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School district warns of 19.66% drop in food‑service fund as costs rise
Summary
The district projects a 19.66% drop in the food‑service fund because food costs are outpacing reimbursements, despite participation in the Community Eligibility Provision that provides free meals to all students.
During the budget presentation, Business Manager Alexander Muir said the district participates in the Community Eligibility Provision (CEP), which allows the district to serve free breakfast and lunch to all students. He told the board that, "in the budget column, in the last column, we are projected to have a 19.66% drop in fund balance," attributing the decline to food costs growing faster than program revenue.
Board members pressed staff about how reimbursements relate to vendor contracts. A board member explained that "our reimbursement isn't necessarily aligned with" vendor prices and that some programs and snacks are paid locally or through activity accounts, creating a gap between reimbursements and actual outlays. Administrators said they would continue to examine vendor pricing and reimbursement rates.
District staff flagged the shortfall as a driver of potential program and service adjustments if costs remain elevated and revenues do not catch up.
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