Food for Thought Spring 2022

7 Reasons Why Universal School Meals are Worth the Investment

7. Equitably -Funded Meals are Critical for the Survival of School Nutrition Programs Folks in the school nutrition world face an uncomfortable reality: the tools we used to rely on aren’t working anymore. Shrinking our budget is no longer sustainable — there are no more costs to cut. Manufacturers and distributors aren’t renewing bids because costs are expected to rise by 12- 15%. Based on data from the Bureau of Labor Statistics National Compensation Survey, accommodation and foodservice industry compensation costs for the 12-month period ended June 2021 were up 6.2%, compared with 3.1% overall. Let’s apply 5% inflation to overhead. That triggers at least a 10% increase in the cost of lunch. We’d have to price our lunch at $4.10 per meal (a 49% increase from the $2.75 example rate paid- eligible families currently pay). How does that impact families? The table below shows what families might pay based on the number of children in the home:

School nutritionprograms are facing these challenges right now. A universal school meals program answers every single one of them. The question isn’t if we need equitably-funded school meals. It’s how soon can we implement them for good. Our Children are Worth the Investment

on our programs the way we do today. It’s impossible to set and forget a budget given the velocity of changes we see in the supply chain. We have to monitor costs in real- time and evaluate the impacts our decisions about menus have on food, labor, and supply costs. We’re in the business of providing nutritious meals to millions of families quickly — if any operation understands efficiency, it’s ours. Our industry is teeming with smart people who have the right combination of nutrition and business expertise. We use software as smart as MenuLogic K12 to optimize our funds, so we

can give kids the best options without wasting resources. An investment in equitably- funded meals is one that will be used wisely and couldn’t come at a better time. I believe people can see the demand for change more than ever. Let’s use this moment to make it happen. Ask your legislators to support universal school meals. Whether you live in a big city, rural town, or the suburbs, there’s a school serving your neighborhood. Proper nourishment is a need that transcends our differences. That’s why equitably-funded meals benefit every community, no matter how much money the families who live there make.

For paid-eligible families, those numbers are not sustainable. The natural consequence will be less most participation in our programs. But the rising costs of running a program won’t go away just because our patrons do. What is the answer? Shutting us down? The implications of school nutrition programs selling less or going out of business have far- reaching impacts: • Students in the school district lose access to meals regardless of their Free, Reduced, or Paid status. • Nutrition program personnel receive pay cuts or lose their jobs. • Local food and supply manufacturers, distributors, and farmers miss out on reliable business. • Manufacturers and distributors incentivized to work with schools through USDA commodity programs pull out of school markets, creating a widespread scarcity of options.

technology-based assistance. We must request documents to verify application authenticity and submit lengthy proof to state and federal auditors that we properly followed protocol. Once students are enrolled, we track them by income (again). Students are charged depending on their Free, Reduced, or Paid status, but those statuses can change, requiring voided or reclaimed transactions. School nutrition departments collect money in various ways (online, with cash, or by check), process money and deposits, and monitor issues. These tasks require administrative labor to write and distribute letters, make phone calls, manage text systems, send emails, etc. But there’s more than just a financial cost to this admin work. Chasing families down for payment turns our front-line customer service personnel into debt collectors. How can we possibly expect these transactions to be positive? Why would these customers want to continue buying from us when we hound them for money (or proof of their financial insecurity)? The solution is to eliminate the pay-by-income rates and make school meals equitably accessible to all students. Then students can just be “students” — not Free, Reduced or Paid.

I know. It’s complex.

We’ve to understand the rapidly changing impact that variable costs have never needed

Let’s keep the conversation going! Share this article with your administration, staff, parents, and most-importantly, your legislators.

Projected Cost of School Meals Per Month Without Universal Meal Program Number of Children Cost per month at: $4.10 for lunch and $2.60 for breakfast:

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$134.00 $268.00 $402.00 $536.00

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