[Federal Register Volume 62, Number 134 (Monday, July 14, 1997)]
[Notices]
[Pages 37702-37703]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-18521]



[[Page 37701]]

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Part V





Department of Agriculture





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Food and Consumer Service



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Child Nutrition Programs: Child and Adult Care Food Program--National 
Average Payment Rates; Day Care Home Food Service Payment Rates Etc., 
and National School Lunch, Special Milk, and School Breakfast Programs; 
Reimbursement Rates; Notices

  Federal Register / Vol. 62, No. 134 / Monday, July 14, 1997 / 
Notices  

[[Page 37702]]


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DEPARTMENT OF AGRICULTURE

Food and Consumer Service


Child and Adult Care Food Program: National Average Payment 
Rates, Day Care Home Food Service Payment Rates, and Administrative 
Reimbursement Rates for Sponsors of Day Care Homes for the Period July 
1, 1997-June 30, 1998

AGENCY: Food and Consumer Service, USDA.

ACTION: Notice.

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SUMMARY: This notice announces the annual adjustments to the national 
average payment rates for meals served in child care, outside-school-
hours care and adult day care centers; the food service payment rates 
for meals served in day care homes; and the administrative 
reimbursement rates for sponsors of day care homes to reflect changes 
in the Consumer Price Index. Further adjustments are made to these 
rates to reflect the higher costs of providing meals in the States of 
Alaska and Hawaii. The adjustments contained in this notice are 
required by the statutes and regulations governing the Child and Adult 
Care Food Program (CACFP).

EFFECTIVE DATE: July 1, 1997.

FOR FURTHER INFORMATION CONTACT: Robert M. Eadie, Branch Chief, Policy 
and Program Development Branch, Child Nutrition Division, Food and 
Consumer Service, USDA, Alexandria, Virginia 22302, (703) 305-2620.

SUPPLEMENTARY INFORMATION: This program is listed in the Catalog of 
Federal Domestic Assistance under No. 10.558 and is 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 1995 (44 U.S.C. 3501-
3518).
    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.

Definitions

    The terms used in this notice shall have the meanings ascribed to 
them in the regulations governing the CACFP (7 CFR Part 226).

Background

    Pursuant to Sections 4, 11 and 17 of the National School Lunch Act 
(NSLA) (42 U.S.C. Secs. 1753, 1759a and 1766), Section 4 of the Child 
Nutrition Act of 1966 (42 U.S.C. Sec. 1773) and Sections 226.4, 226.12 
and 226.13 of the regulations governing the CACFP (7 CFR Part 226), 
notice is hereby given of the new payment rates for participating 
institutions. These rates shall be in effect during the period July 1, 
1997 through June 30, 1998.
    As provided for under the NSLA and the Child Nutrition Act of 1966, 
all rates in the CACFP must be revised annually on July 1 to reflect 
changes in the Consumer Price Index for the most recent 12-month 
period. In accordance with this mandate, the Department last published 
the adjusted national average payment rates for centers, the food 
service payment rates for day care homes and the administrative 
reimbursement rates for sponsors of day care homes on July 11, 1996 at 
61 FR 36545 (for the period July 1, 1996-June 30, 1997).
    Section 704(b)of the Personal Responsibility and Work Opportunity 
Reconciliation Act of 1996, P.L. 104-193, enacted August 22, 1996, 
amends Sec. 11a(3)(B) of the National School Lunch Act (42 U.S.C. 
Sec. 1759a(a)(3)(B) and changes the method for computing the annual 
adjustments to the national average payment rates for meals and 
supplements served to non-needy children in day care centers. Effective 
July 1, 1997, the annual adjustments to the payment rates for paid 
meals and paid supplements, will be rounded down to the nearest whole 
cent. The annual adjustments to the payments for free and reduced price 
meals and to the payments for free and reduced price supplements were 
unchanged by Pub.L. 104-193 and continue to be rounded up or down to 
the nearest one-fourth cent.
    Section 708(e)(1) of Pub.L. 104-193, also amended section 
17(f)(3)(A) of the NSLA to establish two ``tiers'' of day care homes 
and reimbursement rates. Pursuant to these amendments, tier I homes are 
those that are located in low-income areas or those in which the 
provider's household income is at or below 185 percent of the Federal 
income poverty guidelines. Tier II homes are those which do not meet 
the location or provider income criteria for a tier I home. However, 
tier II homes may receive the tier I rates for meals served to 
identified income-eligible children (i.e. children from households with 
incomes at or below 185 percent of the Federal income poverty 
guidelines).
    Pub. L. 104-193 further specified in section 17 (f)(3)(A)(ii) (III) 
and (IV) the reimbursement factors for meals served in tier I day care 
homes as the factors in effect on July 1, 1996, with adjustments made 
to the factors on July 1, 1997, and each July 1 thereafter. Pub. L. 
104-193 further provided in section 17(f)(3)(A)(ii)(IV) and 
(iii)(I)(bb) (42 U.S.C. Sec. 1766(f)(3)(A)(ii)(IV) and (iii)(I)(bb)) of 
the NSLA that the factors paid to tier I and tier II homes be rounded 
down to the nearest whole cent, instead of rounding the factors up or 
down to the nearest quarter-cent increment as previously required. 
Subsequent adjustments must be based on the unrounded rate from the 
preceding school year. In addition, annual adjustments, which were 
previously based on changes in the Consumer Price Index for food away 
from home, must now be made based on the Consumer Price Index for food 
at home.
    Please note that, reimbursement rates for tier II family day care 
homes are set forth in section 17(f)(3)(A)(iii)(I)(aa) of the NSLA (42 
U.S.C. Secs. 1766(f)(3)(A)(iii)(I)(aa), as amended by section 708(e)(1) 
of P.L. 104-193. After these reimbursement rates were adjusted and 
rounded down to the nearest whole cent as required under the law, an 
additional six cents was added to the breakfast rate as required by 
section 4(b)(3) of the Child Nutrition Act of 1966, as amended (42 
U.S.C. 1773(b)(3)). The Child Nutrition Act requires that all 
reimbursement rates for breakfasts served under the School Breakfast 
Program and the CACFP be adjusted upward by six cents. As background, 
this addition was first made in 1986, under Pub. L. 99-500, the School 
Lunch and Child Nutrition Amendments of 1986, which added three cents 
to adjusted breakfast rates to assist States in improving the 
nutritional quality of the breakfasts and this adjustment was raised 
from three cents to six cents in 1989 under Pub. L. 101-147, the Child 
Nutrition and WIC Reauthorization Act of 1989, for the same reason.
    The payment rates for the period July 1, 1997-June 30, 1998 are:

                   All States Except Alaska and Hawaii                  
Meals Served in Centers--Per Meal Rates in Dollars or Fractions thereof:
Breakfasts:                                                             
  Paid......................................................       .20  
  Free......................................................      1.0450
  Reduced...................................................       .7450
Lunches and Suppers: \1\                                                
  Paid......................................................       .18  

[[Page 37703]]

                                                                        
  Free......................................................      1.8900
  Reduced...................................................      1.4900
Supplements:                                                            
  Paid......................................................       .04  
  Free......................................................       .5175
  Reduced...................................................       .2600
                                                                        
\1\ These rates do not include the value of commodities (or cash-in-lieu
  of commodities) which institutions receive as additional assistance   
  for each lunch or supper served to participants under the program.    
  Notices announcing the value of commodities and cash-in-lieu of       
  commodities are published separately in the Federal Register.         


------------------------------------------------------------------------
                                                    Tier I      Tier II 
------------------------------------------------------------------------
Meals Served in DAY CARE HOMES--Per Meal Rates in Dollars or Fractions  
 thereof:                                                               
Breakfasts......................................         .88         .33
Lunches and Suppers.............................        1.62         .98
Supplements.....................................         .48         .13
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Administrative Reimbursement Rates for Sponsoring Organizations of Day  
 Care Homes--Per Home/Per Month Rates in Dollars:                       
Initial 50 day care homes......................................       75
Next 150 day care homes........................................       57
Next 800 day care homes........................................       45
Additional day care homes......................................       39
                                                                        

    Pursuant to Section 12(f) of the NSLA (42 U.S.C. 1760(f)), the 
Department adjusts the payment rates for participating institutions in 
the States of Alaska and Hawaii. The new payment rates for Alaska are 
as follows:

                                 Alaska                                 
Meals Served in Centers--Per Meal Rates in Dollars or Fractions thereof:
Breakfasts:                                                             
  Paid......................................................       .29  
  Free......................................................      1.6575
  Reduced...................................................      1.3575
Lunches and Suppers: \1\                                                
  Paid......................................................       .29  
  Free......................................................      3.06  
  Reduced...................................................      2.66  
Supplements:                                                            
  Paid......................................................       .07  
  Free......................................................       .8400
  Reduced...................................................       .4200 
                                                                        
\1\ These rates do not include the value of commodities (or cash-in-lieu
  of commodities) which institutions receive as additional assistance   
  for each lunch or supper served to participants under the program.    
  Notices announcing the value of commodities and cash-in-lieu of       
  commodities are published separately in the Federal Register.         


------------------------------------------------------------------------
                                                    Tier I      Tier II 
------------------------------------------------------------------------
Meals Served in Day Care Homes--Per Meal Rates in Dollars or Fractions  
 thereof:                                                               
Breakfasts......................................        1.40         .51
Lunches and Suppers.............................        2.63        1.58
Supplements.....................................         .78         .21
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Administrative Reimbursement Rates for Sponsoring Organizations of Day  
 Care Homes--Per Home/Per Month Rates in Dollars:                       
Initial 50 day care homes......................................      121
Next 150 day care homes........................................       92
Next 800 day care homes........................................       72
Additional day care homes......................................       64
                                                                        

    The new payment rates for Hawaii are as follows:

                                 Hawaii                                 
Meals Served in Centers--Per Meal Rates in Dollars or Fractions thereof:
Breakfasts:                                                             
  Paid......................................................       .22  
  Free......................................................      1.2125
  Reduced...................................................       .9125
Lunches and Suppers: \1\                                                
  Paid......................................................       .21  
  Free......................................................      2.21  
  Reduced...................................................      1.81  
Supplements:                                                            
  Paid......................................................       .05  
  Free......................................................       .6075
  Reduced...................................................       .3025 
                                                                        
 \1\These rates do not include the value of commodities (or cash-in-lieu
  of commodities) which institutions receive as additional assistance   
  for each lunch or supper served to participants under the program.    
  Notices announcing the value of commodities and cash-in-lieu of       
  commodities are published separately in the Federal Register.         


Meals Served in DAY CARE HOMES--Per Meal Rates in Dollars or Fractions  
 thereof:                                                               
Breakfasts......................................        1.02         .38
Lunches and Suppers.............................        1.90        1.14
Supplements.....................................         .56         .15
                                                                        


Administrative Reimbursement Rates for Sponsoring Organizations of Day  
 Care Homes--Per Home/Per Month Rates in Dollars:                       
Initial 50 day care homes......................................       88
Next 150 day care homes........................................       67
Next 800 day care homes........................................       52
Additional day care homes......................................       46
                                                                        

    The changes in the national average payment rates for centers 
reflect a 2.83 percent increase during the 12-month period May 1996 to 
May 1997 (from 152.0 in May 1996 to 156.3 in May 1997) 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 food service payment rates for day care homes 
reflect a 3.21 percent increase during the 12-month period May 1996 to 
May 1997 (from 152.6 in May 1996 to 157.5 in May 1997) in the food at 
home series of the Consumer Price Index for All Urban Consumers.
    The changes in the administrative reimbursement rates for 
sponsoring organizations of day care homes reflect a 2.23 percent 
increase during the 12-month period May 1996 to May 1997 (from 156.6 in 
May 1996 to 160.1 in May 1997) in the series for all items of the 
Consumer Price Index for All Urban Consumers, published by the Bureau 
of Labor Statistics of the Department of Labor.
    The total amount of payments available to each State agency for 
distribution to institutions participating in the program is based on 
the rates contained in this notice.

    Authority: Sections 4(b)(2), 11a, 17(c) and 17(f)(3)(B) of the 
National School Lunch Act, as amended (42 U.S.C. 1753(b)(2), 1759a, 
1766(f)(3)(B)) and section 4(b)(1)(B) of the Child Nutrition Act of 
1966, as amended (42 U.S.C. 1773(b)(1)(B)).

    Dated: July 9, 1997.
William Ludwig,
Administrator.
[FR Doc. 97-18521 Filed 7-11-97; 8:45 am]
BILLING CODE 3410-30-P