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
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$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
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$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
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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
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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