4J Stadium. June - September 1999

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Reports and Recommendations, June 16, 1999 Page 15 RATES FOR SPECIAL EDUCATION STUDENTS Elementary Learning Center $7,416 plus the cost of related services Elementary Regional Centers $8,217 plus the cost of related services Middle School Self - Contained $8,009 plus the cost of related services Middle School Resource Room $6,269 plus the cost of related services High School Resource Room $6,649 plus the cost of related services and Self- Contained High School Life Skills $7,646 plus the cost of related services 4. Set School Lunch Prices for the 1999 -2000 School Year Staff is proposing to increase school lunch prices for 1999 -00 from $1.50 to $1.60 for elementary schools and from $1.75 to $2.00 for middle and high schools. The district last raised lunch prices for elementary and middle school students in 1997- 98 and for high school students in 1992 -93. The price increase is expected to contribute an additional $20,000 in revenue to the food service program in the first year, helping to offset the impact of higher labor and food costs and lower enroll- ment on program profitability. In November, the board received a report on the status of the food services program and reviewed the board's 1977 goal that the program be self - supporting and not receive general fund support. As we discussed in November, the district has implemented many innovative strategies over the years to meet this goal, including contracting out the management of the food service program. Still, the program has produced only limited profitability in recent years, and it is increasingly difficult to support increases in wages and benefits for food services staff that are comparable with other classified employees. The food service program generated an operating profit of $27,000 in 1997 -98 and projected a year -end 1998 -99 profit of $26,000 at the time of the November board report. The program is currently projecting an operating loss of about $30,000 for the year despite an increase in revenues. This reflects both increased labor costs and higher food costs resulting from new USDA regulations which require additional food offerings. Increases in revenue represent significant efforts to improve meal counts in spite of lower elementary and middle school enrollments. In February 1999, the board ratified a two -year collective bargaining agreement with OSEA, which increased the total cost of compensation for food service employees by 5.8% in 1998 -99 and 5.7 % in 1999 -00. To support the increases in salary and benefits, I recommended that the board provide the food service program additional resources through increased school lunch prices and a limited transfer of funds from the general fund of up to $100,000 in each of the two years of the current OSEA contract. Raising prices is expected to lower participation in the school lunch program by 2% in the first year. An elementary school lunch price of $1.60 compares to a range of elementary lunch prices for similar districts from $1.25 to $1.65. A secondary lunch price of $2.00 compares to a range of middle school lunches from $1.50 to $1.90 and of high school lunches from $1.75 to $2.05. For 1999 -00, USDA reimbursements are estimated to be $1.995 per meal for students participating in the free and reduced price lunch program.