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Board reviews 2026 school nutrition budget; projected fund balance near state limit
Summary
District staff presented the draft 2026 school nutrition budget and meal-count estimates and warned the projected fund balance is close to the state-permitted three-month excess-cash limit.
District staff briefed the board on the draft 2026 school nutrition budget, how projected meal counts drive revenue, and why the fund balance will require monitoring.
The staff presentation explained that the district used estimated enrollments for 2025 and 2026 to produce a meal-count multiplier applied to 2025 meal counts to estimate 2026 meals. That estimated meal count was then multiplied by current reimbursement rates (the budget assumes flat federal and state reimbursement rates for 2026) to estimate nutrition program revenue.
On the expenditure side staff combined historical per-meal food costs (prepared by Jennifer Walters) and estimated labor costs (including an assumed 2% increase in the salary schedule) to build a five-page detailed budget. The projected ending fund balance for fiscal 2026 is approximately $661,000 (31.78% of the fund), while district staff noted the UFARS-derived three-month excess-cash threshold is about $694,000—roughly $30,000 higher than the projected balance.
Staff emphasized the district must monitor changes in reimbursement rates and the fund balance because UFARS rules restrict school nutrition excess cash. If the fund balance exceeds the allowable limit after year-end review by the state, funds may need to be used locally (equipment, staff compensation, allowable indirect costs) or returned to the state. The presenter noted common corrective steps: planned equipment purchases, allowable indirect-cost transfers, or adjusted compensation increases, but said no specific actions were adopted during the briefing.
Board member questions covered how "supplies" are categorized (food vs. nonfood items such as gloves and garbage bags), how inflation assumptions are handled (district staff said inflation is uncertain and they rely on historical price trends), and when a penalty would be imposed if the fund balance exceeded the allowable amount (staff said the state typically reviews year-end and any adjustment would be made after that review).
