BILL ANALYSIS Ó AB 1240 Page 1 Date of Hearing: May 13, 2015 ASSEMBLY COMMITTEE ON APPROPRIATIONS Jimmy Gomez, Chair AB 1240 (Bonta) - As Amended May 4, 2015 ----------------------------------------------------------------- |Policy |Education |Vote:|6 - 0 | |Committee: | | | | | | | | | | | | | | |-------------+-------------------------------+-----+-------------| | | | | | | | | | | | | | | | |-------------+-------------------------------+-----+-------------| | | | | | | | | | | | | | | | ----------------------------------------------------------------- Urgency: No State Mandated Local Program: YesReimbursable: Yes SUMMARY: This bill requires each school district or county office of education maintaining any kindergarten through grade 12 to offer breakfast at schools where at least 40% of the pupils enrolled AB 1240 Page 2 at the school are considered "needy." Specifically, this bill: 1)Requires, from July 1, 2016 to June 30, 2017, a nutritionally adequate breakfast to be made available each schoolday for sale or at no cost to pupils at a school where at least 40% of the pupils are considered needy. Specifies that beginning July 1, 2017, this requirement applies only at schools where at least 40%, but less than 60%, of the pupils enrolled are needy children. 2)Requires, from July 1, 2017 to June 30, 2018, a nutritionally adequate breakfast to be made available each schoolday for sale or at no cost to pupils at a school where at least 60% of pupils are considered needy. Requires breakfast to be available after instruction has begun for the schoolday. Specifies that beginning July 1, 2018, this requirement applies only at schools where at least 60%, but less than 80%, of all pupils enrolled are needy children. 3)Requires, on and after July 1, 2018, a nutritionally adequate breakfast to be made available each schoolday at no cost to pupils at a school where at least 80% of the pupils are considered needy. Requires breakfast to be available after instruction has begun for the schoolday. 4)Specifies that no pupil shall be required to consume a meal and school is not required to set aside instructional time for the purpose of serving breakfast. FISCAL EFFECT: 1)Proposition 98/GF costs, likely in the millions, related to AB 1240 Page 3 increased program participation and school breakfast meal reimbursement rates. Actual costs will be determined by the number of meals served. The 2013-14 state meal reimbursement rate is $0.22 per meal. For illustration, assuming a 5 percent increase in the number of breakfasts served, state cost would be approximately $2.4 million. 2)General Fund (non-98) administrative costs to the California Department of Education of approximately $600,000. CDE indicates they would need one limited-term position and two ongoing positions to assist with breakfast menu approvals, application approvals, waiver requests and monitoring. Additionally, in order to meet new USDA Administrative Review requirements, CDE estimates two additional consultants would be needed, assuming these programs participate in the federal School Breakfast program. CDE estimates are based on 151 school sites that currently participate in the National School Lunch program but do not serve breakfast. The sponsor of the bill indicates approximately 664 schools are not serving breakfast. CDE costs could increase if participation rates are in this higher range. COMMENTS: 1)Background. Existing law requires local educational agencies to provide one nutritiously adequate Free and Reduced Price Meal (FRPM) to needy children once a day during each schoolday. A needy child is defined as a child who meets the federal eligibility for FRPM. For the free meal category, household income must be at or below 130% of the federal poverty guidelines. For the reduced-price category, household income must be between 130% and 185% of federal poverty guidelines. School meal programs are funded predominantly by the United States Department of Agriculture through its National School Lunch and School Breakfast Program and supplemented by state AB 1240 Page 4 funds. These programs are federal entitlement programs, which mean that allocations are not fixed; federal funds will be provided as long as recipients meet income eligibility criteria. The federal government also offers a higher reimbursement rate for schools enrolling higher levels of eligible students, which enables those schools to provide meals to all pupils. According to the CDE, in 2013-14, the state received $447 million in federal funds for School Breakfast Programs and $1.35 billion in federal funds for the School Lunch Program. State funds augmented the program by $53 million for the School Breakfast Program and $101 million for School Lunch Program. 2)Purpose. This bill requires, beginning July 1, 2016, all schools where at least 40% of the pupils enrolled at the school are eligible for FRPM to offer breakfast. The following year, schools with 60% FRPM eligible students are required to offer breakfast with the additional requirement that the meal be offered after instruction has begun. By 2018, schools with at least 80% FRPM eligible students are required to provide breakfast free of charge and offer the meal after instruction has begun. According to the sponsor, the California Food Policy Advocates (CFPA), the purpose of the bill is to increase the level of participation in the School Breakfast Program. According to the CDE, participation in the program is about half of the participation in the School Lunch Program. Analysis Prepared by:Misty Feusahrens / APPR. / (916) AB 1240 Page 5 319-2081