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District explores Community Eligibility Program but finance model would reduce reimbursements, staff warn
Summary
Nutrition staff explained the federal Community Eligibility Provision (CEP), described how the district's direct-certification rate and the USDA multiplier (1.6) determine reimbursements, and said the district could qualify but would face a substantial monthly shortfall (estimated near $190,000 a month under current formulas).
District nutrition staff briefed the board on the Community Eligibility Provision (CEP) and the financial trade-offs the program would create under current federal and state calculations.
Stacy (nutrition services) explained CEP eligibility: buildings or a district qualify if at least 25 percent of students are direct certified (not based on free-and-reduced applications). That percentage is multiplied by 1.6 to produce the claimable free-meal percentage used for state reimbursement calculations. Stacy said the district's direct-certification percentage on April 1 last year was 34.215 percent; using the current calculator yields a claimed free percentage shown in staff materials (75.95% in the example provided).
Staff described how CEP changes reimbursements: under CEP, all students would receive free meals at the point of service, but the district would claim a smaller portion of meals at the higher free-reimbursement rate and a larger portion at the lower paid-reimbursement rate. Nutrition staff gave reimbursement figures in the briefing: roughly $4.54 per free meal and about $0.50 per paid meal (figures presented as approximate). Staff said those differences make CEP costly for the district under the current formula and reimbursement rates.
Stacy and Becky (nutrition staff) said, therefore, that while the district could meet the 25 percent direct-certification threshold and qualify for CEP, the current formula and reimbursement levels would likely cost the district — staff used a figure in the meeting of about $190,000 per month as a rough, program-level shortfall under CEP as currently calculated. Staff recommended running additional scenarios and said they will provide more detailed financial modeling if the board wants further analysis. The board did not make a decision at the work session; staff said they can produce scenario runs and consider advocacy or letters to DESE/USDA about formula changes.
