[Federal Register Volume 60, Number 127 (Monday, July 3, 1995)] [Notices] [Pages 34500-34502] From the Federal Register Online via the Government Publishing Office [www.gpo.gov] [FR Doc No: 95-16272] ----------------------------------------------------------------------- DEPARTMENT OF AGRICULTURE National School Lunch, Special Milk, and School Breakfast Programs; National Average Payments/Maximum Reimbursement Rates AGENCY: Food and Consumer 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, meal supplements 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 National 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 the Special Milk Program reflects changes in the Producer Price Index for Fluid Milk Products. These payments and rates are in effect from July 1, 1995 through June 30, 1996. EFFECTIVE DATE: July 1, 1995. FOR FURTHER INFORMATION CONTACT: Robert M. Eadie, Chief, Policy and Program Development Branch, Child Nutrition Division, FCS, 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 the final rule related notice published at 48 FR 29114, June 24, 1983.) 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. In accordance with the Paperwork Reduction Act of 1980 (44 U.S.C. 3507), no new recordkeeping or reporting requirements have been included that are subject to approval from the Office of Management and Budget. 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 noneedy 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, 1995 to June 30, 1996, 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 11.25 cents. This reflects an increase of 1.4 percent in the Producer Price Index for Fluid Milk Products (Code 0231) from May 1994 to May 1995 (from a level of 121.1 in May 1994 to 122.8 in May 1995). 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 [[Page 34501]] purchased half-pints) for each half-pint served to an eligible child. National School Lunch and School Breakfast Programs Pursuant to sections 11 and 17A of the National School Lunch Act, (42 U.S.C. 1759a and 1766a), and section 4 of the Child Nutrition Act of 1966, (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 and supplements 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, 1995 through June 30, 1996 reflect a 2.27 percent increase in the Price Index during the 12-month period May 1994 to May 1995 (from a level of 145.3 in May 1994 to 148.6 in May 1995). 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 (42 U.S.C. 1757, 1759a), 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. Meal Supplement Payments in Afterschool Care Programs Section 17A (42 U.S.C. 1766a) of the National School Lunch Act authorizes elementary and secondary schools to be reimbursed for meal supplements as part of the National School Lunch Program if they meet the following requirements: (1) Operate school lunch programs under the National School Lunch Act; (2) sponsor afterschool care programs; and (3) were participating in the Child and Adult Care Food Program as of May 15, 1989. The reimbursement rates for supplements served in Afterschool Care Programs under the National School Lunch Program are the same as the rates for supplements served in centers under the Child and Adult Care Food Program. 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, 1996. 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, Guam, American Samoa, the Commonwealth of the Northern Marianas, the Federated States of Micronesia, the Republic of the Marshalls, and the Republic of Palau 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 1993-94, the payments are: Contiguous States--17.25 cents, maximum rate 25.25 cents; Alaska--28.00 cents, maximum rate 39.75 cents; Hawaii--20.25 cents, maximum rate 29.25 cents. In school food authorities which served 60 percent or more free and reduced price lunches in School Year 1993-94, payments are: Contiguous States--19.25 cents, maximum rate 25.25 cents; Alaska--30.00 cents, maximum rate 39.75 cents; Hawaii 22.25 cents, maximum rate 29.25 cents. Section 11 National Average Payment Factors Contiguous States--free lunch--162.25 cents, reduced price lunch 122.25 cents; Akaska--free lunch 263.00 cents, reduced price lunch 223.00 cents; Hawaii--free lunch 190.00 cents, reduced price lunch 150.00 cents. Meal Supplements in Afterschool Care Programs The payments are: Contiguous States--free supplement--49.25 cents, reduced price supplement--24.75 cents, paid supplement--4.50 cents; Alaska--free supplement--80.00 cents, reduced price supplement--40.00 cents, paid supplement--7.25 cents; Hawaii--free supplement--57.75 cents, reduced price supplement--28.75 cents, paid supplement--5.25 cents. School Breakfast Program Payments For schools ``not in severe need'' the payments are: Contiguous States--free breakfast 99.75 cents, reduced price breakfast 69.45 cents, paid breakfast 19.50 cents; Alaska--free breakfast 157.75 cents, reduced price breakfast 127.75 cents, paid breakfast 28.00 cents; Hawaii--free breakfast 115.75 cents, reduced price breakfast 85.75 cents, paid breakfast 21.75 cents. For schools in ``severe need'' the payments are: Contiguous States--free breakfast 118.50 cents, reduced price breakfast 88.50 cents, paid breakfast 19.50 cents; Alaska--free breakfast 188.25 cents, reduced price breakfast 158.25 cents, paid breakfast 28.00 cents; Hawaii--free breakfast 137.75 cents, reduced paid breakfast 107.75 cents, paid breakfast 21.75 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 reimbursement rates for meal supplements served in afterschool care programs; 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 [[Page 34502]] are those specified for the contiguous States. School Programs--Meals and Milk Payments to States and School Food Authorities [Expressed in dollars or fractions thereof--effective from July 1, 1995- June 30, 1996] ------------------------------------------------------------------------ National School Lunch Program Less than 60 60 percent \1\ percent or more Maximum rate ------------------------------------------------------------------------ Contiguous States: Paid...................... $0.1725 $0.1925 $0.2525 Reduced price............. 1.3950 1.4150 1.5650 Free...................... 1.7950 1.8150 1.9650 Alaska: Paid...................... .28 .30 .3975 Reduced price............. 2.51 2.53 2.77 Free...................... 2.91 2.93 3.17 Hawaii: Paid...................... .2025 .2225 .2925 Reduced price............. 1.7025 1.7225 1.8950 Free...................... 2.1025 2.1225 2.2950 ------------------------------------------------------------------------ Non-Severe School Breakfast Program Need Severe Need ------------------------------------------------------------------------ Contiguous States: Paid...................... $0.1950 ............ $0.1950 Reduced price............. .6975 ............ .8850 Free...................... .9975 ............ 1.1850 Alaska: Paid...................... .28 ............ .28 Reduced price............. 1.2775 ............ 1.5825 Free...................... 1.5775 ............ 1.8825 Hawaii: Paid...................... .2175 ............ .2175 Reduced price............. .8575 ............ 1.0775 Free...................... 1.1575 ............ 1.3775 ------------------------------------------------------------------------ Special Milk Program All milk Paid milk Free milk ------------------------------------------------------------------------ Pricing Programs without Free Option....................... $.1125 N/A N/A Pricing Programs with Free Option....................... N/A $.1125 (2) Nonpricing programs........... .1125 N/A N/A ------------------------------------------------------------------------ Supplements Served in Afterschool Care Programs ------------------------------------------------------------------------ Contiguous States: Paid...................... ............ $.0450 ............ Reduced price............. ............ .2475 ............ Free...................... ............ .4925 ............ Alaska: Paid...................... ............ .0725 ............ Reduced price............. ............ .4000 ............ Free...................... ............ .8000 ............ Hawaii: Paid...................... ............ .0525 ............ Reduced price............. ............ .2875 ............ Free...................... ............ .5775 ............ ------------------------------------------------------------------------ \1\ Payments listed for Free and Reduced Price Lunches include both sections 4 and 11 funds. \2\ Average cost \1/2\ pint milk. Authority: Sec. 4, 8, 11 and 17A of the National School Lunch Act, as amended, (42 U.S.C. 1753, 1757, 1759a, 1766a) and sections 3 and 4(b) of the Child Nutrition Act, as amended (42 U.S.C. 1772 and 42 U.S.C. 1773(b)). Dated: June 27, 1995. William E. Ludwig, Administrator. [FR Doc. 95-16272 Filed 6-30-95; 8:45 am] BILLING CODE 3410-30-P