Approve the Proposed Meal Price Increase (Business Division) Revised Attachment

With costs rising at a faster pace than revenues, the Student Nutrition Services (SNS) program is challenged with meeting daily operating costs, as well as generating sufficient revenue to fund equipment and renovation needs. Even though we have adopted a variety of measures to limit expenses and enhance revenues, we are faced with an anticipated budget shortfall for FY 2008. To remain self-sufficient in the future, the SNS staff is suggesting three options for meal price increases beginning August 2008 and continuing for the next five years. We anticipate that an increase in meal prices will partially generate enough revenue to help close the gap between expenditures and revenues. The attached report summarizes fiscal challenges within the SNS program and strategies to minimize the gap between expenses and revenues. By being self-sufficient, the SNS program does not consume operating or capital dollars intended for instruction.

N/A

Projected increase in revenue generated by the adoption of either Option 1 ($4 million), Option 2 ($4.9 million) or Option 3 ($5.5 million). This number will be realized if participation levels remain stable.

February 2009