130th MAINE LEGISLATURE
LD 1679 LR 1396(01)
An Act To Address Student Hunger through Expanding Access to Free School Meals
Preliminary Fiscal Impact Statement for Original Bill
Sponsor: Pres. Jackson of Aroostook
Committee: Education and Cultural Affairs
Fiscal Note Required: Yes
             
Preliminary Fiscal Impact Statement
FY 2021-22 FY 2022-23 Projections  FY 2023-24 Projections  FY 2024-25
Net Cost (Savings)
General Fund $0 $34,021,267 $34,021,267 $34,021,267
Appropriations/Allocations
General Fund $0 $34,021,267 $34,021,267 $34,021,267
Fiscal Detail and Notes
The School Finance and Operations program within the Department of Education will require ongoing General Fund appropriations totaling $34,021,267 per year beginning in fiscal year 2022-23 for the costs to the State to pay the difference between the federal reimbursement for a free breakfast or lunch and the full price of a breakfast or lunch for each student that is ineligible for a free or reduced-price lunch.  The Department of Education has received a waiver from the United States Department of Agriculture to provide free meals to students for the 2021-2022 school year.  Therefore, no General Fund appropriations are required for fiscal year 2021-22.
Based on information provided by the Department of Education, this estimate assumes that 39% of the approximately 2.7 million lunches served per month, or 1.06 million, are served to students who are paying full price for the meal and that the cost to the State to pay for that meal is $2.85, for a monthly cost of $3.02 million.  The total cost to the State for school lunches, assuming a 10 month school year, is $30.2 million.
The estimate also assumes that 29% of the approximately 8.4 million breakfasts served in a school year, or 2.4 million, are served to students who are paying full price for the meal and that the cost to the State to pay for that meal is $1.57 per meal for a total cost of $3.8 million per school year.