[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: 94-16295]


[[Page Unknown]]

[Federal Register: July 6, 1994]


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DEPARTMENT OF AGRICULTURE
 

Food Distribution Program; Value of Donated Foods from July 1, 
1994 to June 30, 1995

AGENCY: Food and Nutrition Service, USDA.

ACTION: Notice.

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SUMMARY: This notice announces the value of donated foods or, where 
applicable, cash in lieu thereof to be provided in the 1995 school year 
for each lunch served by schools participating in the National School 
Lunch Program (NSLP) or by commodity schools and for each lunch and 
supper served by institutions participating in the Child and Adult Care 
Food Program.
    This notice also announces that the value of agricultural 
commodities and other foods provided to States during the past school 
year met the level of assistance authorized under the National School 
Lunch Act. Thus, there will be no shortfall cash payments to States for 
the NSLP for the 1994 school year. The annually programmed level of 
assistance was met in food donations by June 30, 1994.

EFFECTIVE DATE: July 1, 1994.

FOR FURTHER INFORMATION CONTACT: Philip K. Cohen, Chief, Program 
Administration Branch, Food Distribution Division, Food and Nutrition 
Service, U.S. Department of Agriculture, 3101 Park Center Drive, 
Alexandria, Virginia 22302-1594 or telephone (703) 305-2662.

SUPPLEMENTARY INFORMATION: These programs are listed in the Catalog of 
Federal Domestic Assistance under Nos. 10.550, 10.555, and 10.558 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 Office of Management and Budget 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.

National Average Minimum Value of Donated Foods for the Period July 1, 
1994 Through June 30, 1995

    This notice implements mandatory provisions of sections 6(e), 14(f) 
and 17(h)(1) of the National School Lunch Act (the Act) (42 U.S.C. 
1755(e), 1762a(f), and 1766(h)(1)). Section 6(e)(1)(A) of the Act 
establishes the national average value of donated food assistance to be 
given to States for each lunch served in NSLP at 11.00 cents per meal. 
Pursuant to section 6(e)(1)(B), this amount is subject to annual 
adjustments as of July 1 of each year to reflect changes in the Price 
Index for Food Used in Schools and Institutions. Section 17(h)(1) of 
the Act provides that the same value of assistance in donated foods for 
school lunches shall also be established for lunches and suppers served 
in the Child and Adult Care Food Program. Notice is hereby given that 
the national average minimum value of donated foods, or cash in lieu 
thereof, per lunch under NSLP (7 CFR part 210) and per lunch and supper 
under the Child and Adult Care Food Program (7 CFR part 226) shall be 
14.50 cents for the period July 1, 1994 through June 30, 1995.
    The Price Index for Food Used in Schools and Institutions is 
computed on the basis of five major food components in the Bureau of 
Labor Statistics' Producer Price Index (cereal and bakery products; 
meats, poultry and fish; dairy products; processed fruits and 
vegetables; and fats and oils). Each component is assigned a 
proportional value using the appropriate relative weight as determined 
by the Bureau of Labor Statistics. The value of food assistance is 
adjusted each July 1 by the annual percentage change in a three- month 
simple average value of this Price Index for March, April and May. The 
three-month average of the Price Index increased by 2.92 percent from 
123.23 for March, April and May of 1993 to 126.83 for the same three 
months in 1994. When computed on the basis of unrounded data and 
rounded to the nearest one-quarter cent, the resulting national average 
for the period July 1, 1994 through June 30, 1995 will be 14.50 cents 
per meal. This is an increase of 0.50 cents from the school year 1994 
rate.
    Section 14(f) of the Act provides that commodity schools shall be 
eligible to receive donated foods equal in value to the sum of the 
national average value of donated foods established under section 6(e) 
of the Act and the national average payment established under section 4 
of the Act (42 U.S.C. 1753). Such schools are eligible to receive up to 
5 cents of this value in cash for processing and handling expenses 
related to the use of such foods.
    Commodity schools are defined in section 12(d)(7) of the Act (42 
U.S.C. 1760(d)(7)) as ``schools that do not participate in the school 
lunch program under this Act, but which receive commodities made 
available by the Secretary for use by such schools in nonprofit lunch 
programs.''
    For the 1995 school year, commodity schools shall be eligible to 
receive donated food assistance valued at 31.50 cents for each lunch 
served. This amount is based on the sum of the section 6(e) level of 
assistance announced in this notice and the adjusted section 4 minimum 
national average payment factor for school year 1995. The section 4 
factor for commodity schools does not include the two cents per lunch 
increase for schools where 60 percent of the lunches were served in the 
second preceding year free or at reduced prices, since that increase is 
applicable only to schools participating in the National School Lunch 
Program.

Cash in Lieu Payments--Value of Donated Commodities for School Year 
1994

    Section 6(b) of the Act (42 U.S.C. 1755(b)) and the regulations 
governing cash in lieu of donated foods (7 CFR part 240) require the 
Secretary of Agriculture by June 1 of each school year to estimate the 
value of agricultural commodities and other foods that will be 
delivered to States during that school year. Under the food 
distribution regulations (7 CFR part 250), these foods are used by 
schools participating in NSLP. If the estimated value is less than the 
total level of commodity assistance authorized under section 6(e) of 
the Act, the Secretary is required by July 1 of that school year to pay 
to each State educational agency funds equal to the difference between 
the value of programmed deliveries and the total level of authorized 
assistance for each State.
    During the past school year the adjusted minimum national average 
value of donated foods or payments of cash in lieu thereof per lunch 
was 14.00 cents. In accordance with section 6(e) of the Act, the 
mandated level of commodity assistance was $566,188,578 for school year 
1994. The Secretary has determined that at least that amount was 
available for delivery nationally by June 30, 1994 to meet the mandated 
level of assistance.
    Notice is hereby given, therefore, that no shortfall cash payments 
will be made for the school year ending June 30, 1994.

    Authority: Sections 6(e)(1) (A) and (B), 14(f) and 17(h)(1) of 
the National School Lunch Act, as amended (42 U.S.C. 1755(e)(1)(A) 
and (B), 1762a(f), and 1766(h)(1)).

    Dated: June 29, 1994.
William E. Ludwig,
Administrator.
[FR Doc. 94-16295 Filed 7-5-94; 8:45 am]
BILLING CODE 3410-30-U