Since its inception in 1955, the special milk program has been financed through advances from Commodity Credit Corporation funds. During this time, the authorization has been amended several times to extend the period, broaden the coverage, and increase the level of funds authorized. Public Law 87-67, enacted June 30, 1961, authorized $105 million for fiscal year 1962. The Agricultural Act of 1961 (Public Law 87-128) approved August 8, 1961, changed the financing of the program to a direct appropriation beginning July 1, 1962, and each of the 4 fiscal years thereafter. This appropriation will provide for continuation of the program in fiscal year 1963 at the same level of $105 million authorized for 1962. Since CCC funds will not be used to finance the program in the 1963 fiscal year, there will be a corresponding decrease in the budget for the Corporation. The program is designed to obtain increased consumption of fluid milk and extends to children in schools, child-care centers, summer camps and similar institutions devoted to the care and well-being of children. In 1961 under this program approximately 2.5 billion half pints of fluid milk were consumed by children-more than five times the quantity in 1955, the first year of operation of the program. In many areas of the country the potential for increased milk consumption by children is still great. Efforts are being undertaken to bring the benefits of this program to more needy schools and needy children in areas of greatest economic distress. Special assistance is being conducted this year on an experimental basis as a companion program to the assistance to especially needy schools under the school lunch program. An appropriation of $105 million—the amount authorized for 1962-is estimated to be required to meet the program needs in 1963. STATUS OF PROGRAM AUTHORITY The special milk program was initially authorized in 1955 to operate at an authorized level of $50 million in nonprofit schools of high school grade and under. Late in fiscal year 1956, legislation was enacted to expand the program to nonprofit summer camps and child-care institutions devoted to the care and training of underprivileged children on a special welfare or charitable basis. In July 1956, the legislation was amended to further expand the program to all nonprofit summer camps and child-care institutions devoted to the care and training of children. The program was extended through fiscal year 1962 with an authorization to use Commodity Credit Corporation funds up to $95 million for 1961, and $105 million for 1962. The Agricultural Act of 1961 (Public Law 87-128) approved August 8, 1961, changes the financing of the program to a direct appropriation beginning July 1, 1962. The permet persze if the pereran is to increase the consumption of fast DIN HCA si leg undertaken to bring the derets of this procan a mice beet schocks and needy children in evromawiy d.sized aress OPERATION 1. Assustine is prended in the form of reimbursement payments, to eligible schons and Pukan berations to help them to inaugurate a milk service or to expand the existing service through reducing prices to children and estab lishing new times of service. The marim rate of reimbursement in schools and institutions where is sold as a separately priced item is 3 cents per half pint except for schools which also serve type A lunches in the national school lunch program. The latter may receive up to 4 cents reimbursement per half pint but may not claim reimbursement for milk served as part of the type A lunch under the national school lunch program. (b) In those schools and child-care institutions that do not sell milk as a separate item, the reimbursement rate is 2 cents per half pint for all milk served to children. In order to qualify for participation in the program such schools, camps, and institutions must submit for approval the specifle methods and practices by which they will increase milk consumption under the program. (c) Special provisions have been inaugurated in fiscal 1962 to provide assistance to those schools which because of poor local economic conditions, have not been able to operate a food or milk service and are in need of special assistance to serve milk without charge to needy children. Such schools must submit an application for such special assistance indicating the specific circumstances which would make them eligible for the program and stating that they will serve such milk without charge to needy children in the school. The level of Federal reimbursement for milk served to needy children without charge may be up to the cost of milk to such schools, The level of Federal reimbursement for milk served to paying children in such schools is in accordance with the regular reimbursement as out lined in (a) above. 2. Procedures have been established to assure that maximum use of the reim bursement payments is made to reduce the price of milk to children as a means of encouraging increased consumption. The amount of reimbursement provided within the maximum established rates depends upon the cost of milk to the school or institution and the proposed selling price to children. 3. The program is administered within the States by the State agencies to the greatest extent possible. Funds for reimbursement payments are advanced generally in 9 monthly payments to State agencies in amounts consistent with anticipated program needs. AMS administers the program directly for private schools and other outlets where the State agency is prohibited by law from dis bursing funds to such participants. 4. No Federal funds are used by the State agencies for administering this program in the States. The total Federal costs, Le., the cash reimbursements and the Federal Government's administrative expenses, are limited each fisent year to the amounts authorized. The cost of Federal administration through fiscal year 1962 are charged to an allocation from the administrative expeTRO limitation of the Commodity Credit Corporation. From 1960 to 1961 the number of participating schools and institutions increased from 83,922 to 86,494. Of the latter figure there were 81,522 schools and 4,972 child-care institutions and summer camps. The number of one-half pints of milk reimbursed increased from nearly 2.4 billion in 1960 to almost 2.5 billion in 1961. During this same period expenditures rose from $80.5 million to $84.3 million. Number of half pints of milk reimbursed |