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Staff warns food service fund balance could fall to zero in a few years despite expanded free‑meal eligibility
Summary
District staff said the food service fund’s beginning balance has declined since pandemic NSLP waivers ended and projected that, without changes, the fund balance could reach zero in 2–3 years; they also noted Oregon’s expanded income program will increase state revenue for free meals at some schools.
Budget staff told the committee the food service fund has been drawing down balances since the end of NSLP waivers and that, if current trends continue, the fund could approach zero in 2–3 years. The presentation cited a higher projected state restricted grant amount tied to Oregon’s expanded income program that will expand opportunities for families to access free meals at additional schools (for example, Oak Creek was added).
Mr. Kessel noted the district will either need additional participation/revenue or general‑fund transfers to avoid deficits; staff said recent increases in meal participation and improved menus have helped revenue, but rising food costs are increasing supply and materials expenses. Staff said transfers from the general fund have covered bad‑debt expense in recent years and that food‑service operating deficits would require board discussion if the trend continues.
