Rinaldi Associates

Rinaldi Associates

Wednesday, October 22, 2008

Difficult Times Ahead

My friends, having worked in this business for 30+ years, I am for the first time, worried about funding and jobs.  I never (until now) thought that the feds would ever cut or reduce Child Nutrition Funding, always referring to our profession as "depression proof".  But now I don't know.  (Aside, the feds did reduce funding a few years ago and "tightened up" eligibility requirements but it may be nothing compared to what may lie ahead.)

With the economy falling, promises of tax increases, and hand out checks for those who don't pay their "own way", where is this money to come from?  Entitlement programs will have to be cut, and taxes increased.  By increasing taxes, businesses will "cut back", staff will be laid off, and prices of the goods and services that we use will increase.  Increasing taxes on the big companies like SYSCO, will mean that they will pass those increases on to us in the form of higher costs.  We can't do the same thing, so where will our $$ come from?  

If all this comes to be, then our food costs will increase at a time when funding is being reduced, and more families qualify for free and reduced price meals; unfortunately, I don't see our federal and state funding revenues increasing.  So who will benefit?  The food service management company, that's who.  As I have always said, the "playing field" is not level, they have buying power that we will never have, and they do not have the local business office closely watching their operation of the program.  Business offices simply do not have the time to audit the company operating their food service program.

I had hoped to retire (at least partially) this year but now, I think that my approach and position on some of these issues may be needed more than ever.  

Anyway, if you read this, the decisions that you make in 2 weeks in the election booth may determine the future of  your Child Nutrition Program for years to come.





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