P.O. BOX 2120



December 9, 2005



Division Superintendents



Jo Lynne DeMary

Superintendent of Public Instruction



School Breakfast Program - State Funding Incentive for Increased Student Participation


The 2005 General Assembly provided approximately $1.2 million in fiscal year 2006 to establish the states first funding of a school breakfast program as an incentive to improve the level of student participation in the school breakfast program. 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 state payment is based on $0.20 per meal served above the baseline number of meals served per student for each division.


As with the state support for the school lunch program, the current fiscal years payment for the breakfast program will be based upon the prior school years participation data. For fiscal year 2006, the actual participation from school year 2004-2005 was compared to the base year to determine the level of payment to be made to each school division. The attached spreadsheet (Attachment A) demonstrates this calculation for each school division.


The state breakfast incentive funds will be paid via electronic data interchange (EDI) on December 16, 2005. 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.


The language from the appropriation act (Chapter 951, 2005 Acts of Assembly) is provided in Attachment B of this memorandum.


Attachment C to this memorandum is a certification statement that must be returned to the Department of Education no later than January 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 2006, will have these funds deducted from a future payment for basic aid. This certification statement should be submitted, no later than January 31, 2006, to:


Lynne Fellin

Acting Director of School Nutrition Programs

Department of Education

P.O. Box 2120

Richmond, VA 23218-2120



Research has linked eating breakfast to improved academic performance, an increase in attendance, and better overall diet quality in schoolchildren. In addition, increased participation allows school divisions to leverage additional federal dollars for local school nutrition programs.


Through the efforts of Governor Warner and the 2005 General Assembly, this is the first time state funding has been made available for the school breakfast program. School divisions should continue to employ strategies to increase breakfast participation in order to be eligible for continued state breakfast funding in future years for meals served that are above the baseline. Actual school year 2005-2006 participation will be reimbursed in fiscal year 2007 (contingent upon continued funding) and it is likely that the baseline number of meals per student will continue to use school year 2003-2004 as the base year to determine participation increases.


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 Daniel S. Timberlake, assistant superintendent for finance, or budget office staff at (804) 225-2025.