Imagine your teenager tells you the money you gave him isn’t enough to cover a healthy lunch. Upon further inquiry, he reveals the reason, which is that after buying chips, cookies and a drink he couldn’t afford any vegetables. What would your response be? Would you tell him it’s okay then not to buy the vegetables?
Well, that’s exactly what House Appropriations Committee just did.
Two USDA studies show that school districts typically underprice their snack bar sales known as competitive food programs, to the tune of 29-39%. Not every district does, but the typical district does.
So, for example, if a candy bar should be priced at $1.50, students might pay only $1. School foodservice departments have little other revenue beside funds from the National School Lunch Program to balance out that loss, so it is from there that the money is most likely to come. It is highly unlikely this siphoning of funds from healthy meals to snack-bar food has been intentional. Instead, many district foodservice directors simply do not understand how to properly account for their separate programs.
But whatever the reason, the reality is that many school districts have been taking federal money, the majority of which is supposed to be used for nutritious foods for low-income kids, and using it to cover losses on cash sale items like chips, cookies and sugary drinks. Equally shocking is that according to USDA, the money involved each year runs in the billions of dollars. But the moral irony is as staggering as the financial one.
Well, it’s not just a moral lapse or questionable use of money anymore. It’s illegal. Congress amended the National School Lunch Act (NSLP) in Sec. 206 of the Healthy and Hunger Free Kids Act of 2010 to require districts to price their competitive foods high enough to cover the cost of selling those foods on campus. Once fully implemented, USDA estimates nearly 1 million price-sensitive kids will switch from eating competitive foods to eating NSLP meals and over $2 billion a year will be shifted from competitive foods back to the NSLP. Thank goodness. Problem solved, right?
Well, apparently not. I was shocked to hear the School Nutrition Association (SNA) and their California chapter have been arguing, and that this week the House Appropriations Committee agreed, that districts do not have enough money to pay for the nutrition improvements in HHFKA, improvements like increasing vegetables and whole grains in breads and pastas. Two billion a year really should be plenty of money to pay for these nutrition upgrades for kids for the schools involved. But—of course—if districts haven’t stopped siphoning money off the NSLP to cover competitive food losses, the money isn’t there to use.
So I called USDA and SNA to ask how districts are doing in repricing their competitive foods. I asked what kind of outreach the Department and the Association have been doing to let districts know about Sec. 206 and how to correctly price their competitive foods so that they at least break even. What were the answers?
SNA was aware of Sec. 206 but said that, to its knowledge, it hadn’t received any information about it from USDA and SNA could not recall any webinars or training they had done on it. As for USDA, though it did not have time to respond by my deadline, in its press release on May 20 the Agency listed the new money available to districts to help pay for the nutrition improvements the districts are now claiming they can’t afford to implement. The press release didn’t even mention Sec. 206.
I know USDA has been very busy simultaneously implementing the HHFKA and fighting a nonstop barrage of attacks from industry and certain members of Congress who want to change the law by thwarting its implementation. And, I know that implementing Sec. 206 is not as easy as waiving a wand. USDA is going to have to help directors who have never tracked revenues and expenses on a program-by-program basis before.
But given the moral and financial imperative here, why didn’t USDA prioritize 206 when the Agency has shown over and over that it is truly dedicated to implementing HHKFA and improving nutrition for kids?
Foodservice directors care about kids too, and they too want them to have healthy food. So why didn’t SNA ask the Appropriations Committee for money for USDA to provide training and technical assistance to districts to train foodservice directors on Sec. 206 and redirect billions back into the NSLP? Seriously, what is the disconnect?
Sec. 206 was written in the Senate. Perhaps, then, the Senate will see its value and legal and moral imperative. Perhaps when the senators are asked to waive requirements for more nutritious foods in schools, they will devise a more clever solution. Perhaps they will find one that helps districts understand how to use the money they already have to finance better food for their kids, so the kids can go on and learn important things, like math and accounting. And accountability.
