As next school year gets closer and the financial future of sponsors’ nonprofit food service accounts remains uncertain, CDE’s School Nutrition Unit asks that districts consider the following when budgeting for next school year:

• Lower reimbursement rates are anticipated under the traditional operations of the School Breakfast Program and National School Lunch Program in School Year 2022-23. Student meals will also be reimbursed based on free, reduced-price, or paid eligibility status.
• Continued unpredictability with the supply chain could result in additional price increases on food and supplies. Districts are encouraged to check base-year contracts with food vendors to determine if price escalation language is included. It is also recommended to include price escalation language in any new solicitation released for next school year.
• It is allowable for surplus funds in the nonprofit food service account to be held as a safeguard for the next school year. Surplus funds cannot be used to:
  • pay back the general fund for previous transfers
  • cover unpaid meal charges/delinquent debt
  • cover student paid meals
  • cover adult/teacher meals

For resources and training, visit the financial management webpage. For financial questions, contact Lyza Shaw at [email protected]. For procurement questions, contact Jenny Herman at [email protected].