Federal Register: July 3, 2002 (Volume 67, Number 128)

DOCID: FR Doc 02-16694

SUBJECT CATEGORY:

National School Lunch, Special Milk, and School Breakfast Programs; National Average Payments/Maximum Reimbursement Rates

EFFECTIVE DATES: July 1, 2002.

DOCUMENT 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; 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 the rate of reimbursement for a halfpint 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, 2002 through June 30, 2003.

SUMMARY:

National School Lunch, Special Milk, and School Breakfast Programs—; National average payments/maximum reimbursement rates,

SUPPLEMENTAL 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 halfpint 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, 2002 to June 30, 2003, the rate of reimbursement for a halfpint of milk served to a nonneedy child in a school or institution which participates in the Special Milk Program is 13.50 cents. This reflects a decrease of 6.83 percent in the Producer Price Index for Fluid Milk Products from May 2001 to May 2002 (from a level of 157.9 in May 2001 to 147.1 in May 2002).

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 halfpint of milk (the total cost of all milk purchased during the claim period divided by the total number of purchased halfpints) for each halfpint 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 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 Labor. The changes in the national average payment rates for schools and residential child care institutions for the period July 1, 2002 through June 30, 2003 reflect a 2.6 percent increase in the Consumer Price Index for All Urban Consumers during the 12month period May 2001 to May 2002 (from a level of 173.1 in May 2001 to 177.6 in May 2002). 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 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 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 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 are to ensure equitable disbursement of Federal funds to school food authorities.

Afterschool Snack Payments in Afterschool Care Programs

Section 17A of the National School Lunch Act (42 U.S.C. 1766a) establishes National Average Payments for free, reduced price and paid afterschool
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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, 2002 through June 30, 2003. 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 FactorsIn school food authorities which served less than 60 percent free and reduced price lunches in School Year 200001, the payments for meals served are: Contiguous Statespaid rate20 cents, free and reduced price rate20 cents, maximum rate28 cents; Alaskapaid rate33 cents, free and reduced price rate33 cents, maximum rate44 cents; Hawaiipaid rate24 cents, free and reduced price rate24 cents, maximum rate32 cents. In school food authorities which served 60 percent or more free and reduced price lunches in School Year 200001, payments are: Contiguous Statespaid rate22 cents, free and reduced price rate22 cents, maximum rate28 cents; Alaskapaid rate35 cents, free and reduced price rate35 cents, maximum rate44 cents; Hawaiipaid rate26 cents, free and reduced price rate26 cents, maximum rate32 cents.

Section 11 National Average Payment FactorsContiguous States free lunch194 cents, reduced price lunch154 cents; Alaskafree lunch314 cents, reduced price lunch274 cents; Hawaiifree lunch 226 cents, reduced price lunch186 cents.

Afterschool Snacks in Afterschool Care ProgramsThe payments are: Contiguous Statesfree snack58 cents, reduced price snack29 cents, paid snack5 cents; Alaskafree snack95 cents, reduced price snack 47 cents, paid snack8 cents; Hawaiifree snack68 cents, reduced price snack34 cents, paid snack6 cents.

School Breakfast Program Payments

For schools ``not in severe need'' the payments are: Contiguous Statesfree breakfast117 cents, reduced price breakfast87 cents, paid breakfast22 cents; Alaskafree breakfast187 cents, reduced price breakfast157 cents, paid breakfast32 cents; Hawaiifree breakfast137 cents, reduced price breakfast107 cents, paid breakfast24 cents.

For schools in ``severe need'' the payments are: Contiguous States free breakfast140 cents, reduced price breakfast110 cents, paid breakfast22 cents; Alaskafree breakfast223 cents, reduced price breakfast193 cents, paid breakfast32 cents; Hawaiifree breakfast 163 cents, reduced price breakfast133 cents, paid breakfast24 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.
BILLING CODE 341030P
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[GRAPHIC] [TIFF OMITTED] TN03JY02.009

BILLING CODE 341030C

This action is not a rule as defined by the Regulatory Flexibility Act (5 U.S.C. 601612) 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
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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 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, 2002.
Roberto Salazar,
Administrator, Food and Nutrition Service.
[FR Doc. 0216694 Filed 7202; 8:45 am] BILLING CODE 341030P

FOR FURTHER INFORMATION CONTACT

Ms. Barbara Semper, 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) 3052590.

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