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Board approves $4.12 million permanent cash transfer to food services to cover universal free meals shortfall
Summary
Board approved a permanent transfer of $4,116,393 from operating reserves to the food services funds to offset reimbursement shortfalls tied to universal free school meals.
The Hobbs Municipal Schools Board of Education approved a permanent cash transfer totaling $4,116,393 from the district’s operating reserves to its food services accounts to offset costs tied to universal free meals.
Superintendent Strickland described the action as necessary because federal reimbursements through the U.S. Department of Agriculture (USDA) have not kept pace with rising costs, including higher wages tied to the state minimum. "This permanent cash transfer will allow nutritional services to be at 0 so that we can continue to lobby PED and the legislature to make school districts whole," Strickland said, referring to the district’s plan to use reserves while seeking additional state or federal funding.
District staff said the state’s initial allocation for the program is being stretched as more districts participate, reducing each district’s share. The transfer will fund both traditional food service operations and the state-funded universal free lunch program, administrators said.
Why it matters: with universal lunch programs, districts are sometimes required to cover the gap between cost and reimbursement; the board’s vote moves local funds to keep meal services solvent for the upcoming year.
The motion to approve the transfer carried at the meeting.
