District staff say food-service spending up $800K over seven years; state rules limit how surplus can be used

Cassie (speaker 6) told the board the food-service fund has grown: "in 2018, 2019, we spent just over $1,000,000 on food. And last year in 24-25, we spent almost 1,800,000," reflecting an approximate $800,000 increase over seven years. Board members probed whether the district could use fund surpluses to add higher-cost menu items or equipment and were told state and federal reimbursement increases have raised revenues but do not remove state limits on retained balances.

District staff explained the state evaluates food cost percentages and recommends spending roughly 30to40% of revenue on food; exceeding those thresholds or changing fund usage would likely require state-level approvals. The administration also emphasized equipment investments (service-line and cooking equipment) are a driver of increased capacity to offer scratch-cooked items, but said regulatory and per-meal-nutritional requirements constrain how quickly surplus funds can be spent on higher-cost items.

Board members asked for clearer guidance about the maximum allowable fund balance and whether the district can seek permission to increase per-meal spending. Staff agreed to follow up with a more detailed breakdown of the food-service fund, potential state approval pathways and the equipment investment plan.