SB 6-FUNDING FOR SCHOOL MEALS    8:32:17 AM CHAIR STEVENS called the meeting back to order. He announced that the final bill before the committee would be SB 6. SENATOR BILL WIELECHOWSKI, sponsor of SB 6, said the bill would provide a state match for schools participating in the federal free and reduced-price school breakfast and lunch program. The state match would be 35 cents for each breakfast and 15 cents for each lunch. Alaska is one of the few states in the country that does not have a state contribution which causes a gap of about $2.1 million for schools to fund out of their general funds. He noted that studies strongly show that kids that receive meals at school tend to be less obese, have better attendance records, and do better academically. The state spends over $1 billion for education every year. If students are hungry and cannot pay attention, that money is not being used as well as it could be. He noted that the bill has passed the Senate twice before. 8:34:03 AM KENDRA KLOSTER, Staff, Senator Bill Wielechowski, introduced SB 6. She explained the three goals of SB 6 as follows: to increase the number of meals served, increase the number of students receiving meals, and providing more nutritious meals. She shared statistics related to kids in need. One out of eight Alaska families struggles to put enough food on the table each year. She said 74,000 families seek food assistance and 43 percent of households visiting food pantries have children under the age of 18. She related that 51,000 Alaskan children are eligible for free or reduced lunch, however, six school districts do not offer either breakfast or lunch and 20 percent of the schools are not offering breakfast. Alaska is in the bottom 10 percent of the state for participation in food programs. She discussed statistics related to schools in need. It costs rural schools more to provide food programs. 8:36:02 AM MS. KLOSTER listed the reasons to have food programs in schools. They provide a solid investment in children's futures. They promote better health, and behavior and performance in school. They lower the dropout rates, prison populations, and obesity, and provides higher incomes. She cited a number of studies that show positive effects of the school meal program. 8:38:31 AM MS. KLOSTER addressed the state supplement to federal funding. She said the more the program increases, the more federal dollars are available to the state. She referred to letters of support for the program. She summarized that SB 6 is a solid investment in children's futures. CHAIR STEVENS asked to Ms. Kloster to clarify if SB 6 increases the number of children who would receive the breakfast/lunch program or if is simply replaces funding from one source. MS. KLOSTER replied that funds were being taken out of schools' operating budgets and SB 6 provides funding from a different source. It will not cover the entire recent shortfall, but will help. She reported that some of the schools plan to use the funding to increase the nutrition of the meals. One of the goals is to add more students and receive more federal funding. 8:40:41 AM SENATOR GARDNER asked about the cost of the state's supplemental funding mentioned on page 27. She wondered why the breakfast cost more than the lunch. MS. KLOSTER deferred to Ms. Schwartz to answer. ADRIANNE SCHWARTZ, Food Service Supervisor, Juneau School District, testified in support of SB 6. She explained that there is a very low number of students participating in the breakfast program, so more funding would increase the numbers. The reimbursement rate for the breakfast is a lot lower than that for the lunch program. The supplemental funding would also provide for a higher quality breakfast. 8:42:18 AM SENATOR GARDNER noted a concern about ensuring enough time for the breakfast so that children would not be late for class. She asked if the program currently provides food that the children can eat in the classroom. MS. SCHWARTZ said yes. Typically, the breakfast consists of something fast. Half of the schools participate in the National School Breakfast Program and half use a volunteer donation program. The latter is having a higher success because it is offered for no cost for everyone. She opined that the funding found in SB 6 is vital in order to offer students a full, complete breakfast. 8:44:00 AM SENATOR GARDNER asked if some districts require students to pay for a portion of the cost of breakfast. MS. SCHWARTZ replied that half of the schools participate in the National Program where students pay full price - $1.75 - for the breakfast. Some students are eligible for a reduced-price breakfast for $.30 and some qualify for the free breakfast. CHAIR STEVENS asked for a rough idea of how many receive free, reduced, or full-fare meals. MS. SCHWARTZ replied that Juneau is serving 1,300 meals per day for free, reduced, and full-fare meals. Half of the students are eligible for free or reduced-price meals. SENATOR HUGGINS asked how many Title I schools are in the Juneau School District. MS. SCHWARTZ said she did not know. SENATOR HUGGINS asked what the qualifying percentage for Title I is. MS. SCHWARTZ said it is in the 40 percent to 50 percent range. Two elementary schools have higher than 40 percent of their students eligible for free and reduced-price meals. One of the high schools has 60 percent eligible. District-wide, 30 percent of students are eligible. 8:46:57 AM SENATOR HUGGINS discussed food quality in schools as it relates to obesity. MS. SCHWARTZ responded that food requirements are changing and now require healthier fare. SENATOR HUGGINS asked if the federal government is a reliable partner in light of the national debt. SENATOR WIELECHOWSKI said he does not know if sequestration will impact SB 6. He noted the bill was originally passed by Congress in 1946 as a measure of national security because too many men were unfit for military service due to malnutrition. He said he would be surprised if there were cutbacks in this area. He added that it is a bi-partisan issue. 8:49:48 AM SENATOR DUNLEAVY asked a question about the cost of the program. SENATOR WIELECHOWSKI reiterated that it costs 35 cents for breakfast and 15 cents for lunch per student. That is the base amount and it is tied to the funding formula so rural Alaska schools would receive a greater amount to compensate for the much higher costs. He related that the Anchorage School District would use this funding to expand the meal program and to increase the quality of the food. Schools would have the option as to how to spend the money. SENATOR DUNLEAVY he asked how much the fiscal note is. 8:51:21 AM SENATOR WIELECHOWSKI replied that the fiscal note is for $2.3 million per year. SENATOR GARDNER asked if some schools were using other funding sources for the meals program, so that SB 6 would free up those funds to be used in other ways. SENATOR WIELECHOWSKI said that was correct and noted the fiscal gap of $7.8 million to $9 million. 8:52:26 AM DAVID NEES, representing himself, testified in opposition to SB 6. He questioned how reimbursements would take place. He pointed out in the Anchorage School District 22,000 of 50,000 children are eligible because USDA standards for the poverty level are used. He did not believe the fiscal note would cover those costs. He suggested that the allocation for the funding needs to come out of the money allotted to families to feed their children. 8:54:59 AM CHAIR STEVENS requested clarification of Mr. Nees' question. MR. NEES asked if the schools that receive the funding get reimbursed for the children served or for those who are eligible for the program. He also wondered how much waste there was. He questioned the use of USDA standards. SENATOR WIELECHOWSKI replied that the way the legislation is written is to supplement the cost of lunch and breakfast provided to each student who is eligible for a free or reduced- price lunch. The state produces the fiscal note. MS. KLOSTER explained that for every meal that is served, the cost is reimbursed. CHAIR STEVENS summarized that it is based on the number served. MS. KLOSTER agreed. CHAIR STEVENS inquired about the issue of wasted food. MS. KLOSTER deferred the question to Ms. Schwartz. CHAIR STEVENS requested comments about USDA funding. SENATOR GARDNER restated the question to ask why the program uses USDA levels for eligibility that are cut off at the $50,000 income level. MS. KLOSTER did not know. 8:58:49 AM CHAIR STEVENS held SB 6 in committee.