The Perfect Storm…
Download
1 / 18

- PowerPoint PPT Presentation


  • 152 Views
  • Uploaded on

The Perfect Storm… A forecast for the Child Nutrition Programs in Broome & Tioga County. Created for ASBO May 21, 2008. Presented by: The Rock on Café Coalition. Is the Child Nutrition Program about to be caught in the Perfect Storm ?. Several factors have begun

loader
I am the owner, or an agent authorized to act on behalf of the owner, of the copyrighted work described.
capcha
Download Presentation

PowerPoint Slideshow about '' - marli


An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript
Slide1 l.jpg

The Perfect Storm…A forecast for the

Child Nutrition Programs in

Broome & Tioga County

Created for ASBO

May 21, 2008

Presented by: The Rock on Café Coalition


Is the child nutrition program about to be caught in the perfect storm l.jpg
Is the Child Nutrition Program about to be caught in the Perfect Storm?

Several factors have begun

to circulate in the Country

that have the potential to

converge upon the Child

Nutrition Program at one time.

If these factors collide with no

“rescue” efforts, the program’s

future will be in jeopardy.


Are conditions favorable for the perfect storm l.jpg
Are conditions favorable for the Perfect Storm?

  • The Child Nutrition Program

    was the first “homeland

    security” program; it was

    authorized during Post WW ll

    era with the intent of

    “safeguarding the well-being

    and security of the nation.”

  • The Child Nutrition Program

    thrived for nearly 6 decades

    under the guiding principle of

    “this is the right thing to do for

    students.”


Are conditions favorable for the perfect storm4 l.jpg
Are conditions favorable for the Perfect Storm?

  • In the early 80s, the massive Federal budget cut threatened the program.

  • Nationwide, the program struggled to operate and began to expand the sale of “extra foods and beverages to students” to meet financial obligations; A la Carte meal service began to produce relief from the budget cuts.


Are conditions favorable for the perfect storm5 l.jpg
Are conditions favorable for the Perfect Storm?

  • A la Carte program has thrived.

  • Schools made money selling foods

    and beverages to students.

  • Students developed an appetite for

    A la Carte/competitive foods.

  • Schools developed an appetite

    for revenues from the sale of

    A la Carte/competitive foods.

  • Stigma associated with free or reduced price meals

  • Indirect costs have been assessed to the program


Slide6 l.jpg

Are conditions favorable for

the Perfect Storm?

Over the past 20 years, there has been a

cultural, nutritional, operational and financial

shift in priorities surrounding the

Child Nutrition Program.

In many school districts, the philosophy of

“It’s the right thing to do for children”

had been replaced with the priority of

“How much revenue can be generated?”


What are the factors that may converge to create the perfect storm in the child nutrition program l.jpg
What are the factors that may converge to create the Perfect Storm in the Child Nutrition Program?


Factor 1 operating costs are increasing l.jpg
Factor 1:Operating costs are increasing.

  • Food Costs

  • Fuel/Delivery Costs

  • Service/maintenance

  • Labor Costs

  • Employee Benefits

  • More Districts are being

    charged indirect costs

  • Other costs


On the school lunch tray l.jpg
On the School Lunch Tray

Bread

Up 12%

Milk

Up 17%

Pasta

Up 13%

Fresh Produce

Up 15%


Slide10 l.jpg

What Does it Cost to Prepare a School Meal?

Cost TypeCost

Food Costs $1.15

Non-Food Costs $0.14

Labor Costs $1.26

Indirect Costs $0.11

TOTAL COSTS $2.70

(national school lunch cost average: $2.60 to $3.10)

**Preliminary

Figures**

Source: SNA Preliminary


Factor 2 program revenues are decreasing l.jpg
Factor 2:Program revenues are decreasing.

  • Federal Reimbursement, has not kept pace with cost of living.

  • Commodities/entitlement dollars remain limited.

  • A la Carte Sales have plummeted as less healthful

    foods and beverages have been replaced with more

    healthful options.

  • Adult Meal Sales are declining

    as districts are required to increase

    adult meal prices to ensure CN funds

    are used only to benefit students.


Factor 3 program revenues are decreasing l.jpg
Factor 3:Program revenues are decreasing.

  • Catering (where permitted) generates minimal revenues

  • State Reimbursement has not seen an increase in 20 years

  • Enrollment Numbers are down leading to a smaller customer base

  • Vending and ala carte sales are decreasing


Factor 4 student meal charges are on the rise l.jpg
Factor 4 :Student meal charges are on the rise.

  • Student meal charges have typically been absorbed by the cafeteria fund.

  • In the past, a considerable amount of student meal

    charges were the result of issues not related to

    hunger.

  • On average charges add up to $1,200 per building of unpaid charges add end of the school year.


Factor 5 child nutrition administrators are being held to an impossible standard l.jpg
Factor 5:Child Nutrition Administrators are being held to an impossible standard.

Example:

Average cost to produce a school lunch is $2.70

Average cost to a paying student is $1.75

Free reimbursement falls short by $ .14

Reduced reimbursement falls short by $ .14

Paid rate falls short by $.64

Breakfast- Ave Food Cost alone approx. $1.00

Where will the revenues to offset the losses come from?


Is the perfect storm in the forecast l.jpg

If the Child Nutrition Program continues on its current course…

Increased operating costs

Increased indirect costs for many districts

Revenue sources are limited

Other Sales are decreasing

Current market conditions/higher food costs

No State reimbursement increase in over 20 years

Federal reimbursement is not adequate to support program costs

Many Programs are already under-staffed

Is the Perfect Storm in the forecast?


Slide16 l.jpg

Unlike the course…real Perfect Storm, where noperson or thing could control or prevent it, collectively we can minimize the damage of this Perfect Storm for our programs!


Recommendations l.jpg

Continue to exercise due diligence to prevent the course…

Perfect Storm.

Examine costs (labor, food, other) and make

changes in areas that do not compromise the

quality of service or participation.

Maximize reimbursable meals.

Continue to improve our cooperative purchasing.

Significant meal price increases will be needed.

Charge policy that is consistent among schools.

Recommendations


We need to be proactive l.jpg

Let’s consider these factors as course…

opportunities rather than obstacles.

We appreciate your time and support-to insure that Nutrition continues to play an integral part of our students educational process!

THANK YOU!

ROCK ON!!

We need to be Proactive!