Mister Shirley (Speaker 4) opened a food-service briefing by explaining the National School Lunch Program and School Breakfast Program are federally funded and administered under U.S. Department of Agriculture guidance. He said the district must provide balanced meals daily and maintain a nonprofit food-service account in line with federal rules to receive reimbursements and USDA foods.

Shirley outlined eligibility categories the district uses for free, reduced and paid meals, citing direct certification avenues (SNAP, TANF, foster status and other categorical eligibility). He said Pennsylvania Department of Education guidance (PDE) increasingly treats reduced-price eligibility as equivalent to free for some administrative purposes. He also described revenue classifications: reimbursable "program" meals versus nonprogram sales (a la carte, adult meals), and said federal guidance governs the entire food-service account when federal funds are used.

The presentation included reimbursement and local-pricing figures the presenter gave as examples: USDA reimbursement rates were cited for free, reduced and paid lunches; the presenter said elementary paid lunch prices are $3.15 and secondary prices are $3.30 and that the state made breakfast free for all students. Shirley told members the district historically receives the majority of food-service revenue from federal sources with local and state supplements.

On reserves and allowable spending, Shirley said USDA defines excess funds as amounts above a roughly three-month operating limit and prohibits using federal food-service funds to buy land or buildings. He estimated the district's food-service excess balance at about $710,000 and said staff plan to default that balance toward equipment purchases and operational improvements unless members direct otherwise.

During discussion members asked about the district's change in food-service operator (the presenter said the district took over the operator in 2021 and saw a resulting spike in account balances). Shirley also reminded members that USDA requires a local meal-charge policy (policy 808) and that districts participating in federal programs cannot deny a reimbursable meal to a student based on inability to pay.