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The Funding Issue:
From a National Perspective
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District Level National Level
Top Tier
Funding 51%
Cost of food/food preparation 49%
Funding 62%
Childhood Obesity 51%
Middle Tier
LSWP Implementation
Childhood Obesity
Employee recruitment /retention
Food Safety/HACCP
State or local nutrition policies
Customer Satisfaction
Cost of food/food preparation
LSWP Implementation
Food Safety/HACCP
Employee recruitment /retention
State or local nutrition policies
Pressing Issues Identified by SN Directors (School Nutrition Operations Report)
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The Cost of Producing a School Lunch (School Nutrition 2007 Trends Report)
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Factors Impacting The Cost of Producing a School Lunch
Energy Prices
Commodity and Food Prices
Insurance & Benefit Costs
Implementation of Wellness Policies
National Issues
School Nutrition Specific Issue
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Benefit & Insurance CostsIncreasing Health Care Premiums
Source: Kaiser Family Foundation
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Energy PricesCrude Oil Prices Increasing
Source: Energy Information Admin
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Commodity and Food Prices Milk Prices Increasing
Source: NASS, USDA
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Commodity and Food Prices Corn Prices Increasing
Source: NASS, USDA
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Commodity and Food Prices Wheat Prices Increasing
Source: NASS, USDA
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Commodity and Food Prices Fruit and Vegetables Increasing
Source: NASS, USDA
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DISCLAIMER
SNA is currently in the process of collecting information from school nutrition programs on the costs of producing a meal. The following information is based on preliminary information and will likely change as a information from a broader sample is collected. The following slides are intended to illustrate only the preliminary information and potential impact of increasing costs to produce a meal. This information should not be used as a representation of what is happening nationally.
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What Does it Cost to Prepare a School Meal?
Cost Type Cost
Food Costs $1.15
Non-Food Costs $0.14
Labor Costs $1.26
Indirect Costs $0.11
TOTAL COSTS $2.70
**Preliminary Figures**
Source: SNA Preliminary
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Price Category
Free Reduced Paid
Federal Reimbursement
$2.47 $2.07 $0.23
Commodity Allotment
$0.17 $0.17 $0.17
Price Paid by Students
$0.00 $0.40 $1.68 to $1.98*
TOTAL REVENUE
$2.64 $2.64 $2.08 to $2.38*
Cost of a School Meal vs.Funding/Revenue
* Preliminary Figures
Source: SNA Preliminary
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Price Category
Free Reduced Paid
TOTAL REVENUE
$2.64 $2.64 $2.08 to $2.38*
State Reimbursement
11 states currently provide reimbursements• 5 states have general reimbursements
• 2 states have reimbursements for free and reduced price lunches
• 4 states have reimbursements if certain legislative criteria are met
Cost of a School Meal vs.Funding/Revenue
* Preliminary Figures
Source: SNA Preliminary
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Total Revenue $2.64 $2.64 $2.08 to $2.38*
Total Costs $2.70* $2.70* $2.70*
Difference -$0.06 -$0.06 -$0.62 to -$0.32
Cost of a School Meal vs.Funding/Revenue
* Preliminary FiguresSource: SNA Preliminary
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Total Revenue $2.64 $2.64 $2.08 to $2.38*
Total Costs $2.70* $2.70* $2.70*
Difference -$0.06 -$0.06 -$0.62 to -$0.32
Additional Revenue comes from:
A la carte Sales Vending Sales
Local/State Assistance Catering Sales
Cost of a School Meal vs.Funding/Revenue
* Preliminary FiguresSource: SNA Preliminary
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National Impact
* Preliminary Figures
Source: SNA Preliminary
Price Category
Free Reduced Paid
National ADP 14.9 million
3.0 million
12.6 million
Cost vs. Revenue Difference
-$0.06 -$0.06 -$0.62 to -$0.32
Average National Loss
$849,000 $180,000 $4 - $7.8 million
*Loss of between $5 million and $8.8 million per school day
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Cost of Obesity
Annual U.S. obesity-attributable medical expenditures are estimated at $75 billion in 2003 dollars, and approximately one-half of these expenditures are financed by Medicare and Medicaid. State-level estimates range from $87 million (Wyoming) to $7.7 billion (California). Obesity-attributable Medicare estimates range from $15 million (Wyoming) to $1.7 billion (California), and Medicaid estimates range from $23 million (Wyoming) to $3.5 billion (New York).
Source: Finkelstein, E.A., Fiebelkorn, I. C, and Wang, G. State-Level Estimates of Annual Medical Expenditures Attributable to Obesity. Obesity Research 12:18-24 (2004)