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Child nutrition fund faces $2.7M deficit largely from fuel and supply costs, CFO says
Summary
CFO Buchanan said the child nutrition program is projected to run a $2.7 million deficit for 2026–27 driven primarily by higher food commodity and delivery fuel costs; fund balance is projected to decline to about $6.7 million by June 2027 under current assumptions.
The Lamar Consolidated ISD child nutrition fund is projected to show a $2.7 million deficit for the 2026–27 school year, CFO Mr. Buchanan told the board on May 19.
Buchanan attributed most of the shortfall to rising fuel costs that affect both delivery and farm operations, increasing produce prices and shipping fees. "Fuel cost is hitting us both for deliveries and for the food itself," he said. He explained that the district receives many point‑drop deliveries directly to campuses, which increases the district's exposure to delivery cost inflation.
The CFO said the child nutrition fund had a balance of about $12.7 million at the end of August 2024, drew down $3.3 million the following year, and with the projected deficit would leave an estimated $6.7 million by June 2027. He noted that the program is majority federal‑funded and that the district expects to manage the program without reducing the fund balance in the current year but that the deficit projection will drive future decisions about pricing, procurement and operational adjustments.
