White County school nutrition director warns fund balance is shrinking as federal reimbursements lag food costs

White County Schools’ nutrition supervisor, Tanya Savage, told the school board May 27 that the district’s School Nutrition Program remains federally financed under the Community Eligibility Provision but is drawing down its fund balance as food and labor costs rise.

Savage said CEP means “all students in White County Schools eat free,” which removes student-paid charges from the program’s revenue mix. She discussed other revenue lines that support meals, including projected a la carte sales of about $42,000 next year, USDA commodity entitlement and a Department of Defense produce purchasing program that typically supplies roughly $100,000–$110,000 in fresh produce for the district annually.

Why it matters: the nutrition fund is separate from the general-purpose school fund and operates primarily on reimbursements for meals served. Savage and board members flagged a projected decline in the fund’s balance that could persist if costs outpace reimbursements, and they noted the program must maintain a three-month operating fund balance under applicable rules.

Savage walked the board through how federal and state streams feed the program and where costs are concentrated. She said commodity entitlement and rebate programs help offset purchases but are largely “in kind” and do not appear as cash in the same way as meal reimbursements. On fresh produce she said, “I usually put a hundred thousand, hundred and 10 thousand into fresh produce that we buy throughout the year.”

Board members asked about specific line items. Savage said prior equipment grants temporarily boosted “USDA other” revenues last year, explaining a decline to $60,000 projected next year compared with roughly $183,000 in the most recent actual year. She also described plans to reintroduce limited a la carte sales at the middle and high schools to help offset costs and reduce prior lunch debt issues, noting federal “smart snack” rules constrain what can be sold.

Savage described operational adjustments she made after reviewing meals-per-labor-hour metrics: due to decreased enrollment and participation patterns, she trimmed some staff hours and eliminated one middle-school position earlier in the year. She said those changes and a study of labor productivity contributed to a decrease in projected cafeteria personnel costs for 2025–26.

The supervisor emphasized summer feeding and community outreach: the district expanded summer meal pick-up and partnerships with the YMCA and other programs; Savage said parents can now pick up multiple breakfasts and lunches per child due to recent federal flexibilities, and that 544 students were signed up for a forthcoming large pick-up event.

On reserves and risk, Savage and Finance staff flagged a multi-year burn-down of the program’s fund balance. The budget materials show a starting fund balance around $2.0 million on July 1, 2023 and a projected balance of about $870,000 by mid‑2026. Savage said by law the program must hold a three‑month fund balance in operating expenses and that she is “hopeful it levels off,” but she cautioned that reimbursement rates have not risen in step with food and labor costs.

No formal action was taken; the School Nutrition Program budget was presented for information and will be part of the district’s formal budget adoption process at the board’s regular meeting later in the week.

Board members asked for continued monitoring and noted the possibility that, if the trend continues, some costs may need to be shifted to the general-purpose fund or otherwise addressed in future budget cycles.