BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 95
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          Date of Hearing:  April 1, 2009

                           ASSEMBLY COMMITTEE ON EDUCATION
                                Julia Brownley, Chair
                 AB 95 (Torlakson) - As Introduced:  January 6, 2009
           
          SUBJECT  :   School meals:  reimbursement.

           SUMMARY  :   An urgency measure that appropriates $19,500,000 to  
          fully fund all free and reduced price meal reimbursement claims  
          for the 2008-09 fiscal year; and, specifies the Superintendent  
          of Public Instruction shall notify the Legislature in years when  
          the annual funding is insufficient to fully fund all eligible  
          reimbursement claims.  Specifically,  this bill :  

          1)Specifies, as an urgency measure, that if the Superintendent  
            of Public Instruction determines that the appropriation set  
            forth in the annual Budget Act is insufficient to fully fund  
            all eligible reimbursement claims, the California Department  
            of Education shall notify the Legislature of the statutory  
            funding amount necessary to reimburse school districts at the  
            rate prescribed for providing nutritious meals to all needy  
            students.

          2)Appropriates $19,500,000 to fully fund all free and reduced  
            price meal reimbursement claims for the 2008-09 fiscal year. 

           EXISTING LAW  : 

          1)Requires each school district or county superintendent of  
            schools maintaining any kindergarten or any of grades 1 to 12,  
            inclusive, to provide one nutritionally adequate free or  
            reduced-price meal for each needy pupil during each schoolday.

          2)Permits a school district or county office of education to use  
            funds made available through any applicable federal or state  
            program or to use its own funds to provide the required meals.

          3)Requires the CDE to award grants, as specified, to school  
            districts and county offices of education for the initiation  
            and expansion of school breakfast programs and summer food  
            service programs.

           FISCAL EFFECT  :   The measure specifies an appropriation of  
          $19,500,000 in the 2008-09 fiscal year.








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           COMMENTS  :   The National School Lunch Program was instituted in  
          1946 and expanded in 1966 to address times of economic crisis  
          and child malnutrition.  Currently, the federal government  
          provides $2.57 and $2.17 respectively for every free or reduced  
          price meal served and the state pays an additional $0.2195 for  
          each meal served.  State law requires school districts in  
          California to provide a nutritious meal to every low-income  
          student.  Recently enacted state law provided an additional  
          $0.06 (included in the $0.2195) per free and reduced-priced meal  
          on the condition that local educational agencies agree to not  
          serve any food containing artificial trans fat or that have been  
          deep fried, par fried, or flash fried. 

          According to the California Department of Education (CDE), the  
          appropriation of $19.5 million in this bill will keep California  
          schools from running out of school meal reimbursement funds by  
          April 2009.  California served a record 770.6 million meals in  
          2007-08, 28 million more meals than the year before, which is a  
          4.5% increase.  Historically, the state has experienced a 1%  
          increase per year.  Furthermore, recent findings by CDE show an  
          alarming 9.7% rise in meals served in a comparison between the  
          first six months of actual meals served this year and the same  
          period in 2007-08. 
           
          Based on actual data collected through December 2008, CDE has  
          projected the cost of the school meal program for 2008-09 to be  
          $142.3 million.  The current appropriation is $125.7 million,  
          which means the total additional funding needed to fully fund  
          the school meal program based on current data is $16.6 million.   
          The appropriation for the school meal program in 2007-08 was  
          $123.3 million and was under funded by $7.4 million.  The  
          sponsor of the bill, the Superintendent of Public Instruction,  
          has indicated he will work with the author of the measure to  
          amend the bill throughout the legislative process to reflect the  
          most current data available.

          This past year, however, the economic downturn; increased  
          nutritional standards for schools; schools serving more  
          nutritious and fresh foods; and, higher costs for food, energy,  
          labor, and benefits have all contributed to the striking  
          increase in the number of low-income children participating in  
          the state's meal programs and the resultant funding shortfall.   
          Currently, 50.9 % of California's public K-12 student  
          population, or 3,118,053 students, are enrolled in the state's  








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          free and reduced-priced meal programs.  

          According to the author, the school meal programs were created  
          to battle hunger and malnutrition.  Even amongst headlines about  
          childhood obesity, these programs are necessary more than ever  
          to ensure our students do not go hungry, are ready to learn, and  
          are eating healthy foods instead of cheap junk foods.  We know  
          that many children receive their only daily meal from school.   
          And we know school meals work: study after study tells us that  
          adequate nutrition is essential to learning.  Children who eat a  
          well balanced diet have better test scores and academic  
          performance, and fewer problems of absenteeism, tardiness, and  
          poor discipline.  The greatest need for our children's  
          safety-net program comes when we can least afford it.  However,  
          its importance can't be overstated.  As we grapple with how to  
          close our enormous budget shortfall, the last thing we should do  
          is turn our backs on everything we know about nutrition, hunger,  
          and our children.

          While the school meal program is an important program for  
          California's neediest pupils, this bill does not make  
          substantive changes in policy and instead simply appropriates  
          additional funding to the program in order to fill a budget  
          shortfall.  The discussion of the merits of this appropriation  
          is best suited for the Budget Subcommittee on Education.   
          Committee staff recommends the issue be considered by the Budget  
          Subcommittee on Education for discussion.

           REGISTERED SUPPORT / OPPOSITION  :   
           
          Support 

           State Superintendent of Public Instruction, Jack O'Connell  
          (Sponsor)
          American Federation of State, County and Municipal Employees
          American Sports Institute
          California Association for Health, Physical Education,  
          Recreation and Dance (CAHPERD)
          California Association of School Business Officials (CASBO)
          California Child Development Administrators Association
          California Farm Bureau Federation
          California Food Policy Advocates
          California School Boards Association
          California Teamsters Public Affairs Council
          Cambridge Community Center








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          Children Now
          Congregation Emanu-El
          Contra Costa County Schools Insurance Group
          Hayward Unified School District, Board of Education
          Help Group
          Hunger Action Los Angeles
          Los Angeles County Office of Education
          Los Angeles Unified School District
          Parlier Unified School District
          Placer Union High School District
          Pomona Unified School District
          Prevention Institute
          Redding School District
          Redwood Empire Food Bank
          Revolution Foods
          San Diego Unified School District
          San Francisco Bar Pilots
          San Francisco Unified School District
          Second Harvest Food Bank Santa Cruz County
          Small School Districts' Association
          State Public Affairs Committee
          Valley High School

           Opposition 

           None on file.
           
          Analysis Prepared by  :  Chelsea Kelley / ED. / (916) 319-2087