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Audit finds many students counted for at‑risk funding may not meet free‑lunch income rules; auditors recommend rethinking funding basis
Summary
A Legislative Post Audit found that income-based verification of free-lunch applications suggests a sizable share of applicants may not meet income eligibility and estimated the state likely overpaid $38 million–$53 million in at‑risk funding for 2023–24; auditors warned limits in verifying directly certified students and recommended legislative review of at‑risk allocation.
Heidi Zimmerman, a principal auditor at Legislative Post Audit, told a senate committee that the number of students used to determine at‑risk funding based on free‑lunch counts “appears to be significantly more than the number of students who may be eligible for the free lunch program.”
Zimmerman summarized a random verification of 769 students who qualified for free lunch during the 2023–24 school year. The audit focused on students who qualified by submitting a National School Lunch Program application (about 16% of free‑lunch qualifiers). Auditors matched application data to state tax and wage records when available and found 68 of 108 matched applications did not appear to meet the income eligibility thresholds; 45 of those were at least 50% over the threshold, and roughly half of that subgroup reported household incomes above…
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