[Federal Register Volume 61, Number 134 (Thursday, July 11, 1996)]
[Notices]
[Pages 36547-36549]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-17670]


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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, 1996 through June 30, 
1997.

EFFECTIVE DATE: July 1, 1996.

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, 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.)
    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 1995 (44 
U.S.C. 3501-3520), 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 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, 1996 to June 30, 1997, 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 
12.25 cents. This reflects an increase of 8.96 percent in the Producer 
Price Index for Fluid Milk Products (Code 0231) from May 1995 to May 
1996 (from a level of 122.8 in May 1995 to 133.8 in May 1996).
    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 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

[[Page 36548]]

schools and residential child care institutions for the period July 1, 
1996 through June 30, 1997 reflect a 2.29 percent increase in the Price 
Index during the 12-month period May 1995 to May 1996 (from a level of 
148.6 in May 1995 to 152.00 in May 1996).

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, 1997. 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 1994-95, the payments are:
    Contiguous States--17.75 cents, maximum rate 25.75 cents; Alaska--
28.50 cents, maximum rate 40.50 cents; Hawaii--20.75 cents, maximum 
rate 29.75 cents.
    In school food authorities which served 60 percent or more free and 
reduced price lunches in School Year 1994-95, payments are: Contiguous 
States--19.75 cents, maximum rate 25.75 cents; Alaska--30.50 cents, 
maximum rate 40.50 cents; Hawaii 22.75 cents, maximum rate 29.75 cents.
    Section 11 National Average Payment Factors--Contiguous States--
free lunch--166.00 cents, reduced price lunch 126.00 cents; Alaska--
free lunch 269.00 cents, reduced price lunch 229.00 cents; Hawaii--free 
lunch 194.25 cents, reduced price lunch 154.25 cents.
    Meal Supplements in Afterschool Care Programs--The payments are: 
Contiguous States--free supplement--50.50 cents, reduced price 
supplement --25.25 cents, paid supplement--4.50 cents; Alaska--free 
supplement--81.75 cents, reduced price supplement--40.75 cents, paid 
supplement--7.50 cents; Hawaii--free supplement--59.00 cents, reduced 
price supplement--29.50 cents, paid supplement--5.50 cents.

School Breakfast Program Payments

    For schools ``not in severe need'' the payments are: Contiguous 
States--free breakfast 101.75 cents, reduced price breakfast 71.75 
cents, paid breakfast 19.75 cents; Alaska--free breakfast 161.25 cents, 
reduced price breakfast 131.25 cents, paid breakfast 28.50 cents; 
Hawaii--free breakfast 118.25 cents, reduced price breakfast 88.25 
cents, paid breakfast 22.25 cents.
    For schools in ``severe need'' the payments are: Contiguous 
States--free breakfast 121.25 cents, reduced price breakfast 91.25 
cents, paid breakfast 19.75 cents; Alaska--free breakfast 192.50 cents, 
reduced price breakfast 162.50 cents, paid breakfast 28.50 cents; 
Hawaii--free breakfast 140.75 cents, reduced price breakfast 110.75 
cents, paid breakfast 22.25 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 
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 Guam 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, 1996-June 30, 1997]             
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                                                                            Less than                  Maximum  
   National school  lunch program \1\                                          60%      60% or more      rate   
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                                          Paid...........................       $.1775       $.1975       $.2575
Contiguous States.......................  Reduced price..................       1.4375       1.4575       1.6075
                                          Free...........................       1.8375       1.8575       2.0075
                                          Paid...........................        .2850        .3050        .4050
Alaska..................................  Reduced price..................       2.5750       2.5950       2.8400

[[Page 36549]]

                                                                                                                
                                          Free...........................       2.9750       2.9950       3.2400
                                          Paid...........................        .2075        .2275        .2975
Hawaii..................................  Reduced price..................       1.7500       1.7700       1.9450
                                          Free...........................       2.1500       2.1700       2.3450
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            School breakfast                                                                                    
(1) Non-severe                                         Severe                                                   
                 program                                                                                        
(1)need                                                 need                                                    
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                                          Paid...........................                                       
(1) $.1975                                $.1975.........................                                       
Contiguous States.......................  Reduced price..................                                       
(1) .7175                                 .9125..........................                                       
                                          Free...........................                                       
(1)1.0175                                 1.2125.........................                                       
                                          Paid...........................                                       
(1) .2850                                 .2850..........................                                       
Alaska..................................  Reduced price..................                                       
(1)1.3125                                 1.6250.........................                                       
                                          Free...........................                                       
(1)1.6125                                 1.9250.........................                                       
                                          Paid...........................                                       
(1) .2225                                 .2225..........................                                       
Hawaii..................................  Reduced price..................                                       
(1) .8825                                 1.1075.........................                                       
                                          Free...........................                                       
(1)1.1825                                 1.4075.........................                                       
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                           Special milk program                              All milk    Paid milk    Free milk 
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Pricing programs without free option.....................................        .1225          N/A          N/A
Pricing programs with free option........................................          N/A        .1225        (\2\)
Nonpricing programs......................................................        .1225          N/A          N/A


                                 Supplements served in afterschool care programs                                
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                                         Paid..........................                      .0450              
Contiguous States......................  Reduced price.................                      .2525              
                                         Free..........................                      .5050              
                                         Paid..........................                      .0750              
Alaska.................................  Reduced price.................                      .4075              
                                         Free..........................                      .8175              
                                         Paid..........................                      .0550              
Hawaii.................................  Reduced price.................                      .2950              
                                         Free..........................                      .5900              
\1\ Payments listed for Free & Reduced Price Lunches include both sections 4 and 11 funds.                      
\2\ Average cost \1/2\ pint milk.                                                                               

    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: July 3, 1996.
William E. Ludwig,
Administrator.
[FR Doc. 96-17670 Filed 7-10-96; 8:45 am]
BILLING CODE 3410-30-P