[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]



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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.

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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, 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