[Federal Register Volume 59, Number 128 (Wednesday, July 6, 1994)] [Unknown Section] [Page 0] From the Federal Register Online via the Government Publishing Office [www.gpo.gov] [FR Doc No: 94-16293] [[Page Unknown]] [Federal Register: July 6, 1994] ----------------------------------------------------------------------- DEPARTMENT OF AGRICULTURE National School Lunch, Special Milk, and School Breakfast Programs; National Average Payments/Maximum Reimbursement Rates AGENCY: Food and Nutrition Service, USDA. ACTION: Notice. ----------------------------------------------------------------------- SUMMARY: This Notice announces the annual adjustments to: (1) The ``national average payments,'' the amount of money the Federal Government provides States for lunches and breakfasts served to children participating in the National School Lunch and School Breakfast Programs; (2) the ``maximum reimbursement rates,'' the maximum per lunch rate from Federal funds that a State can provide a school food authority for lunches served to children participating in the National School Lunch Program; and (3) the rate of reimbursement for a half-pint of milk served to nonneedy children in a school or institution which participates in the Special Milk Program for Children. The payments and rates are prescribed on an annual basis each July. The annual payments and rates adjustments for the school lunch and school breakfast programs reflect changes in the Food Away From Home series of the Consumer Price Index for All Urban Consumers. The annual rate adjustment for milk reflects changes in the Producer Price Index for Fluid Milk Products. These payments and rates are in effect from July 1, 1994 through June 30, 1995. EFFECTIVE DATE: July 1, 1994. FOR FURTHER INFORMATION CONTACT: Robert M. Eadie, Chief, Policy and Program Development Branch, Child Nutrition Division, FN, USDA, Alexandria, Virginia 22302, (703) 305- 2620. SUPPLEMENTARY INFORMATION: These programs are listed in the Catalog of Federal Domestic Assistance under No. 10.553, No. 10.555 and No. 10.556 and are subject to the provisions of Executive Order 12372, which requires intergovernmental consultation with State and local officials. (See 7 CFR part 3015, subpart V, and final rule related notice published at 48 FR 29114, June 24, 1983.). This Notice imposes no new reporting or recordkeeping provisions that are subject to OMB review in accordance with the Paperwork Reduction Act of 1980 (44 U.S.C. 3507). This action is not a rule as defined by the Regulatory Flexibility Act (5 U.S.C. 601-612) and thus is exempt from the provisions of that Act. This Notice has been determined to be exempt under Executive Order 12866. Background Special Milk Program for Children--Pursuant to section 3 of the Child Nutrition Act of 1966, as amended (42 U.S.C. 1772), the Department announces the rate of reimbursement for a half-pint of milk served to nonneedy children in a school or institution which participates in the Special Milk Program for Children. This rate is adjusted annually to reflect changes in the Producer Price Index for Fluid Milk Products (Code 0231), published by the Bureau of Labor Statistics of the Department of Labor. For the period July 1, 1994 to June 30, 1995, the rate of reimbursement for a half-pint of milk served to a nonneedy child in a school or institution which participates in the Special Milk Program is 11.00 cents. This reflects no change over the current reimbursement rate because the Producer Price Index for Fluid Milk Products (Code 0231) from May 1993 to May 1994 (from a level of 120.6 in May 1993 to 121.1 in May 1994) did not change significantly enough to trigger a change in the reimbursement rate. As a reminder, schools or institutions with pricing programs which elect to serve milk free to eligible children continue to receive the average cost of a half-pint of milk (the total cost of all milk purchased during the claim period divided by the total number of purchased half-pints) for each half-pint served to an eligible child. National School Lunch and School Breakfast Programs--Pursuant to section 11 of the National School Lunch Act, as amended (42 U.S.C. 1759a), and section 4 of the Child Nutrition Act of 1966, as amended (42 U.S.C. 1773), the Department annually announces the adjustments to the National Average Payment Factors and to the maximum Federal reimbursement rates for meals served to children participating in the National School Lunch Program. Adjustments are prescribed each July 1, based on changes in the Food Away From Home series of the Consumer Price Index for All Urban Consumers, published by the Bureau of Labor Statistics of the Department of Labor. The changes in the national average payment rates for schools and residential child care institutions for the period July 1, 1994 through June 30, 1995 reflect a 1.7 percent increase in the Price Index during the 12-month period May 1993 to May 1994 (from a level of 142.9 in May 1993 to 145.3 in May 1994). Lunch Payment Factors--Section 4 of the National School Lunch Act (42 U.S.C. 1753) provides general cash for food assistance payments to States to assist schools in purchasing food. There are two section 4 National Average Payment Factors for lunches served under the National School Lunch Program. The lower payment factor applies to lunches served by school food authorities in which less than 60 percent of the lunches served in the school lunch program during the second preceding school year were served free or at a reduced price. The higher payment factor applies to lunches served by school food authorities in which 60 percent or more of the lunches served during the second preceding school year were served free or at a reduced price. To supplement these section 4 payments, section 11 of the National School Lunch Act provides special cash assistance payments to aid schools in providing free and reduced-price lunches. The section 11 National Average Payment Factor for each reduced-price lunch served is set at 40 cents less than the factor for each free lunch. As authorized under sections 8 and 11 of the National School Lunch Act, maximum reimbursement rates for each type of lunch are prescribed by the Department in this Notice. These maximum rates ensure equitable disbursement of Federal funds to school food authorities. Breakfast Payment Factors--Section 4 of the Child Nutrition Act of 1966 establishes National Average Payment Factors for free, reduced- price and paid breakfasts served under the School Breakfast Program and additional payments for schools determined to be in ``severe need'' because they serve a high percentage of needy children. Revised Payments The following specific section 4 and section 11 National Average Payment Factors and maximum reimbursement rates are in effect through June 30, 1995. Due to a higher cost of living, the average payments and maximum reimbursements for Alaska and Hawaii are higher than those for all other States. The District of Columbia, Virgin Islands, Puerto Rico and the Pacific Territories use the figures specified for the contiguous States. National School Lunch Program Payments Section 4 National Average Payment Factors--In school food authorities which served less than 60 percent free and reduced-price lunches in School Year 1992-93, the payments are: Contiguous States--17 cents, maximum rate 25.00 cents; Alaska-- 27.25 cents, maximum rate 39.25; Hawaii--19.75 cents, maximum rate 29.00 cents. In school food authorities which served 60 percent or more free and reduced-price lunches in School Year 1992-93, payments are: Contiguous States--19.00 cents, maximum rate 25.00 cents; Alaska-- 29.25 cents, maximum rate 39.25 cents; Hawaii--21.75 cents, maximum rate 29.00 cents. Section 11 National Average Payment Factors--Contiguous States-- free lunch--158.75 cents, reduced-price lunch 118.75 cents; Alaska-- free lunch 257.25 cents, reduced-price lunch 217.25 cents; Hawaii--free lunch 185.75 cents, reduced-price lunch 145.75 cents. School Breakfast Program Payments For schools ``not in severe need'' the payments are: Contiguous States--free breakfast 97.50 cents, reduced-price breakfast 67.50 cents, paid breakfast 19.25 cents; Alaska--free breakfast 154.50 cents, reduced-price breakfast 124.50 cents, paid breakfast 27.50 cents; Hawaii--free breakfast 113.15 cents, reduced- price breakfast 83.25 cents, paid breakfast 21.50 cents. For schools in ``severe need'' the payments are: Contiguous States--free breakfast 116.00 cents, reduced-price breakfast 86.00 cents, paid breakfast 19.25 cents; Alaska--free breakfast 184.25 cents, reduced-price breakfast 154.25 cents, paid breakfast 27.50 cents; Hawaii--free breakfast 134.75 cents, reduced- price breakfast 104.75 cents, paid breakfast 21.50 cents. Payment Chart The following chart illustrates: the lunch National Average Payment Factors with the sections 4 and 11 already combined to indicate the per meal amount; the maximum lunch reimbursement rates; the breakfast National Average Payment Factors including ``severe need'' schools; and the milk reimbursement rate. All amounts are expressed in dollars or fractions thereof. The payment factors and reimbursement rates used for the District of Columbia, Virgin Islands, Puerto Rico and the Pacific Territories are those specified for the contiguous States. School Programs--Meal and Milk Payments to States and School Food Authorities [Expressed in Dollars or Fractions Thereof--Effective from July 1, 1994- June 30, 1995] Less than 60% or Maximum National school lunch program* 60% more rate Contiguous States: Paid............................... .1700 .1900 .2500 Reduced Price...................... 1.3575 1.3775 1.5275 Free............................... 1.7575 1.7775 1.9275 Alaska: Paid............................... .2725 .2925 .3925 Reduced Price...................... 2.4450 2.4650 2.7100 Free............................... 2.8450 2.8650 3.1100 Hawaii: Paid............................... .1975 .2175 .2900 Reduced Price...................... 1.6550 1.6750 1.8525 Free............................... 2.0550 2.0750 2.2525 Non- School breakfast program: severe Severe need need Contiguous States: Paid.......................................... .1925 .1925 Reduced Price................................. .6750 .8600 Free.......................................... .9750 1.1600 Alaska: Paid.......................................... .2750 .2750 Reduced Price................................. 1.2450 1.5425 Free.......................................... 1.5450 1.8425 ------------------------------------------------------------------------ Special milk program All milk Paid milk Free milk ------------------------------------------------------------------------ Pricing Programs $.11 N/A N/A Without Free Option. Pricing Programs with N/A $.11 Average cost \1/ Free Option. 2\ pint milk. Nonpricing Programs... $.11 N/A N/A ------------------------------------------------------------------------ *Payments listed for Free & Reduced Price Lunches include both sections 4 and 11 funds. Lunch rates do not include the current entitlement commodity (or cash-in-lieu) value of an additional $.145 per meal. Authority: Sections 4, 8, and 11 of the National School Lunch Act, as amended (42 U.S.C. 1753, 1757, 1759(a)) and sections 3 and 4(b) of the Child Nutrition Act, as amended (42 U.S.C. 1772 and 42 U.S.C. 1773). Dated: June 29, 1994. William E. Ludwig, Administrator. [FR Doc. 94-16293 Filed 7-5-94; 8:45 am] BILLING CODE 3410-30-M