Katy ISD nutrition staff recommend raising student meal prices to preserve food-service fund

Katy ISD’s Nutrition and Food Service leadership recommended trustees approve modest increases to paid student meal prices at the June 15 work study to protect the program’s fund balance and comply with federal paid-lunch-equity (PLE) rules.

Dagmar Agudah, associate director of compliance, nutrition and food services, said temporary state and federal grants that had offset certain food and milk costs ended in 2024–25 and that the department now faces higher ongoing costs, including an approximate 21% increase in food prices reflected in the most recent request for proposals. Agudah told trustees the department’s beginning fund balance for 2025–26 was about $19.7 million and that, without action, the fund balance could be depleted in several years.

To improve financial balance and satisfy PLE requirements, Agudah recommended increasing breakfast from $1.25 to $1.50 and elementary/secondary lunches by $0.50 (elementary $2.75, secondary $3.25). She said federal reimbursements continue to be the primary revenue source for free/reduced meals but that paid‑meal revenue remains essential to offset costs for paid meals and program sustainability. District staff noted that 33 campuses use the Community Eligibility Provision (CEP), where all students receive free meals, and that impacts revenue calculations for other campuses.

Trustee questions and data requests

Trustees asked staff to provide a detailed report, including campus-level effects and the number of families near the free/reduced threshold who might be affected. Administrators said they would provide the requested market comparisons and the meal-pricing analysis ahead of the board meeting when trustees will be asked to vote.

Next steps

Administration will supply requested campus-level impact data and comparative meal-price information with surrounding districts; the board will consider a vote at its upcoming regular meeting.