[Federal Register: July 15, 2004 (Volume 69, Number 135)]
[Notices]
[Page 42415-42417]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr15jy04-25]
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DEPARTMENT OF AGRICULTURE
Food and Nutrition Service
National School Lunch, Special Milk, and School Breakfast
Programs; National Average Payments/Maximum Reimbursement Rates
AGENCY: Food and Nutrition Service, USDA.
ACTION: Notice.
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SUMMARY: This Notice announces the annual adjustments to: (1) The
``national average payments,'' the amount of money the Federal
Government provides States for lunches, afterschool snacks 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, 2004 through June
30, 2005.
EFFECTIVE DATE: July 1, 2004.
FOR FURTHER INFORMATION CONTACT: Ms. Rosemary O'Connell, Section Chief,
School Programs Section, Policy and Program Development Branch, Child
Nutrition Division, Food and Nutrition Service, USDA, 3101 Park Center
Drive, Room 640, Alexandria, VA 22302 or phone (703) 305-2590.
SUPPLEMENTARY INFORMATION:
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 that
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, published by the Bureau of Labor Statistics of the
Department of Labor.
For the period July 1, 2004 to June 30, 2005, 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
17 cents. This reflects an increase of 29.8 percent in the Producer
Price Index for Fluid Milk Products from May 2003 to May 2004 (from a
level of 143.2 in May 2003 to 185.9 in May 2004).
As a reminder, schools or institutions with pricing programs that
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
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 lunches and afterschool snacks served to
children participating in the National School Lunch Program and
breakfasts served to children participating in the School Breakfast
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, 2004 through June 30, 2005 reflect a 2.86 percent increase in the
Consumer Price Index for All Urban Consumers during the 12-month period
May 2003 to May 2004 (from a level of 181.5 in May 2003 to 186.7 in May
2004). Adjustments to the national average payment rates for all
lunches served under the National School Lunch Program, breakfasts
served under the School Breakfast Program, and afterschool snacks
served under the National School Lunch Program are rounded down to the
nearest whole cent.
Lunch Payment Levels--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. The National School Lunch
Act provides two different section 4 payment levels for lunches served
under the National School Lunch Program. The lower payment level
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 level 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 (42 U.S.C. 1759(a)) 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
[[Page 42416]]
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 and 1759a), maximum reimbursement rates for each
type of lunch are prescribed by the Department in this Notice. These
maximum rates are to ensure equitable disbursement of Federal funds to
school food authorities.
Afterschool Snack Payments in Afterschool Care Programs--Section
17A of the National School Lunch Act (42 U.S.C. 1766a) establishes
National Average Payments for free, reduced price and paid afterschool
snacks as part of the National School Lunch Program.
Breakfast Payment Factors--Section 4 of the Child Nutrition Act of
1966 (42 U.S.C. 1773) establishes National Average Payment Factors for
free, reduced price and paid breakfasts served under the School
Breakfast Program and additional payments for free and reduced price
breakfasts served in schools determined to be in ``severe need''
because they serve a high percentage of needy children.
Revised Payments
The following specific section 4, section 11 and section 17A
National Average Payment Factors and maximum reimbursement rates for
lunch, the afterschool snack rates, and the breakfast rates are in
effect from July 1, 2004 through June 30, 2005. 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 Guam 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 2002-03, the payments for meals served are:
Contiguous States--paid rate--21 cents, free and reduced price rate--21
cents, maximum rate--29 cents; Alaska--paid rate--35 cents, free and
reduced price rate--35 cents, maximum rate--45 cents; Hawaii--paid
rate--25 cents, free and reduced price rate--25 cents, maximum rate--33
cents.
In school food authorities which served 60 percent or more free and
reduced price lunches in School Year 2002-03, payments are: Contiguous
States--paid rate--23 cents, free and reduced price rate--23 cents,
maximum rate--29 cents; Alaska--paid rate--37 cents, free and reduced
price rate--37 cents, maximum rate--45 cents; Hawaii--paid rate--27
cents, free and reduced price rate--27 cents, maximum rate--33 cents.
Section 11 National Average Payment Factors--Contiguous States--
free lunch--203 cents, reduced price lunch--163 cents; Alaska--free
lunch--330 cents, reduced price lunch--290 cents; Hawaii--free lunch--
238 cents, reduced price lunch--198 cents.
Afterschool Snacks in Afterschool Care Programs--The payments are:
Contiguous States--free snack--61 cents, reduced price snack--30 cents,
paid snack--05 cents; Alaska--free snack--100 cents, reduced price
snack--50 cents, paid snack--09 cents; Hawaii--free snack--72 cents,
reduced price snack--36 cents, paid snack--06 cents.
School Breakfast Program Payments
For schools ``not in severe need'' the payments are: Contiguous
States--free breakfast--123 cents, reduced price breakfast--93 cents,
paid breakfast--23 cents; Alaska--free breakfast--196 cents, reduced
price breakfast--166 cents, paid breakfast--33 cents; Hawaii--free
breakfast--143 cents, reduced price breakfast--113 cents, paid
breakfast--25 cents.
For schools in ``severe need'' the payments are: Contiguous
States--free breakfast--147 cents, reduced price breakfast--117 cents,
paid breakfast--23 cents; Alaska--free breakfast--235 cents, reduced
price breakfast--205 cents, paid breakfast--33 cents; Hawaii--free
breakfast--171 cents, reduced price breakfast--141 cents, paid
breakfast--25 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
lunch amount; the maximum lunch reimbursement rates; the reimbursement
rates for afterschool snacks 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 Guam are those specified for the contiguous States.
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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.
In accordance with the Paperwork Reduction Act of 1995 (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.
This action is exempted from review by the Office of Management and
Budget under Executive Order 12866.
National School Lunch, School Breakfast and Special Milk Programs
are listed in the Catalog of Federal Domestic Assistance under No.
10.555, No. 10.553 and No. 10.556, respectively, 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.)
Authority: Sections 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 9, 2004.
George A. Braley,
Associate Administrator, Food and Nutrition Service.
[FR Doc. 04-16044 Filed 7-14-04; 8:45 am]
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