USDA PROPOSED ELIMINATION OF THE SCHOOL DISTRICT’S UNIVERSAL FEEDING PROGRAM FACT SHEET AND TALKING POINTS 10/22/2008 FACTS: In a letter dated August 12, 2008, James Harmon, Regional Director, Special Nutrition Programs, USDA, informed Pa. Department of Education’s (PDE) Vonda Fekete, State Director for the Child Nutrition Programs that the USDA intends to terminate the Universal Feeding Pilot Program (the “Paperwork Reduction Pilot”) that has operated in the School District of Philadelphia (SDOP) since 1991. In cooperation with the USDA’s Food and Nutrition Service, the District began the Universal Feeding Program in 1991 in order to develop a more streamlined alternative method for counting and claiming meals served under the National School Breakfast and School Lunch Programs. In essence, the program utilizes a third-party socioeconomic study to determine school-wide eligibility for participation in the Breakfast and Lunch programs. This is done in lieu of requiring separate Application for Meal Benefits from each household. Prior to 1991, individual Application for Meal Benefits were sent to parents and households to enroll students in the meal program. Once completed, parents submitted the application to the School District, who in turn would determine through various forms of data and a multitude of criteria, whether an individual child or household would be eligible to receive meals for free or at a reduced cost if the family met the necessary eligibility guidelines. Under the Universal Feeding Program, the process of determining eligibility was re-engineered and streamlined. Rather than rely on individual determination of applicants, a comprehensive socioeconomic study is used to determine overall eligibility for students. This method eliminated cumbersome paperwork and USDA PROPOSED ELIMINATION OF THE SCHOOL DISTRICT’S UNIVERSAL FEEDING PROGRAM FACT SHEET AND TALKING POINTS 10/21/2008 administrative layers for parents and for the School District to ensure that every child is able to receive meals at no cost. The District recently invested $550,000 to conduct a new socioeconomic study, carried out by The Reinvestment Fund, in order to establish updated eligibility percentages for free and reduced price meals that went into effect with the 2007-08 school year. The USDA agreed to allow the District to use its current socioeconomic study data to determine eligibility through the 2009-10 school year. The August 12, 2008 USDA letter informed the District that beginning in September 2010 (the 2010-011 school year), the District will be required to return to the standard household application system for counting and claiming meals. The District has more than 167,000 students in schools it operates throughout the city, not including charter schools. Currently, the District serves an average of 50,000 breakfasts and 115,000 lunches every school day. If the Universal Feeding program is eliminated, thousands of Philadelphia students will have to submit an Application for Meal Benefits in order to continue to receive free and /or reduced price breakfast and lunch. If this happens, the District will work hard to make sure NO students are impacted. However, the risk that certain children will not receive important nutritional services will be much greater than it has been under the Universal feeding program. The School District’s Office of Food Services estimates that about 67,000 of the 120,000 students currently eligible under the guidelines established by the socio-economic study would be required to fill out the Application for Meal Benefits in order to receive meals for free or at a reduced cost during the 2010-11 school year. The remaining students (about 53,000) will automatically be eligible to receive a lunch and/or breakfast at no cost because they are already known to be in families receiving food stamps and/or Temporary Assistance to 2 USDA PROPOSED ELIMINATION OF THE SCHOOL DISTRICT’S UNIVERSAL FEEDING PROGRAM FACT SHEET AND TALKING POINTS 10/21/2008 Needy Families (TANF) benefits. This process is called “Direct Certification.” Talking Points: The District is disappointed with the decision by the USDA. We will continue to fight to reverse the decision because we believe it replaces an efficient and streamlined process and policy with an inefficient and ineffective process that costs more money to implement, and runs a greater risk of denying essential nutritional services to eligible Philadelphia children. At the same time, however, we are creating contingency plans for this situation to ensure that our children’s needs will be met. On September 26, 2008 PDE sent a letter of appeal to the USDA requesting reconsideration of the decision to discontinue the Universal Feeding program. In a letter dated October 20, 2008 the USDA notified PDE that the appeal has been rejected. SDOP sees three major problems with the USDA’s recent decision: Problem #1: Eliminating Universal Feeding will have a negative impact on kids in Philadelphia. If the USDA’s decision goes into effect beginning September 2010, this is likely to have a negative impact on students, District Food Services operations, and the School District as a whole. Thousands of households within the District have not had to complete an Application for Meal Benefits for nearly 17 years. This is an entire cycle of students from kindergarten through twelfth grade. During those 17 years, all students in the Universal Feeding sites have eaten at no cost and, as a result, more students are eating a nutritionally balanced meal, which is the foundation for preparing a child to learn. 3 USDA PROPOSED ELIMINATION OF THE SCHOOL DISTRICT’S UNIVERSAL FEEDING PROGRAM FACT SHEET AND TALKING POINTS 10/21/2008 Only the District’s neediest schools participate in the Universal Feeding program—200 of the District’s more than 280 schools. In the first year of the Universal Feeding pilot the district realized a 14 percent increase in lunch participation in elementary schools, a 45 percent increase in middle schools and 180 percent increase in high schools. Overall breakfast participation increased by 26 percent. The application process would negate the positive effects of the pilot especially at the middle and high school levels. Problem #2: Expected reduction in the Free and Reduced Breakfast/Lunch program eligibility could adversely impact Philadelphia’s ability to receive funding for other federal and state programs A decrease in the free and reduced price eligibility percentages will have widespread impact since School District eligibility for other grant funding is often based on the number of low income students in the District, which is determined by proxy by utilizing National School Breakfast/Lunch Program data. Therefore, a decrease in eligibility percentages will cause the School District to lose millions of dollars in other state and federal grant funding. For example, Federal E-rate funding for School District educational technology is tied directly to the free and reduced cost meal eligibility percentages. Title 1 funding is distributed to buildings within the school district based upon the number of low-income students. Problem # 3: Changing the application process will increase bureaucratic delays, increase paperwork and unnecessarily complicate the eligibility process. The original name of the Universal Feeding pilot was the “Paperwork Reduction Pilot” aimed at streamlining a paper-intensive and prolonged process. 4 USDA PROPOSED ELIMINATION OF THE SCHOOL DISTRICT’S UNIVERSAL FEEDING PROGRAM FACT SHEET AND TALKING POINTS 10/21/2008 Given the District’s experience with the old household application system, it is highly likely that requiring the District to once again collect individual household applications may result in thousands of eligible children not receiving a meal because of the added layers of bureaucracy that accompany such an eligibility process. The District would incur significant direct and indirect cost in training over two hundred principals or designees to the Application for Meal Benefits process. In addition, a new generation of parents would for the first time be introduced to the old process, adding confusion and additional costs. Under the streamlined process, the eligibility data collected by the 2006-07 socio-economic study is valid for four years. Elimination of the program will necessitate redistribution of funds, currently used to enhance existing programs, to offset increased cost associated with meal benefit application process. 5