Present were Chairman Richard DeVaughn, Michael Peck, Patrice Douglas, Jay Dee Chase, Aneta Wilkinson and George Young.

Chairman DeVaughn called the meeting to order by presenting a Commission Commendation to Joan Weaver, a nurse with the Oklahoma Department of Human Services Aging Services Division.  Weaver arrived at a client’s home in Oklahoma City just as the client was suffering a stroke.  Weaver had spoken to the client just thirty minutes prior to her arrival and stated that she sounded fine.  However, when Weaver arrived to perform an in-home assessment, there was no answer at the door. Growing concerned, she knocked and phoned repeatedly, but to no avail. Weaver stated she had, ‘an uneasy feeling in her stomach that something was not right.” 

She tried once more to phone the emergency contact listed on the client’s assessment form. Fortunately, it was the number of a neighbor who answered and also had a key to the home. Once inside, the two found the client in distress, slumped over the bed. She had just had a stroke. The paramedics that were called to the scene said she would not have survived another thirty minutes in her condition. Thanks to the persistence of Joan Weaver, the client survived.

Oklahoma Department of Human Services Director Howard H. Hendrick began his comments to the Commission by listing some recent site visits that included Child Welfare case reviews, Oklahoma County Court Appointed Special Advocates Appreciation event, Interagency planning sessions for Addiction Services to coordinate services, Oklahoma County Juvenile shared planning meeting, OU College of Public Health – Public Health Care financing, multiple 90 day reviews with managers, Workforce Investment Act Board Meeting, planning for service needs for DMHSAS used by OKDHS,  KIDS data system’s open house, Children’s coordinated mental health care budget meeting, Tulsa County Child Protection Summit, Sand Springs Children’s home site visit, Kiowa County open house, Governor’s Cabinet meeting, Girl Scout’s Centennial Celebration event, EduCare Groundbreaking in Oklahoma City, Association of Council of Governments State conference in Tulsa, Governor’s Task Force on State Employee Compensation, Tulsa Food Bank site visit, USDA Under Secretary Regional visits to Tulsa Food Bank and to Oklahoma City Regional Food Bank, groundbreaking for new office building in Creek County, Governor’s Cabinet meeting, Smart Start Oklahoma Executive committee meeting, Governor’s Budget Committee Meeting with OSF, MOSAIC Planning session to review goals, DOC planning session with Director of the CSG division for correctional services, Annual Native American Celebration, Central Oklahoma Workforce Development Board planning session, Council of State Government’s Annual Meeting, Sarkey’s Foundation Annual Funder’s Conference, Statewide Adoption Celebration, planning for legislative session to review various proposed pieces of legislation, Oklahoma Institute for Child Advocacy Afterschool Network Panel, Office of Inspector General’s Centennial Celebration, Long Term Care Authority of Tulsa planning session, Enid Community Centennial Thanksgiving Celebration, Child Support review of various guideline and other proposed legislative issues for 2008, Aging Service Planning sessions for Oklahoma county, Oklahoma Capitol Improvements Authority Special Board Meeting, Annual Native American Celebration, meeting with parents – advocates and legislators to review plans for SORC, Multi-agency planning session for paying unfunded mandatory personnel costs, Quarterly meeting with the Facilities Management Unit, Presentation: “Changing the Stories Our Children tell 100 years from now” first in a Policy and Practice series sponsored by the Office of Planning Research and Statistics and attended the Logan County open house.

Director Hendrick next shared some good news with the Commission. There was a new record set for participation in the State Employees Charitable Campaign; the Oklahoma Centennial Centenarian Breakfast with Lance Robertson, Aging Services Director was a success with a near record for most Centenarians in one site; 2007 Annual Report was published; the Office of Faith Based and Community Relations co-sponsored a USDA Food and Nutrition Service summit in Tulsa and OKC in partnership with the regional food banks; approximately 700 families in central Oklahoma received Thanksgiving turkeys and other food items through the Office of Volunteerism in cooperation with local offices and wholesale food distributors; Life Church has begun an ambitious program to provide Christmas gifts to approximately 8,000 children in regular foster care; groundbreaking in Sapulpa for the Creek County office; The State Bond Oversight Committee approved the bonding package for the construction projects approved at the October Commission meeting; Great Statewide Adoption Celebration.

The Director next touched on the Policy and Practice Lecture Series before giving a brief report on Food Stamps.

Director Hendrick concluded his comments by outlining some major issues ahead: wrap-up the balance of the fund raising efforts on the Laura Dester Shelter in Tulsa; finalize the legislative objectives for the 2008 Legislative Session; develop some new strategies to address the continuing growth in out of wedlock births and many holiday events for the families we serve and for our staff.

Treba Dennis, operations manager, OKDHS Finance Division, presented the financial report for October.  Most divisions experienced a higher level of expenditures for October than in any month in this fiscal year. This is typical of the beginning months in a fiscal year.  Agency expenditures were 15 percent higher in October than in September and almost 10 percent higher than the average of the first three months. Consequently, the current year to date percentage variance is lower than in previous months. The total operational expenditures and obligations of $543.9 million is 5.4 percent less than the year to date budget. The corresponding receipts and receivables are $544.5 million year to date and are 5.5 percent less than budget. The resulting current year financial position is $3.7 million in unobligated funds. The prior year unobligated cash at the end of last month was $4.9 million. These two produce the published financial position of $8.6 million.

Aging Services Division continues to be over budget by 4.7 percent as of the end of October. All other divisions are within their respective budgets. Only two major programs are over budget as was the case in previous months. Group Homes and Shelters within the Children and Family Services Division are currently over budget by 7.8 percent through last month. The ADvantage Program in Aging Services has expended $2.5 million or 14.5 percent more than the year to date budget.

There were 109 new Adoptive Placements in October which was 41 more children adopted last month than in the previous month. Conversely, the number of children in Foster Care dropped by 28 in October from September.  Food Benefit cases increased in the month of October by 1,186 cases from those in the previous month.  TANF Child Only Cases dropped by 48 and TANF Cases with Adults were 31 less than the cases in September.

The Commission approved one administrative rule:
Part I.  Emergency rules subject to the Administrative Procedures Act.
A. CHAPTER 75.  CHILD WELFARE
Subchapter 1. General Provisions
Part 7. Interstate Compact on the Placement of Children
340:75-1-86 [AMENDED]
(Reference APA WF 07-24)

SUMMARY:   The proposed revisions to Subchapter 1 of Chapter 75 amend the rules to bring them into compliance with the Federal Safe and Timely Interstate Placement of Foster Children Act of 2006 and provide clarification of definitions and procedures for the interstate placement of children.

340:75-1-86 is amended to: (1) clarify the purpose of the Interstate Compact on the Placement of Children (ICPC); (2) re-position information to clarify definitions and types of placements, and exceptions to the ICPC; and (3) detail ICPC home study time frames.

EMERGENCY APPROVAL:  Emergency rulemaking approval is requested as OKDHS finds compelling public interest to bring OKDHS rules into compliance with Federal regulations to expedite the interstate placement home study process so children are placed timely with relatives ensuring they are not separated from them longer than necessary when out-of-state placements are required.

AGENCY GOALS:  The proposed rules achieve OKDHS goals by providing services that support and strengthen the family and protect its members.

COST:  The probable cost to OKDHS includes the cost of printing and distributing the rules, which is estimated to be less than $20. The revised rules will result in enhanced delivery of services to children in need of interstate placements and their families.

PROPOSED EFFECTIVE DATE:  Upon Governor's approval.

AUTHORITY: Commission for Human Services, Article XXV, Sections 2, 3, and 4 of the Oklahoma Constitution; and Federal Safe and Timely Interstate Placement of Foster Children Act of 2006.

Sharon Neuwald, coordinator, OKDHS Office of Legislative Relations and Policy, presented for the Commission’s consideration, the recommendation of the Rates and Standards Committee for several revised rates.

RECOMMENDATION TO THE COMMISSION FOR HUMAN SERVICES
INCREASE FIXED RATE FOR Child Care Subsidy Rate Increase
Dec. 4, 2007

ISSUE:
This proposal is to modify fixed and uniform child care subsidy rates. The child care subsidy rate should not be acquired through the competitive bidding process.  Clients directly benefit from the child care subsidy payments made to approximately 3,800 vendors throughout the state. The 2007 Market Rate Survey (MRS) was used to restructure the distribution of counties according to the Standard and Enhanced (Metro) rate and identify child care reimbursement rates in need of adjustment. The 70-cent increase to the federal minimum wage was considered in the rate analysis. OKDHS proposes to increase the rates paid for child care subsidy. The rate increases will ensure the availability of child care slots needed by families meeting the eligibility criteria and to support the provision of higher quality care.

RECOMMENDATION:
Adopt the revised rates as proposed on Attachment B & C. The proposed rate changes will establish a new enhanced county designation, 3 percent  global rate increase to partially fund the increase in the federal minimum wage and MRS equity adjustment for 2 Star Homes standard rate.

EFFECTIVE DATE:
Jan. 1, 2008

ELEGIBILITY REQUIREMENTS:
In order for a child to be eligible for Oklahoma Department of Human Services (OKDHS) subsidized child care, the household must meet the conditions of eligibility found in OAC 340:40-3-1(b).  In order for a child care provider to received subsidy payments from OKDHS, they must have a current Child Care Provider Contract.

RATE INCREASE METHODOLOGY:

Enhanced Rate: The Bureau for Social Research at Oklahoma State University conducted the Child Care MRS. Interviews were conducted in March, April and May 2007 with child care homes and child care centers across Oklahoma. Rates were compiled by type of facility, age of the child, county and Star status. Market rates are based on the amount providers receive for private pay filled slots.

Based on payment data, 87 percent of the children receiving subsidies are in two-star and three-star facilities; therefore, only two-star and three-star facilities were used in the average daily rate calculation.  For each county, an average daily rate was calculated for every category; therefore, each county could potentially have 18 categories. For counties without an established rate for a specific age, setting, or facility type, the lowest rate from the counties with the specific rate was used.

Based on the mean of the total average daily rate per county, the counties were ranked from highest to lowest. In order to qualify for the Enhanced rate a county was required to be in the upper 25 percent ranking and have a majority of the subsidy rates represented in that county. A total of 19 counties met the criteria for the Enhanced rate. Approximately 70 percent of children receiving subsidy are in the 19 counties recommended for the Enhanced rate.  The annualized net projected cost of the Enhanced County designation is $2,766,298.

Minimum Wage:  In response to the 70-cent federal minimum wage increase effective July 2007, a 3 percent global increase is recommended for all child care facilities. The increase in minimum wage represents a 14 percent increase to those earning minimum wage ($0.70/$5.15). Child care facilities average staff expenditure is approximately 70 percent of total cost. Applying the increase to the total expenditures would show a need for an increase of about 9 percent, assuming all staff was at minimum wage. Because all staff is not at minimum wage and the percentage of expenditures varies, the total impact is considered to be about 6 percent when all variables are considered. The 3 percent is only a partial funding of the entire issue. The annualized net projected cost of the 3 percent global increase is $3,088,900.

MRS Adjustment: MRS adjustment for Standard rate 2 Star Homes will establish rates that are comparable to the percentiles of Homes in Enhanced counties. This proposal brings Standard 2 Star Home rates in the 40 percent range to the 60 percent range to meet the enhanced levels. The annualized net projected cost of the MRS adjustment is $518,134.

BUDGETARY IMPACT:
The FY-08 fiscal impact of the rate increase is $3,186,666. When annualized in FY-09, the impact is $6,373,332. The Department attests that is has adequate funds to cover the projected cost of services.  

RECOMMENDATION TO THE COMMISSION FOR HUMAN SERVICES
INCREASE FIXED RATE FOR PARENT EDUCATION SERVICES
Dec. 4, 2007

ISSUE
The current fixed rate paid to contractors for Parent Education Services (PES) to provide intake assessments and group counseling was set in September, 1987. The current rate of reimbursement makes recruitment and retention of PES staff difficult, and jeopardizes the provision of important services to clients. This service should not be acquired through the competitive bidding process because it is a direct client service and has multiple providers.

RECOMMENDATION
It is recommended that intake assessments and group counseling rates be increased to be more in line with the actual cost to provide these services. This rate increase will help stabilize staff retention, make the field more attractive to qualified and experienced applicants, and allow the continuance of an invaluable center-based service.

EFFECTIVE DATE
Jan. 1, 2008

Background:
Children and Family Services Division (CFSD) has been providing PES for over 25 years. Currently, ten contractors provide these services across the state. These contractors are youth service agencies, private non-profit or private agencies.  Contractors report difficulty in providing quality services and attracting and retaining qualified staff due to the existing reimbursement rate.

Description of service:
Legal base and authority:
Preventive and pre-placement services to children and families are mandated by the Federal Statues of the Promoting Safe and Stable Families Act, Title IVB, Subparts 1 and II, and Section 7001-1.2 of Title 10 of the Oklahoma Statutes.

Parent Education Services: Group sessions consist of parents or the person(s) responsible for the care of the child(ren) who are at risk for, or have been affected by, child abuse or neglect. The objective of each group session is to confront child abuse and neglect issues using methods to control abusive and neglectful behaviors, share experiences and encourage participation. PES group sessions include topics such as child development, appropriate discipline methods, nutrition and family budgeting. Groups meet one to one and one-half hours per week, until completion of the program.

Intake Assessment Services: Include an assessment and diagnostic interview with the parent or caregiver who was referred for services. Afterward, a treatment plan to address identified needs is developed.

Educational Requirements of PES Staff:
Parent Education Program Director:  The Program Director will have a Ph.D. or master’s degree in social work or a related field, or a bachelor’s degree in social work or a related field with three (3) years experience.
Parent Education Group Leaders, In-home Therapeutic Service Providers, Parent-Child Observation Therapists, and Parent-Child Interaction Therapists:  Parent Education Group leaders, In-home Therapeutic Service providers, Parent-Child Observation therapists, and Parent-Child Interaction therapists, whether employees or volunteers, will have a bachelor’s degree in social work, child development, psychology or related field with two (2) years of related experience or be graduate students in social work, psychology or a related field practicum student.

Response from contractors:
Intake assessment services: Contractors reported costs varying between $70 and $78 to conduct a 1.5 hour intake. This rate includes material, printing, facility costs, training, scheduling, transportation, consultation, correspondence, supervisory time, etc.

Group counseling services:  Contractors reported costs varying between $37.50 to $47.00 per person per session. This rate includes material, printing, facility costs, training, scheduling, transportation, consultation, correspondence, supervisory time, etc.

New Rate Proposal:
Intake assessment services: Increase intake rate from $24 to $40 an hour, not to exceed an hour and half. Maximum reimbursement of this service would be $60.

Group counseling: Remove the existing maximum rate of $139 for groups of 6 or more.  Increase group counseling rate to $30 per person per session with a limit of 12 persons per group.

Budget Impact:
There will be an impact on the Oklahoma Department of Human Services budget as a result of an increase in the fixed rates for PES. If proposed rates are approved, the budget impact for these services will be an additional $275,000 for the 10 contractors providing these services. OKDHS has the funding in the budget for these increases.

RECOMMENDATION TO THE COMMISSION FOR HUMAN SERVICES
INCREASE FIXED RATE FOR SEXUAL ABUSE TREATMENT SERVICES
Dec. 4, 2007

ISSUE
The current fixed rate paid to contractors for Sexual Abuse Treatment Services (SATS) to provide intake assessments and group counseling was set in September, 1987. The current rate of reimbursement makes recruitment and retention of SATS staff difficult, and jeopardizes the provision of important services to clients. This service should not be acquired through the competitive bidding process because it is a direct client service and has multiple providers.

RECOMMENDATION
It is recommended that intake assessments and group counseling rates be increased to be more in line with the actual costs to deliver these services. This rate increase will help stabilize staff retention, make the field more attractive to qualified and experienced applicants, and allow the continuance of an invaluable center-based service.

EFFECTIVE DATE
Jan. 1, 2008

BACKGROUND
Children and Family Services Division (CFSD) has been providing SATS for more than 20 years. Currently, 3 contractors provide these services in Cleveland, Oklahoma and Tulsa County. These contractors are private non-profit or private agencies.  Contractors report difficulty in providing quality services and attracting and retaining qualified staff due to the existing reimbursement rate.

Description of service:
Legal base and authority:
Preventive and pre-placement services to children and families are mandated by the Federal Statues of the Promoting Safe and Stable Families Act, Title IVB, Subparts 1 and II, and Section 7001-1.2 of Title 10 of the Oklahoma Statutes.

Sexual Abuse Treatment Services Include:

• Intake services;
• Services to non-offending parents/caregivers;
• Services to siblings of child sexual abuse victims;
• Individual and Family Services; and
• Group counseling.

Families targeted for SATS include:

• Children who have experienced or are at risk for sexual abuse;
• Families in which at least one child has experienced sexual abuse;
• Children and/or families who are involved with CW due to sexual abuse within the family;
• Adults and/or adolescents who have been identified as having sexually abused a child; and/or
• Non-offending parents/person responsible for the child.

Intake services: Include an assessment and diagnostic interview with the parent/caregiver or child who was referred for services. This includes a full psycho-social assessment, (includes family history, trauma/abuse/neglect history, mental health treatment history, mental status exam, and violence/suicide risk assessment). Recommendations for treatment are based on the assessment.

Group counseling: The primary objective of each group is to instill and reinforce self-protection and prevention skills.

Educational requirements of SATS staff:  Personnel participating in delivery of services identified in this contract shall be qualified to render those services as documented by a minimum of a master’s degree in social work, psychology or related field from an accredited educational institution.  Such personnel shall be licensed to practice their respective professions in accordance with and as required by laws of Oklahoma.  The lead therapists and supervisor(s) shall have documented training and experience in treatment for the specific population being served, as well as training and experience in child/adolescent and family mental health services.

Response from contractors:
Intake assessment services: Contractors reported costs varying from $95.09 to $125.70 to conduct an assessment.
Example of cost:                            
Salary:  $64.61
Fringe:      8.80
Materials   1.91
Space       5.65 
Other        3.83
Indirect    10.29
Total:      $95.09

Group counseling rates:  Contractors reported costs varied from $33 to 62.50 an hour per person per session. This rate includes preparation, charting, reports to OKDHS, etc.

NEW RATE PROPOSAL
Intake assessment services: Increase intake rate from a flat rate of $24 to $60 an hour, not to exceed an hour and half. Maximum reimbursement for this service would be $90.

Group counseling:  Increase group counseling rate to $30 per person with a group limit of 9 persons per group. Current reimbursement rates for this service is $24 per person for 5 or less participants with a maximum of $139 for groups of 6 or more participants. Recommend removing the existing maximum rate of $139 for groups of 6 or more.

BUDGET IMPACT
There will be an impact on the Oklahoma Department of Human Services budget as a result of an increase in the fixed rates for SATS.  If rates are approved, the budget impact for these proposed rates will be an additional $45,700 for the three contractors who provide these services. DHS has the funding in the budget for these increases.

Intensive Treatment Services (ITS)
Program Description

ITS:  Intensive Treatment Services
ITS is an eight bed program that provides short-term residential crisis stabilization services to emotionally disturbed and behaviorally disordered custody children 24 hours a day, 7 days a week. The services are designed to prevent the admission of custody children to acute or residential psychiatric facilities, to transition custody children being discharged from acute or residential psychiatric facilities to community based placements, and to enable custody children to remain in community based placements. Twenty-four hour awake supervision is provided with a minimum staffing ratio of 1 staff per 2 residents. ITS has the capacity to admit residents 24 hours a day, 7 days a week.

ITS provides individual therapy a minimum of 5 or more hours per week and structured group therapy a minimum of 10 hours per week for each resident.  ITS designated therapy staff provides the individual and group treatment.  Residents admitted to ITS for less than one week receive prorated services.

Staffing Guidelines
Twenty-four (24) hour awake coverage will be provided.  All staff must meet at minimum OKDHS licensing standards for Residential Child Care Facilities in addition to criteria set forth in this contract and in the Oklahoma Health Care Authority rules for Residential Behavior Management Services in Group Settings (OAC 317:30-5-1043 through 317:30-5-1047).  If the Contractor's actual staffing pattern differs from the following guidelines, a written plan must be submitted to the OKDHS, which defines the proposed staffing pattern of the Contractor and clearly illustrates how each of the staffing guidelines functions will be provided. 

The proposed staffing pattern plan must be approved by the OKDHS prior to Contractor implementation. Contractor shall fill any vacancies in any required staffing positions within 30 days of the position being vacant; Contractor shall submit written monthly reports on the progress of filling vacant positions to the CFSD Programs Manager for Community Based Residential Care.

Contractor’s mental health professional staff and behavioral health rehabilitation specialist staff shall participate in developing treatment plans, and participate in scheduled reviews for each resident they supervise.  In addition, they will provide individual and group interactions with residents, including basic living and social skills redevelopment, behavior redirection, participate with the residents in recreational opportunities, provide daily log narratives as to each resident’s behavior, participate in the weekly staffing of each resident and have access to consultation with both the Administrator and the Consultant.

1. One (1) full-time Administrator, preferably MSW or Ph. D. Psychologist, with at least two (2) years experience in direct service provision to emotionally disturbed and behaviorally disordered youth and demonstrable administrative skills. This position shall direct the treatment plans for each resident, supervise the therapy staff and administer the program.  This person will be on twenty-four (24) hour call.
2. One (1) Consultant (Psychiatrist or doctoral-level licensed mental health professional) available to the Administrator and all staff 24 hours a day, 7 days a week; a minimum of 2 hours per week shall be on site.  Consultation notes shall be made a part of each resident’s case record.
3. Contractor’s staff that provide the required individual, group and family therapies shall meet the requirements as a licensed mental health professional licensed in psychology, social work with clinical specialty, professional counselor, or marriage and family therapist.
4. Contractor’s staff who provide the required alcohol and other drug counseling, redevelopment of social skills and basic living skills, and behavior redirection shall meet the requirements for behavioral health rehabilitation specialist:  a bachelor’s or master’s degree in a mental health related field, including, but not limited to, psychology, social work, occupational therapy, family studies; a current license as a registered nurse in Oklahoma; certification as an alcohol and drug counselor; or current certification as a behavioral health case manager from Oklahoma Department of Mental Health and Substance Abuse Services (ODMHSAS).
5. A minimum staffing ratio of 1:2 shall be maintained on all awake shifts with a 1:4 staffing ratio to be maintained on the sleeping shift.  When necessary to assure the safety of residents and staff, the staffing ratio shall be 1:1 for the resident at risk of harming self or others and 1:2 for the remaining residents.
6. One (1) Nutritionist (8 hours per month) who shall be responsible for meal planning and assuring compliance with licensing and Health Department standards.

RECOMMENDATION TO THE COMMISSION FOR HUMAN SERVICES TO
ESTABLISH FIXED RATES FOR THE SCHOOL NUTRITION PROGRAMS
Dec. 4, 2007

ISSUE
Pursuant to Sections 11 and 17A of the Richard B. Russell National School Lunch Act (42 U.S.C. Sections 1759a and 1766a) and Sections 3 and 4 of the Child Nutrition Act of 1966 (42 U.S.C. Sections 1772 and 1773), the Department of Agriculture annually announces the adjustments to the national average payment factors and maximum federal reimbursement rates for lunches and afterschool snacks served to children participating in the National School Lunch Program, breakfasts served to children participating in the School Breakfast Program and milk served to children by schools or institutions participating in the Special Milk Program for Children.

Currently, the program receives reimbursements from the federal government to provide reimbursements to school food authorities providing lunches, afterschool snacks, breakfasts, and milk.  The current reimbursement rate provided to the program is the annual adjustment to the "national average payments," set by the Department of Agriculture. 

Adjustments for the School Lunch, the After school Snack and the School Breakfast programs are based on changes in the "Food Away from Home" series of the Consumer Price Index for All Urban Consumers published by the Bureau of Labor Statistics of the Department of Labor. Adjustments to the Special Milk Program are based on changes in the "Producer Price Index for Fluid Milk Products" published by the same Department. 

These programs are funded 100 perfent with federal funds which a state can provide to a school food authority for serving lunches, breakfast, afterschool snacks and milk.

The Department of Human Services is requesting the establishment of fixed rates to increase the speed of service implementation to school food authorities.  School nutrition program services do not need to be acquired through the competitive bidding process because it is a service that directly benefits clients and multiple vendors provide the service. Establishing a fixed rate will increase the efficiency of service to school food authorities for providing meals to children participating in a school food service program without disruptions. 

The rates are tied to federal methodology and payments as the United States Department of Agriculture annually sets the rates for the program and notifies states of the new amounts. Currently our program provides funding to 72 school food authorities.  In the prior year, our program provided funding to 57 school food authorities for 1,348,364 meals served, costing $1,303,477.44.

Meals claimed for reimbursement Program Year 2007

Recommendation:
The Oklahoma Department of Human Services recommends the establishment of fixed rates under the Richard B. Russell National School Lunch Act and the Child Nutrition Act tied to national average payment and update factors used by the U.S. Department of Agriculture. (See Attachment A on details of the programs) 

Effective Date:
Jan. 1, 2008

Budget Impact
There is no budget impact on OKDHS. This is 100 percent federal money that the agency pays to school food authorities. OKDHS is reimbursed by the federal grant award.

Attachment A
Information on School Nutrition Programs

Payment Factors
The payments and rates for all programs are revised on an annual basis.  Adjustments in the reimbursement rates for the National School Lunch, the after school Snack, and the School Breakfast Programs are established each July 1, based on changes in the Food Away From Home series of the Consumer Price Index for All Urban Consumers, published by the Bureau of Labor Statistics of the Department of Labor.  The Special Milk Program is adjusted annually to reflect changes in the Producer Price Index for Fluid Milk Products, published by the Bureau of Labor Statistics of the Department of Labor.

The School Nutrition Program provides reimbursement to school food authorities participating in the Special Milk Program for Children, the National School Lunch, the after school Snack and School Breakfast Programs. Reimbursements are based on the number of meals served to income eligible and categorically eligible students.

Eligibility
Income eligibility guidelines for free and reduced price meals for the National School Lunch Program and the School Breakfast Program, and the guidelines for free milk in the Special Milk Program for Children are based on the Federal income poverty guidelines which vary by household size. The guidelines are used to determine eligibility for free and reduced price meals and free milk in accordance with applicable program rules.  The Department’s eligibility guidelines for free meals and milk are 130 percent of the poverty level with reduced price meals set at 185 percent of the poverty level.

Children who are members of Food Stamp households, the Temporary Assistance For Needy Families (TANF) program, or Food Distribution Program on Indian Reservations (FDPIR) benefits are automatically eligible for free meals. Foster children who are the legal responsibility of a welfare agency or court also may be eligible for benefits.  Eligibility for the foster child is based on the child's income.

Program Description
National School Lunch Program - Section 4 of the Richard B. Russell National School Lunch Act (42 U.S.C. 1753) provides the baseline payment for food assistance payments to states to assist schools in purchasing food. The Richard B. Russell National School Lunch Act provides two different payment levels (Section 4 of the Act) for lunches served under the National School Lunch Program. The lower payment level applies to lunches served by school food authorities in which less than 60 percent of the lunches served in the school lunch program during the second preceding school year were served free or at a reduced price. The higher payment level applies to lunches served by school food authorities in which 60 percent or more of the lunches served during the second preceding school year were served free or at a reduced price. Reimbursement in the second category is 2 cents more per meal.

National School Lunch Program

Afterschool Snack Payments in Afterschool Care Programs— Section 17A of the Richard B. Russell National School Lunch Act (42 U.S.C. 1766a) establishes National Average Payments (described in the background section) for free, reduced price and paid afterschool snacks as part of the National School Lunch Program.  An afterschool care program site is “area eligible” if it is located at a school or in the attendance area of a school where at least 50 percent of the enrolled children are eligible for free or reduced price meals.

Afterschool Snack Program

School Breakfast Program -- School food authorities receive reimbursements reflective of the national average payment actors (described in the background section) for free, reduced price and paid breakfasts served under the School Breakfast Program (SBP) and additional payments for free and reduced price breakfasts served in schools determined to be in ‘‘severe need’’ because they serve a high percentage of needy children.

The requirements for schools to qualify to receive severe need rates of reimbursement under the SBP are described in 7 CFR 220.9(e). The first criterion is that the normal reimbursement rate established by the Secretary would not provide the school in question with sufficient funds to cover the costs of the breakfast program. The second eligibility criterion is that the school is participating in or desiring to initiate a breakfast program, and the third is that 40 percent or more of the lunches served to students at the school in the second preceding school year were served free or at a reduced price. Under 7 CFR 220.9(d), schools received the lesser of their documented costs for free and reduced price breakfasts or the product of the number of free and reduced price meals times the applicable severe need rate of reimbursement.

Schools may qualify for higher "severe need" reimbursements if a specified percentage (see paragraph above) of their lunches are served free or at a reduced price.

School Breakfast Program

Special Milk Program for Children  -- the rate of reimbursement for a half-pint of milk served to non-needy children in a school or institution that participates in the Special Milk Program for Children.

Special Milk Program

Mary Stalnaker, director, OKDHS Family Support Services Division, delivered a brief report before introducing Ryan Bates, Rebecca Buswell, Edwina LaCour and Jenny Milner with the Family Start Program.

Marq Youngblood, chief operating officer, OKDHS Human Services Centers, delivered a brief report to the Commission.

The next meeting of the Oklahoma Commission for Human Services is Jan. 22, 2008.