plan to spend down a historically high fund balance.

“Every year, we have had a plan, and we have not necessarily spent down our fund balance, as needed, because it is a healthy fund balance, but we always have to have a plan in place to spend that down,” Dr. Sullivan, Director of Schools, told the committees.

Officials said the planned spend-down would target one‑time capital work such as new kitchen equipment and cafeteria renovations rather than recurring operating costs because of federal rules tied to USDA school meal reimbursements. Interim nutrition manager Trey Lee and Dr. Sullivan explained USDA commodities are recorded as both revenue and expenditure lines and that federal reimbursement rules limit using USDA funds to reduce lunch prices for students who are not eligible for free meals.

Commissioners pressed for specifics. Commissioner Oliver asked whether the district could use the fund to eliminate meal charges for non-eligible students; Dr. Sullivan replied, “Unfortunately, it can't,” and staff clarified USDA reimbursement rules and the community eligibility program’s eligibility limits.

Officials reported unpaid meal debt is increasing and will end the school year close to $1 million; staff said they use outreach and federal eligibility forms before pursuing any collections. The district also told commissioners it tracks meals-per-labor-hour and seeks to make cafeterias more efficient while investing in equipment and renovations at schools including Roy Waldron and La Vergne High School.

The Health & Education committee voted to approve Fund 1.43 as presented; the Budget committee later approved the same fund on roll call.