Finance panel warns Nashua food‑service fund would be in the red without March receipts

Miss Degray, who presented the district's special‑revenue reports to the Finance & Operations Committee on April 20, said the food‑service fund (account 2100) was showing a negative balance of about $447,000 as of March 31 because March revenue had not yet been recorded.

"The negative $447,000 that is sitting there currently — what we are missing is the revenue coming in for March," Miss Degray said, adding that the district expects roughly $370,000 for March to be posted to the account. She described the food‑service fund as a self‑sustaining special‑revenue account that may not be transferred into the operating budget except under specific procedures.

Why this matters: If the March receipts fall short or other costs continue to rise, the operating budget would need to cover food‑service costs the fund cannot absorb. Miss Degray told the committee she is monitoring food costs, wages and benefits and will provide updates if the account remains in the red.

Details: Miss Degray said the district recently changed meal accounting to comply with a state regulation that limits food‑service fund balances to roughly three months of revenue and observed that food costs and benefit elections have pushed expenses higher. She gave monthly revenue examples: about $287,000 in January and $248,000 in February, with March expected to be roughly $370,000 because there were more school days in March.

The committee also discussed how travel and student‑activity charges flow through district cards. Miss Degray highlighted a large March travel charge — roughly $20,007.50 — that paid travel costs for DECA students attending nationals; the district fronts travel and is reimbursed from student‑activity accounts.

Members pressed on food waste and reimbursable‑meal requirements. "Mary Benoit is our food service director," Miss Degray said; she and her team track inventory rotation, frozen‑goods turnover and vendor ordering to minimize waste. Dr. Andrade added that USDA/state reimbursement rules require certain meal components for a reimbursable meal, which can lead to whole components (such as fruit) being discarded even when part of the tray is consumed.

Price discussion and equity concerns: Committee members asked whether raising adult or paid‑student meal prices could close the gap. Miss Degray said elementary paid lunches are $2.75 and adult meals now run about $5–$6 after last year's increase. One member suggested raising the adult meal to $10 to generate revenue; other members cautioned that higher adult or paid‑student prices can disproportionately affect lower‑wage staff and families. The group discussed tradeoffs, noting that a universal free‑meal program would move costs to the operating budget and carry a significant price tag.

Next steps: Miss Degray said she will continue to monitor the account, meet regularly with the food‑service director and issue a monthly forecast in May showing where the fund is likely to end the fiscal year. If the food‑service fund closes in deficit, the district would consider operating‑budget offsets and report back to the committee.

The Finance & Operations Committee did not take final action on the food‑service account during the April 20 meeting; Miss Degray will return with updates as part of the district's May forecasting process.