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The following table reflects for 1962-65 the average Federal contribution per lunch from the direct appropriation:

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(2) An increase of $2 million to initiate a program of special cash assistance to certain schools to help them serve free or reduced-price lunches.

The School Lunch Act, as amended by Public Law 87-823, includes a new section (sec. 11) authorizing an appropriation of the necessary funds to assist schools, drawing attendance from areas in which poor economic conditions exist, in serving free or reduced-price lunches.

In 1963, during the peak month, the school lunch program reached about one third of the 45.2 million schoolchildren in this country. Over 2.6 billion lunches were served to these children. About 1 out of 10 of these lunches was served free or at reduced prices to over 1 million children who could not afford to pay the full price of the lunch. However, large numbers of children in large urban centers and in rural areas do not now have access to a lunch program. Also, many schools in economically depressed areas with a lunch program cannot finance all of the free or reduced price lunches which should be served.

This situation results from the fact that the amount of cash assistance that can be provided to these schools under the regular cash assistance together with the limited resources the community can provide, including a token charge of a few pennies from some of the children, is not sufficient to finance the cost of serving lunches to these children.

On the basis, of a 15-cent Federal reimbursement-the maximum allowed under present regulations-the $2 million requested for initiating special assistance would increase by about 10 percent of children that could receive free or reduced price lunches.

These funds would be distributed among the States in accordance with the formula contained in section 11 of the School Lunch Act, as amended, and would make a contribution to the attack on poverty.

(3) A decrease of $20,000 in section 6 commodity procurement to provide for increased pay costs. This includes $6,000 applicable to the transfer to the Office of the Inspector General.

(4) An increase of $14,000 to provide for the additional costs in fiscal year 1965 of the second step of the pay increase pursuant to Public Law 87-793. (An overall explanation of increases for pay costs is included in the preface to these explanatory notes in vol. 1.)

1947

1961

1962

1963

1964 (estimate)

TABLE I.—Source of funds including special milk, matching requirements and participation in the program, fiscal year 1947 (1st year) and

fiscal years 1961-64

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3. School enrollment (thousands).

4. Participation in program:

47,420

Number of free or reduced-price lunches served (millions).

Free or reduced-price lunches as percent of total lunches served.

5. Foods bought in local markets with Federal cash payments and State contributions.

6.

1 Represents year in which commodities were distributed; not necessarily year in which funds were obligated.

State matching requirements per Federal dollar are as follows: 1947-50 $1 to $1; 1951-55 $1.50 to $1; thereafter $3 to $1 except that for States with per capita income below the national average the ratio required is decreased by the percentage which the State per capita income is below the per capita income of the United States. Lowest matching

requirement for 1947-50 was $0.46 to $1; for 1951-55 $0.73 to $1.50; for 1956-60 $1.41 to $3; 1961-63 $1.54 to $3.

Beginning in 1959 excludes schools serving only type C lunches.

• Includes funds authorized to be transferred from sec. 32 for the purchase and distribution of agricultural commodities. Excludes comparative transfer to OIG-OMS.

1947

1961

1962

1963

1964 (estimate)

TABLE I.-Source of funds including special milk, matching requirements and participation in the program, fiscal year 1947 (1st year) and

fiscal years 1961-64

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Represents year in which commodities were distributed; not necessarily year in which funds were obligated.

2 State matching requirements per Federal dollar are as follows: 1947-50 $1 to $1; 1951-55
$1.50 to $1; thereafter $3 to $1 except that for States with per capita income below the
national average the ratio required is decreased by the percentage which the State per
capita income is below the per capita income of the United States. Lowest matching

requirement for 1947-50 was $0.46 to $1; for 1951-55 $0.73 to $1.50; for 1956-60 $1.41 to $3; 1961-63 $1.54 to $3.

3 Beginning in 1959 excludes schools serving only type C lunches.

4 Includes funds authorized to be transferred from sec. 32 for the purchase and distribution of agricultural commodities. Excludes comparative transfer to OIG-OMS.

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