[Federal Register: July 18, 2005 (Volume 70, Number 136)]
[Notices]
[Page 41197-41200]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr18jy05-26]
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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 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; to 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 to the rate of reimbursement for a
half[pi]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, 2005 through June 30,
2006.
DATES: Effective Date: These rates are effective from July 1, 2005
through June 30, 2006.
FOR FURTHER INFORMATION CONTACT: Mr. Todd Barrett, Acting 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[pi]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, 2005 to June 30, 2006, the rate of
reimbursement for a half[pi]pint of milk served to a nonneedy child in
a school or institution which participates in the Special Milk Program
is 15.5 cents. This reflects a decrease of 8.87 percent in the Producer
Price Index for Fluid Milk Products from May 2004 to May 2005 (from a
level of 185.9 in May 2004 to 169.4 in May 2005).
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[pi]pint of milk (the total cost of all milk
purchased during the claim period divided by the total number of
purchased half[pi]pints) for each half[pi]pint served to an eligible
child.
National School Lunch and School Breakfast Programs--Pursuant to
sections 11 and 17A of the Richard B. Russell 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
[[Page 41198]]
Labor. The changes in the national average payment rates for schools
and residential child care institutions for the period July 1, 2005
through June 30, 2006 reflect a 3.16 percent increase in the Consumer
Price Index for All Urban Consumers during the 12-month period May 2004
to May 2005 (from a level of 186.7 in May 2004 to 192.6 in May 2005).
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 Richard B. Russell 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
Richard B. Russell 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 Richard
B. Russell 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 served is set at 40 cents less than the
factor for each free lunch.
As authorized under sections 8 and 11 of the Richard B. Russell
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 Richard B. Russell 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, 2005 through June 30, 2006. 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 2003-04, the payments for meals served are:
Contiguous States: Paid rate--22 cents, free and reduced price rate--22
cents, maximum rate--30 cents;
Alaska: Paid rate--36 cents, free and reduced price rate--36 cents,
maximum rate--47 cents;
Hawaii: Paid rate--26 cents, free and reduced price rate--26 cents,
maximum rate--34 cents.
In school food authorities which served 60 percent or more free and
reduced price lunches in School Year 2003-04, payments are:
Contiguous States: Paid rate--24 cents, free and reduced price rate--24
cents, maximum rate--30 cents;
Alaska: Paid rate--38 cents, free and reduced price rate--38 cents,
maximum rate--47 cents;
Hawaii: Paid rate--28 cents, free and reduced price rate--28 cents,
maximum rate--34 cents.
Section 11 National Average Payment Factors:
Contiguous States: Free lunch--210 cents, reduced price lunch--170
cents;
Alaska: Free lunch--340 cents, reduced price lunch--300 cents;
Hawaii: Free lunch--246 cents, reduced price lunch--206 cents.
Afterschool Snacks in Afterschool Care Programs. The payments are:
Contiguous States: Free snack--63 cents, reduced price snack--31 cents,
paid snack--05 cents;
Alaska: Free snack--103 cents, reduced price snack--51 cents, paid
snack--09 cents;
Hawaii: Free snack--74 cents, reduced price snack--37 cents, paid
snack--06 cents.
School Breakfast Program Payments
For schools ``not in severe need'' the payments are:
Contiguous States: Free breakfast--127 cents, reduced price breakfast--
97 cents, paid breakfast--23 cents;
Alaska: Free breakfast--202 cents, reduced price breakfast--172 cents,
paid breakfast--34 cents;
Hawaii: Free breakfast--148 cents, reduced price breakfast--118 cents,
paid breakfast--26 cents.
For schools in ``severe need'' the payments are:
Contiguous States: Free breakfast--151 cents, reduced price breakfast--
121 cents, paid breakfast--23 cents;
Alaska: Free breakfast--242 cents, reduced price breakfast--212 cents,
paid breakfast--34 cents;
Hawaii: Free breakfast--176 cents, reduced price breakfast--146 cents,
paid breakfast--26 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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[GRAPHIC] [TIFF OMITTED] TN18JY05.002
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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 Richard B. Russell
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)).
[[Page 41200]]
Dated: July 12, 2005.
Roberto Salazar,
Administrator, Food and Nutrition Service. [Insert Photo Material]
[FR Doc. 05-14028 Filed 7-15-05; 8:45 am]
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