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a/ The 1987 and 1988 estimates are the same as the actual distributions in 1986.

This is done to prevent market disruption.

b/ revised

REIMBURSEMENT RATE FOR SPECIAL MILK PROGRAM

Mr. WHITTEN. In the explanatory notes you state that milk served to non-needy children is expected to be reimbursed at $.0925 for each half-pint. How is this reimbursement determined?

Mr. LEARD. Reimbursement for half-pints of milk served to nonneedy children is prescribed under Section 3 of the Child Nutrition Act of 1966. The Act specifies that the reimbursement rate shall be adjusted on an annual basis each school year to reflect changes in the Producer Price Index (PPI) for fresh processed milk published by the Bureau of Labor Statistics of the Department of Labor, rounded to the nearest quarter cent.

SPLIT SESSION KINDERGARTENS PARTICIPATING IN SPECIAL MILK

PROGRAM

Mr. WHITTEN. As a result of the change in legislation authorizing the special milk program to include some split session kindergartens, there will be an additional 142 million half-pints served during Fiscal Year 1988 in the special milk program. How many additional schools will participate in the special milk program?

Mr. LEARD. Our estimate is based on participation by kindergarten children prior to passage of the Omnibus Budget Reconciliation Act OBRA) of 1981. OBRA prohibited schools which operated any other USDA nutrition program from operating the Special Milk Program. Although we can estimate the number of students, we do not have sufficient information to estimate the number of additional schools that will participate in the program.

FNS ADMINISTERED SPECIAL MILK PROGRAM

Mr. WHITTEN. Please provide for the record a listing of those States in which the States are unwilling to operate the special milk program and the Food and Nutrition Service administers the program directly through its regional offices.

Mr. LEARD. We will supply that information for the record. Currently, negotiations are underway between FNS Regional Offices and State agencies to transfer some of the programs which FNS directly administers to State administration.

[The information follows:]

STATES IN WHICH FNS DIRECTLY ADMINISTERS THE SPECIAL MILK PROGRAM

Delaware. In private schools.

Virginia. In private schools and summer camps.

Georgia.-In Residential Child Care Institutions (RCCIs) and summer camps.
South Carolina.-In private schools, RCCIs and summer camps.

Tennessee.-In private schools, RCCIS, and summer camps.

North Dakota.-In summer camps.

Missouri.-In summer camps and private RCCIS.

Colorado.-In private schools.

Washington.-In summer camps and private schools.

FORMULA FOR ALLOCATION OF WIC FUNDS

Mr. WHITTEN. Last year there was considerable controversy over the FNS proposal to issue a new formula for the Special Supplemental Food Program for Women, Infants and Children (WIC).

Please provide us with a status of the interim and final regulations to be published.

Mr. LEARD. As you know, the conference report accompanying the Fiscal Year 1987 WIC appropriation (Public Laws 99-500 and 99-591) directed the Department of Agriculture to ". issue a new proposed regulation for the allocation of WIC funds to the State agencies, superceding the proposed regulation issued on September 9, 1986." A reproposal will be published shortly. In accordance with the aforementioned legislation and conference report, we plan to issue a final rule no later than July 1, 1987, and to implement the new formula by October 1, 1987.

Mr. WHITTEN. How many meetings have you had with the State WIC directors concerning the preparation of a new formula? Tell us what were the main comments from the State WIC directors? Mr. LEARD. During the week of October 27, 1986, the Executive Board of the National Association of WIC Directors (NAWD) met to formulate the NAWD's response to the Department's proposed rule. Departmental officials and staff met with the NAWD Executive Board during this period.

The NAWD followed up the oral presentation of its position with written recommendations for an appropriate funding formula. Comments were also received from numerous State and local WIC managers. The principal comments were received included:

1. The formula set forth in the September 9 proposed rule included no allowance for inflation.

2. The definition of targeting used in the proposed formula is inappropriate.

3. The range of nutritional risk criteria and reporting methods reflected in available priority data detracts from its value as a basis for funding.

4. The September 9 proposed rule provided no mechanism for controlled program growth.

ADDITIONAL WIC FUNDING FOR WIC PROGRAM EVALUATION

Mr. WHITTEN. What will the additional $100,000 requested for program evaluation projects be used for in Fiscal Year 1988?

Mr. LEARD. This appropriation will be used to fund a Congressional mandated study of WIC that requires the Secretary of Agriculture to report biennially on the income and nutritional risk characteristics of WIC participants.

WIC FOOD PACKAGE COST

Mr. WHITTEN. Please provide a table showing the average cost per month for the WIC food package for the past six years. Mr. LEARD. We will provide the information for the record. [The information follows:]

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