2014-2015 Paid Lunch Equity

Paid Lunch Equity School food authorities (SFA’s) must calculate a weighted average for paid lunches and compare to the difference between Free and Paid USDA reimbursement rates If SFA’s weighted average price for Paid lunches is less than this difference, lunch prices must be increased In any given school year, the new average price may be rounded down to the nearest 5 cents and be limited to a maximum required increase of 10 cents. Most school districts chose to raise prices by 25 cents to allow for faster service and to allow them to skip an increase every other year

What is the Paid Lunch Equity Calculator? It is a tool of the Healthy Hunger Free Kids Act (HHFKA) of 2010 signed into law by President Obama. It must be completed and turned into the ALSDE each year. It makes the determination if lunch prices have to be increased.

Paid Lunch Equity for SY 2014-2015 If SFA’s average price for paid lunches is $2.65 or more in SY 2013-14, it will be in compliance in SY 2014-15 Currently, Huntsville City School’s weighted average price is $2.04, requiring an increase

SY 2014-15 Price Adjustment Calculator   SY 2014-15 Price Adjustment Calculator SY 2013-14 Weighted Average Price Calculator Enter the paid prices and number of paid lunches sold at each price for October 2013. Monthly # of Paid Lunches Paid Lunch Price Monthly Revenue SY 2013-14 Weighted Average Price 248,558 $ 2.00 $ 497,116.00   54,089 $ 2.25 $ 121,700.25 $ - 302,647 $ 618,816.25 $ 2.04 Note: SY 2013-14 Weighted Average Price equal to or above $2.65 are compliant for SY 2014-15. $2.65 is the difference between the Free and Paid reimbursement rates for SY 2013-14. SY 2014-15 Weighted Average Price Requirement Requirement price to the nearest cent Optional price requirement ROUNDED DOWN to nearest 5 cent $ 2.13 $ 2.10 Note: Above prices are based on adjusting SY 2013-2014 price requirement by the 2% rate increase plus the Consumer Price Index (2.27%) Required price increase for SY 2014-15 (with 10 cent cap) $ 2.10

Pricing Estimation Calculator Below is a tool allowing users to manipulate prices to achieve the required new weighted average price.   Monthly # of Paid Lunches Paid Lunch Price Monthly Revenue Weighted Average Price 1. 248,558 $ 2.25 $ 559,255.50 2. 54,089 $ 121,700.25 3. $ - 4. 5. 6. 7. 8. 9. 10. TOTAL 302,647 $ 680,955.75 $ 2.25 I am recommending to the board that we raise the price of Elementary lunches from $2.00 to $2.25 and do not raise the price of Middle or High School lunches at all. This will cause the least financial impact on families and still leave us in compliance. It will also allow us to skip next school year as we did this year.

Questions?