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Higher meal reimbursements spared food fund this year; district budgets $900,000 transfer as contingency
Summary
Staff told the board higher state meal reimbursement rates covered food service operations in 24–25 so no transfer was needed; staff nevertheless budgeted a $900,000 contingency for 25–26 in case rates change midyear.
Gerardo Cruz said the state's meal reimbursement levels in effect for 2024–25 fully covered the district's cafeteria operations, allowing the food service fund to remain solvent without a general‑fund transfer for the year.
Cruz explained the state reimburses districts monthly (typically with a 1–2 month delay) and that because of uncertainty about whether those rates will remain, staff conservatively included a $900,000 transfer for 25–26. "The higher meal reimbursement rates allow for school districts across the state... to offer a free breakfast as well as a free lunch," Cruz said. He added staff will monitor reimbursements and, if appropriate, remove or reduce the transfer in subsequent interim budget revisions.
