Nutrition Inc. projects $44,000 high-school loss; district plans budget vote amid federal reimbursement uncertainty
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Summary
Nutrition Inc. presented two food-service budgets on April 8: a projected $44,000 loss at the high school and roughly $9,700 profit across the district's other schools. Presenters warned of uncertain USDA commodity support, potential supply-chain disruptions (eggs), and said the budgets will go to the board's April voting session for approval.
Fletcher Volmer, regional manager for Nutrition Inc., presented proposed food-service budgets for the 2025–26 school year at the Lower Moreland School District board meeting on April 8.
Volmer said the separate high school budget — the high school is not on the National School Lunch Program — carries an expected $44,000 loss under conservative assumptions. A second budget covering Pine Road, Murray Avenue and the middle/secondary school showed a projected $9,700 profit. Volmer said Nutrition Inc. uses conservative assumptions (including a 5% projected food-cost increase) and that final results will depend on actual food prices and federal reimbursements.
Volmer and on-site manager Lance Leon described revenue sources and cost pressures: a la carte sales, internal catering income, wage increases for hourly staff (modeled at roughly 3%), and uncertainty about commodity support. "Right now, the commodity rate is 30¢ per meal," Volmer said, noting USDA commodity program uncertainty and that some commodities may be affected by policy or supply issues. He also cited recent supply disruptions affecting eggs.
Board members asked about participation in the free breakfast program and reimbursement risks. Volmer estimated participation at about 18% across the district but noted participation varies by building; district staff said some buildings are reporting between 25% and 35% breakfast participation and that breakfast participation has increased since the governor's free-breakfast initiative. Volmer said the district has been sharing monthly participation reports in board materials.
District staff noted the district maintains a food-service fund balance (Volmer said the food-service fund had about $1.1 million) and that the district is required to manage that balance under state guidance. Volmer said Nutrition Inc. has had the district contract since a five-year bid award last year (one-year initial term with four one-year renewals available) and that the company believes the proposed lunch prices and participation levels will allow the program to meet its operating targets; final adoption requires board approval at the April voting meeting and subsequent state reporting.
Next steps: the presented budgets will be placed on the April voting agenda. Staff will continue sharing monthly participation reports and work with Nutrition Inc. to monitor commodity availability and federal reimbursement updates.
