The increase for 1969 would provide for some growth in both cash and commodities for the regular program, and for expanding the special assistance program to reach more needy schools. The program is operated under an agreement entered into by the State educational agency and the Department of Agriculture. Funds are advanced under letters of credit to State agencies for use in reimbursing participating schools. Schools make application to the State agency and, if accepted, are reimbursed for a part of the food cost of each lunch served. In 1967, the States contributed $1,272 million to this program, most of which came from payments by children. This was far in excess of the statutory matching requirement of $3 for each Federal dollar of cash payment. This appropriation is also used to purchase food for distribution to the schools to help meet the nutritional requirements of the lunches. Transfers are made to this appropriation from the fund, Removal of Surplus Agricultural Commodities, for the purchase and distribution of agricultural commodities and other foods. Further, commodities acquired under price support and surplus removal programs are available to the schools. The volume of surplus commodities distributed to schools, however, depends upon market conditions. The program during the peak month in 1967 provided lunches to over 36.5% of the approximately 50.5 million schoolchildren in the country. The number of lunches served increased approximately 1.7% over 1966. Participation in the program in November 1966 reached 18.5 million children in 72,944 schools and an appreciable increase is expected in 1968 and 1969. During 1967 over $1,088 million worth of agricultural commodities and other foods were used in the program. About 18% of this amount represented commodities contributed under section 6 of the School Lunch Act and the Federal surplus removal and price support program. Over 82% of the food used in the program was purchased by the schools through local suppliers. 2. Pilot school breakfast program.-The Child Nutrition Act of 1966 authorized a school breakfast program for 2 years on a pilot basis to assist States through grants-inaid and other means to initiate, maintain, or expand nonprofit breakfast programs in schools. Funds are apportioned to States by a statutory formula. While the basic payments are limited to food assistance, in circumstances of severe need financial assistance may be authorized up to 80% of the operating costs. Applicant schools must provide justification of the need for additional assistance. The program is operated in schools drawing attendance from areas in which poor economic conditions exist and where a substantial portion of the children enrolled travel long distances. During fiscal year 1967, programs operated in 752 schools in 47 States, the District of Columbia, Guam, Puerto Rico, and American Samoa. More than 75% of the breakfasts were served free or at token charges to children. The present authorization will expire at the end of fiscal year 1968. Legislation is proposed to extend the program. 3. Nonfood assistance program.-The Child Nutrition Act of 1966 authorized a permanent program to assist the States through grants-in-aid and other means to supply schools in low-income areas with food service equipment, other than land or buildings. Applicant schools are required to justify their need for assistance on a project basis and to submit a detailed description of the equipment to be acquired and their proposals for its use in meeting the nutritional needs of children. In addition, State and local sources must bear 25% of the cost of equipment or facilities financed under this authority. In fiscal year 1967 over 490 schools in all States, the District of Columbia, Guam, and American Samoa, serving meals to some 200,000 children, received equipment assistance of over $711 thousand. In 71 of these schools, no food service had been available prior to receiving equipment funds. PROGRAM PARTICIPATION 18,040 18,456 19,600 20,200 3,093 3,147 3,336 3,503 Number of schools assisted... 1967 preliminary 1968 estimate 1969 estimate 4. State administrative expenses.-The Child Nutrition Act of 1966 provides for advances to each State educational agency for administrative expenses. These funds are to be used for supervising and giving technical assistance to the local school districts for the administration of additional activities undertaken by them to extend the school lunch special assistance, school breakfast, and nonfood assistance programs to reach more needy children. 5. Operating expenses.-Consist of overall administration of the several programs including policy formulation Federal Funds-Continued CONSUMER AND MARKETING SERVICE-Con. General and special funds-Continued SCHOOL LUNCH PROGRAM-Continued and administrative reviews; administrative and technical assistance to State agencies and participating schools; and administering the program directly in over 3,000 private schools, in 28 States and Guam, where the State educational agency is prohibited by law from disbursing funds. Object Classification (in thousands of dollars) 1967 actual 1968 est. 1969 est. 7 145 134 5 11 1,865 11.3 11.5 Positions other than permanent.... 1,873 12.0 Personnel benefits.... 75 27 25.1 Other services.. Includes capital outlay as follows: 1967, $70 thousand; 1968, $114 thousand; 1969, $114 thousand; excludes downward adjustment of $418 thousand in prior year costs. 2 Selected resources as of June 30 are as follows: Unpaid undelivered orders, 1966. $783 thousand; 1967, $1,069 thousand; 1968, $1,069 thousand; 1969, $1,069 thousand. This program aims at providing increased nutrition to households with limited resources and, thus, at making more effective use of our food abundance. Food coupons which may be used in retail stores for the purchase of commercial brand foods are issued to needy households that qualify to participate. The program is inaugurated at the request of State welfare agencies, and these agencies are responsible for certification and coupons issuance functions. The Department determines the allotment of coupons for each household unit, including the portion to be purchased, based on income, food needs, and other factors. The participant's normal food expenditure is maintained by the purchase requirement. The supplemental or bonus coupons, provided free of charge, permit the family to upgrade its diet. Coupons are issued by a non-Federal issuing office. Cash paid for the coupons by participants is deposited 210 periodically in a designated Federal depository. Food stores receive cash or credit for the coupons from any commercial bank, which must accept them at face value. The coupons then flow through regular banking channels to the Federal Reserve banks where they are redeemed. 8.0 $8, 179 For necessary expenses of the food stamp program pursuant to the Food Stamp Act of 1964, as amended, [$161,800,000, and in addition $23,200,000 appropriated under this head in Public Law 89-556, approved September 7, 1966, shall be merged with this appropriation] $225,000,000. (7 U.S.C. 2011-2025; 81 Stat. 228; Department of Agriculture and Related Agencies Appropriation Act, 1968.) Program and Financing (in thousands of dollars) The Food Stamp Act of 1964 was amended on September 27, 1967, to provide appropriation authority of $200 million for fiscal year 1968 and $225 million for fiscal year 1969. Legislation will be proposed to increase the 1969 limitation to $245 million. In 1968, $184.9 million will finance the program in areas in operation on July 1, 1967, and permit expansion to reach a total of about 2.7 million persons by June 30, 1968. The increase1 for 1969 would provide for financing, on a full-year basis, the program level expected by June 30, 1968, and for further expansion. Total participation by the end of fiscal year 1969 will depend upon the time at which new areas are brought into the program, the number of participants in each of these areas, and continuing efforts to bring eligible nonparticipants into the program in areas already in operation. It is estimated that total participation by the end of the year could reach 2,964 thousand. This would be an increase of 219 thousand above the total expected at the end of fiscal year 1968. The following table reflects coverage, participation, and costs for fiscal years 1962 (the first full year of operation of the pilot program) and 1967, and estimates for 1968 and 1969 (dollars in millions): 9,301 11.3 Positions other than permanent... _ _ 38 11.5 Other personnel compensation.... 13 131 9 1,070 22.0 Transportation of things.--- 90 266 402 $342.5 Value of bonus (free) coupons is sued... Federal costs: Program... $13.4 Administrative.------- $0.7 $219.0 $229.5 Selected resources as of June 30 are as follows: Unpaid undelivered orders, 1966, $2 thousand; 1967. $0.3 thousand; 1968, $0.3 thousand; 1969, $0.3 thousand. License fees are deposited in this special fund and are used to meet costs of administering the Perishable Agricultural Commodities and the Produce Agency Acts (7 U.S.C. 491-497, 499a-499s). The law provides that annual license fees may be set at a maximum of $50. The fee is presently $42. The acts are intended to assure equitable treatment to farmers and others in the marketing of fresh and frozen fruits and vegetables. Commission merchants, dealers, and brokers handling these products in interstate and foreign commerce are licensed. Complaints of violations are investigated and violations dealt with by (a) informal agreements between the two parties, (b) formal decisions 10, 671 involving payment of reparation awards, and (c) suspension or revocation of license and/or publication of the facts. 55 863 WORKLOAD FACTORS 25.2 Services of other agencies.. Number of disciplinary actions.. 26.0 Supplies and materials.. Number of misbranding actions.. 31.0 Equipment..... Number of license actions... 3,400 22,792 41.0 Grants, subsidies, and contributions... Object Classification (in thousands of dollars) REMOVAL OF SURPLUS AGRICULTURAL COMMODITIES (SECTION 32) No funds available under section 32 of the Act of August 24, 1935 (7 U.S.C. 612c) shall be used for any purpose other than commodity program expenses as authorized therein, and other related operating expenses, except for (1) transfers to the Department of the Interior as authorized by the Fish and Wildlife Act of August 8, 1956, (2) transfers otherwise provided in this Act, and (3) not more than [$2,924,000] $3,025,000 for formulation and administration of marketing agreements and orders pursuant to the Agricultural Marketing Agreement Act of 1937, as amended, and the Agricultural Act of 1961. (Department of Agriculture and Related Agencies Appropriation Act, 1968.) 60 Appropriation.. 61 Transferred to: 63 "Promote and develop fishery products and research pertaining to American fisheries,' Bureau of Commercial Fisheries, Department of the Interior (15 U.S.C. 713c, as amended by Act of Aug. 8, 1956)__. "School lunch program," Consumer and Marketing Service (80 Stat. 695 and 81 Stat. 326). "Special milk program, Consumer and Marketing Service (80 Stat. 695 and 81 Stat. 326). "Salaries and expenses," Foreign Agricultural Service (80 Stat. 695; 81 Stat. 327) " "Salaries and expenses," Agricultural Research Service (80 Stat. 689 and 81 Stat. 320). Appropriation (adjusted). Relation of obligations to expenditures: 10 Total obligations. 70 Receipts and other offsets (items 11-17). Obligations affecting expenditures... -157 -300,000 -300,000 300,000 -317 300,000 300,000 228,616 226,791 -6,779 -7.444 406,558 600,000 -7,000 71 179,573 72 Obligated balance, start of year. 11,078 74 Obligated balance, end of year. -45, 232 Under section 32 of the act of August 24, 1935, as amended (7 U.S.C. 612c), an amount equal to 30% of customs receipts collected during each calendar year (except for an amount equal to 30% of such receipts collected on fishery products transferred to the Department of Interior to encourage the distribution of fishery products), plus unused balances up to $300 million are available for expanding domestic and foreign market outlets for farm commodities. As provided in recent appropriation acts, transfers have been made from this fund primarily to the school lunch program for the purchase and distribution of agricultural commodities and the special milk program to cover the full or partial cost of milk served to schoolchildren. Section 32 funds are also authorized for the administration of marketing agreements and orders. The basic legislation provides that funds devoted to any one commodity or product thereof must not exceed 25% of funds available. It also provides that the funds must be devoted principally to perishable agricultural commodities other than those receiving price support under title II of the Agricultural Act of 1949, as amended. It has been determined that this provision can be legally satisfied by setting aside or reserving the principal portion of section 32 funds for the use of perishable nonbasic agricultural commodities. 1. Commodity program payments are of four types: (a) Direct purchases are donated to schools, summer camps, child-care centers, nonprofit institutions serving needy persons, persons certified by welfare as eligible for relief, and disaster victims; (b) Diversion payments, none of which were made in 1967, enable processors to purchase surplus commodities on the domestic market, divert them to byproducts and new uses, and sell them at prices comparable to competing products, thus creating new markets for surplus commodities; (c) Export payments enable exporters to purchase surplus commodities on the domestic market and sell them on the world market at competitive world prices; (d) Production payments, none of which were made in 1967, help to reestablish farmers' purchasing power. During the past 2 years, assistance under these programs was given to the following commodity groups (in millions of dollars). The use of section 32 program funds is contingent upon marketing conditions. The estimates for both 1968 and 1969 reflect the foreseeable needs for perishables and other activities regularly financed with section 32 funds. If troublesome surpluses not now foreseen should develop, steps will be taken to use additional available funds for their removal or diversion as conditions might warrant. Funds are being used to arrange for certification and distribution of food to low-income families located in counties where there are no recipient agencies that are financially able to distribute food. 2. Surplus removal operating expenses occur mainly in connection with purchasing and exporting surplus commodities, and in distributing Section 32 and Commodity Credit Corporation commodities to eligible outlets. Dis In cooperation with the food trade, press, and radio, greater consumption of abundant foods is encouraged through publication of a monthly plentiful foods list and conducting various food drives. In 1967 the monthly plentiful foods list contained an average of seven foods. Eleven national and 13 area, State, and local drives were conducted. 3. Marketing agreements and orders are put into effect upon request of producers or handlers after hearings and investigations, and approval of producers (and handlers in case of marketing agreements). They help to stabilize prices, and benefit producers and consumers by estabfishing and maintaining orderly marketing conditions. Administration at the local level is financed by assessment upon handlers. On June 30, 1967, there were 73 orders in effect for milk, 47 agreements and orders covering tree fruits, nuts, and vegetables, and one order for shade grown tobacco. The expenses of advisory committees established to advise the Secretary, public hearings, referenda to determine producer sentiment and other developmental work as authorized by the Agricultural Act of 1961 is also financed under this project. Object Classification (in thousands of dollars) 4. Miscellaneous services to other accounts. 11 Federal funds. 14 Non-Federal sources 2 -959 -963 -959 -14,401 -15,523 -15,876 -336 -384 -384 384 384 384 Object Classification (in thousands of dollars) 1 Includes capital outlay as follows: 1967, $0; 1968, $3 thousand; 1969, $3 thousand. 2 Reimbursements from non-Federal sources above include amounts from cooperating universities and State, county, local and private agricultural agencies (41 Stat. 270; 68 Stat. 1237); from States. municipalities, persons, or licensed tobacco inspectors for services rendered (7 U.S.C. 511e); from sale of photographic slides (7 U.S.C. 1387) and personal property (40 U.S.C. 481(c)); for overtime work and travel performed at meatpacking establishments; for overtime and holiday work performed at poultry processing plants and in connection with appeal inspections on grain (21 U.S.Č. 468; 7 U.S.C. 78); refund of terminal leave payments (5 U.S.C. 61b); from jury fees (5 U.S.C. 30p); and from importers in connection with reconditioning seed (7 U.S.C. 1582(a)). |