P.O. BOX 2120



September 29, 2006



Division Superintendents



Billy K. Cannaday, Jr.

Superintendent of Public Instruction



School Breakfast Program - State Funding Incentive Payment for Increased Student Participation 2005-2006


The General Assembly provided $892,020 per year in fiscal years 2007 and 2008 to continue state funding for the school breakfast program as an incentive to improve the level of student participation. This incentive funding is available to any school division that increases its breakfast participation above the baseline established in school year 2003-2004 (base year). Each school divisions baseline is unique to its base year breakfast participation. The level of funding is $0.20 per meal served above the baseline number of meals served per student for each division.


The current fiscal years payment for the breakfast program is based upon the prior school years participation data. For fiscal year 2007, the actual participation from school year 2005-2006 was compared to the base year to determine the level of funds earned by each school division. The attached spreadsheet (Attachment A) demonstrates this calculation for each school division.


School breakfast program participation in 2005-2006 was 19% greater than the base year participation and was nearly 7% greater than 2004-2005 participation. The fiscal year 2007 appropriation is not sufficient to fully fund the incentive payment at $ 0.20 per meal to each school division. The Department of Education will reimburse school divisions at a pro-rated rate in October. In the event additional funds are not made available, the pro-rated payment will remain unchanged. The attached spreadsheet (Attachment A) also provides, in the final column, the pro-rated incentive payment that will be made to each school division.

The state breakfast incentive funds will be paid via electronic data interchange (EDI) on October 16, 2006. This payment will appear on the EDI notice as State School Breakfast Incentive Funds revenue source code 240347.


Funds received by school divisions pursuant to this program must be credited to the school nutrition program and may not be used for any other purpose. The school nutrition program financial reports submitted to the Department of Education will be monitored to determine compliance with this provision.


Further, school divisions receiving these state funds must comply with the following requirements stated in the appropriation act (Chapter 951, 2005 Acts of Assembly).


In order to receive these funds, school divisions must certify that these funds will be used to supplement existing funds provided by the local governing body and that local funds derived from sources that are not generated by the school nutrition programs have not been reduced or eliminated. The funds shall be used to improve student participation in the School Breakfast Program. These efforts may include, but are not limited to, reducing the per meal price paid by students, reducing competitive food sales in order to improve the quality of nutritional offerings in schools, increasing access to the School Breakfast Program, or providing programs to increase parent and student knowledge of good nutritional practices. In no event shall these funds be used to reduce local tax revenues below the level appropriated to school nutrition programs in the prior year. Further, these funds must be provided to the school nutrition programs and may not be used for any other school purpose.


Attachment B to this memorandum is a certification statement that must be returned to the Department of Education no later than December 31, 2006. Signing and submitting this statement completes the documentation required to participate in this program. Any school division that receives these state funds and does not complete the certification form and does not reflect the deposit of such funds to the school nutrition program account in their semi-annual financial statement submitted to the department in January 2007, will have these funds deducted from a future payment for basic aid. This certification statement should be submitted, no later than December 31, 2006, to:


Lynne Fellin

Acting Director of School Nutrition Programs

Department of Education

P.O. Box 2120

Richmond, VA 23218-2120


Please direct requests for technical assistance or resources regarding the school breakfast program to Lynne Fellin, acting director of school nutrition programs, or the divisions assigned school nutrition specialist at (804) 225-2074. Questions regarding the funding formula should be directed to the budget office staff at (804) 225-2025.