A Dollars and $ense Approach to Financing

Wellness

CNIC 2007Disclaimer

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“But our students are used to a choice of products”

Choice

“And we still need the cash”

Economics

“We want better health for our students”

Nutrition

The School Nutrition The School Nutrition Director’s JuggleDirector’s Juggle

School’s Dilemma

SND must SND must juggle these juggle these

three …three …

… … without without dropping any dropping any

one of the one of the balls.balls.

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NUTRITION STANDARDS

PHYSICALACTIVITY

NUTRITIONEDUCATION

OTHER SCHOOL RELATED ACTIVITIES

FOOD GROUPS TO ENCOURAGE

DetermineFinancial

ImplicationsNo

Added

Costs

AddedCosts

SchoolWellnessPolicies

4

$0.00

$0.20

$0.40

$0.60

$0.80

$1.00

$1.20

$1.40

$1.60

$1.80

1980 1990 2000 2006

BreadApplesTomatoes

Costs Increase Over Time

5

$0.00

$0.50

$1.00

$1.50

$2.00

$2.50

1992-93 1999-00 2006-07

FreeReducedPaid

Reimbursement Rate Increases

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DETERMINING FINANCIAL IMPLICATIONS OF FGTE

• Fresh fruits and vegetables– Individual packaging

• Apple slices ↑ $13,728• Baby carrots ↑ $20,580• Orange slices ↑ $24,450

– Increased frequency – menu 2X as often• Kiwi ↑ $5,440• Broccoli crowns ↑ $6,250

• Estimated added costs = $70,448

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DETERMINING FINANCIAL IMPLICATIONS OF FGTE

• Whole grains– Brown rice ↑ $ 3,255– Frozen foods

• Burrito ↑ $ 8,910• Corn Dog Nugget ↑ $10,728• Pepperoni Pizza ↑ $45,480

– Bakery products• Loaf bread ↑ $ 60• Sub Rolls ↑ $ 5,400

• Estimated added costs = $73,833

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DETERMINING FINANCIAL IMPLICATIONS OF FGTE

• Implementing New Look of School Milk– Using the online tool developed by

ADADC MidEast– www.drink-milk.com/nlsm– Determines whether additional costs are

incurred• Example: Added Costs = $104,612

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10

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NUTRITION STANDARDS

PHYSICALACTIVITY

NUTRITIONEDUCATION

OTHER SCHOOL RELATED ACTIVITIES

FOOD GROUPS TO ENCOURAGE

DetermineFinancial

ImplicationsConsiderations

and OptionsNo

Added

Costs

Implement in Phases:High SchoolsMiddle SchoolsElementary Schools

AddedCosts

Increase Meal Prices

Increased Revenue from Participation

Increased Commodity Allocations

Increase A la Carte Prices

SchoolWellnessPolicies

12

1. Increase Meal Price(s)Example:• Served 2,005,858 lunches previous

year• Increase lunch $.05

– Generates $100,293• If breakfast is also increased $.05• Served 221,440 previous year

– Generates $11,072

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2. Increased Revenue from Participation

• Example: Participation increased 1.5% in elementary and 5% in secondary schools with New Look

• Increased federal revenue could increase:– Elementary schools $20,047– Secondary schools $60,247

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3. Increased Commodity Allocations

• Commodity allocations are based on previous years total lunches served

• Elementary 1.5% ADP increase, secondary 5%

• Participation increases results in 158,956 more lunches served

• $.20 commodity rate • Results in $31,791 more allocated

dollars the following year

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4. Increase A la Carte Prices• Select top sellers previous year

– Lowfat cookie – sold 691,200 – Baked chips – sold 192,000 bags– Canned fruit juice – sold 288,000 cans

• Increase unit price $.05 each– Examples:

• Lowfat cookie from $.55 to $.60• Baked chips from $.70 to $.75• Canned fruit juice from $.50 to $.55

• Generates $58,560

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NUTRITION STANDARDS

PHYSICALACTIVITY

NUTRITIONEDUCATION

OTHER SCHOOL RELATED ACTIVITIES

FOOD GROUPS TO ENCOURAGE

DetermineFinancial

Implications

Considerationsand Options

NoAdde

dCosts

Implement in Phases:High SchoolsMiddle SchoolsElementary Schools

AddedCosts

Increase Meal Prices

Increased Revenue from Participation

Increased Commodity Allocations

Increase A la Carte Prices

SchoolWellnessPolicies

17

Revenue Generated With Implementation

• Lunch price increased $100,293• Breakfast price increased 11,072• Commodity allocation increase 31,791• A la Carte price increased 58,560

TOTAL $201,716Added Implementation Costs $248,893

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Additional Considerations

• Lunch and breakfast participation increases may result in higher meals per man hour

• Gain positive media attention

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Summary• Not one solution fits all• Analyze all options available• Communication with wellness

committee is critical• Bid specifications are important• All are important steps towards

improving student’s overall nutrition

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Disclaimer• The information presented is general in nature and

does not take into account the specific or unique circumstances that affect any particular school district or geographic region.

• The numbers used are used for illustrative purposes only and do not necessarily reflect the results that would occur at any specific school district or location.

• The foregoing material is not intended to be a substitute for legal or other advise that would address the particular facts and circumstances effecting individual school districts.

“When we make our decisions in the best

interest of children, we will always make the

right decision.”-Dr. W. Randolph Nichols, Superintendent of Schools