Sioux Falls board hears nutrition report as state bill would make reduced-price meals free

Gay Anderson, who presented the district’s Child Nutrition Services update, told the Sioux Falls School District board on March 9 that the program serves more than 15,000 lunches and more than 5,000 breakfasts each school day and had provided over 2.2 million meal equivalents through the end of February.

Anderson said the district’s free-and-reduced rate stands at 48.15 percent and that 11,824 students currently receive free meals under existing qualifications; community partners are covering meals for an additional 408 students. She said unpaid meal balances have become more manageable compared with increases two to three years ago.

“And two, three years ago, we were going up by $3,000 a day,” Anderson said, describing how the district has reduced that pressure. She gave raw food-cost figures: the average breakfast food cost is $1.88 (federal reimbursement for a free breakfast $2.94) and the average lunch food cost is $2.56 (federal reimbursement $4.70). Anderson said offer-vs-serve practices reduce waste and lower costs by roughly 25 percent when students do not take every item on a tray.

Anderson also briefed the board on House Bill 1082, which she said passed the legislature and would have the State of South Dakota cover the cost for students currently eligible for reduced-price meals. “The bill will have the state of South Dakota cover the cost of meals for all students who are qualified for reduced meals,” Anderson said, adding that the administrative steps remained before full implementation. District officials said the change would shift district spending from meal subsidies toward food and equipment investments.

The report turned to federal changes looming in the Dietary Guidelines for Americans and anticipated USDA/HHS rulemaking. Anderson said the guidelines emphasize more protein, whole foods and reduced added sugars; school-manufactured K–12 products will require time to adapt and additional funding has not been confirmed. “The other major area of concern is additional funding so it can help out the programs operate as mandated,” she said.

District staff estimated preliminary equipment and implementation upgrades for elementary schools could cost about $350,000–$400,000 to enable scratch or speed-scratch cooking and some hot-breakfast options. Anderson said the district is considering training, partnerships and possible hiring (for example, a chef or consultant) to support the transition while keeping food safety and budget sustainability in focus.

Board members asked clarifying questions about what “scratch” cooking would mean in practice and whether reimbursement rates will increase with the new guidelines; Anderson said meetings with federal staff indicated no additional funding was yet planned and that manufacturers and districts will need time to adapt. She urged the board to acknowledge the report, which the board later approved by voice vote.

The update also included operational notes: the district will run six open summer meal sites May 28–Aug. 7, will operate other short summer programs, and will contract to provide breakfast, lunch and evening snacks for the Boys & Girls Club at George McGovern Middle School under another federal meal program.

The board will monitor the state’s implementation of HB 1082, federal rulemaking on dietary guidance, and the district’s equipment and training needs as staff refine cost estimates and implementation plans.