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Lunch fund running a $23,997 deficit; board told district will transfer reserves if needed
Summary
The district reported the food-service (112) fund's expenditures exceed revenues by $23,997 year-to-date due to rising food costs and reimbursement shortfalls; administrators plan quarterly monitoring and transfers from reserve funds if necessary.
The board received a financial update showing the district's 112 lunch fund is operating at a year-to-date deficit. Finance staff reported that expenditures have exceeded revenues by $23,997 for the school year through January and attributed the shortfall largely to rising food costs and reimbursement rates that do not fully cover paid meals.
"We are at $23,997 greater in expenditures than revenue," the presenter told the board, and said the district will continue quarterly monitoring. The presenter explained that federal and state reimbursements vary by meal type (free vs. paid) and that the reimbursement for paid lunches is a fraction of the true per-meal cost.
Administrators said they plan to balance the 112 fund using general-fund transfers, building reserve funds and any recaptured funds if needed, and they will return with further quarterly updates and any recommendations for operational adjustments.
Board members discussed the pacing of expenditures across the year and noted that large upfront food orders early in the school year can exaggerate midyear deficits; the administration said they expect to reduce the loss rate in subsequent quarters but will flag any structural problems if the deficit grows.
