P.O. BOX 2120



October 26, 2007



Division Superintendents



Billy K. Cannaday, Jr.

Superintendent of Public Instruction



School Breakfast Program - State Funding Incentive Payment for Increased Student Participation in 2006-2007


The General Assembly provided $1,060,971 in fiscal year 2008 as an incentive to improve the level of student participation in school breakfast programs. 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 2008, the actual participation from school year 2006-2007 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 2006-2007 was 24.5 percent greater than the base year participation and was nearly five percent greater than the 2005-2006 participation. The current fiscal year 2008 appropriation is not sufficient to fully fund the fiscal year 2008 payments to school divisions at $ 0.20 per meal. The Department of Education will reimburse school divisions at a pro-rated rate in October. In the event additional funds are not made available during the year, 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 31, 2007. This payment will appear on the EDI notice as State School Breakfast Incentive Funds revenue source code 240347.


Funds received by school divisions for 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.


Attachment B to this memorandum is a certification statement that must be returned to the Department of Education no later than December 3, 2007. Signing and submitting this statement completes the documentation required to participate in this program. Any school division that receives these state funds but 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 2008, will be required to either return the funds directly to the department or the funds will be recovered through a deduction from a future payment for Basic Aid. This certification statement should be submitted, no later than December 3, 2007, 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 school breakfast funding formula should be directed to the budget office staff at (804) 225-2025.