Funding model under the microscope as big review of P.E.I. School Food Program begins

The P.E.I. government has launched a full review of the school food program at a time when food costs have significantly increased and revenue generated from the pay-what-you-can model is lower than expected.

According to information provided by P.E.I. School Food Program, the number of meals that parents or guardians fully pay for is declining.

As of May 17, just 13 per cent of meals ordered for children under the program were fully paid for, and there was partial payment on another 18 per cent. That combines for a cost recovery of about 20 per cent.

"We want to make sure that the funding model we have is sustainable, fiscally responsible," said Shaun MacNeill, director of strategy, policy and seniors at the Department of Social Development and Seniors.

"[It will] hopefully lead to a contract that provides the level of support that the school food program requires."

This is the P.E.I. School Food Program's fourth year. The current government contract with the non-profit that operates the service provides up to about $7 million a year in support.

The other source of revenue for the program is payment for meals. It's a pay-what-can model, with a suggested payment of $5.75 per meal.

Almost 90 per cent of meals are ordered through the non-profit's web site, and when they are delivered to students at the school lunch break, there is no indication of how much was paid for any one meal. That's meant to eliminate stigma for children from low-income families who can't afford to pay for nutritious lunches.

MacNeill expressed some concern about the number of meals that are being fully paid for.

"The number I had heard was 17 per cent, which is still a low number. I think we'd want to look into that," he said.

But McNeill said it is too early to commit to any changes.

"We want to wait and see what the evidence says," he said. "Essentially it is about establishing a funding mechanism that takes the realities into account. We know food prices are going up, et cetera, so we want to make sure that the program is funded suitably and sustainably."

While the province is hoping to maximize cost recovery, it is also dealing with increasing food insecurity among children on the Island. A recent Statistics Canada report found that in 2022, about 41 per cent of P.E.I. children were living in homes struggling to provide adequate food.

While cost recovery is declining, the number of meals being served is growing rapidly. The program is projecting it will serve about 830,000 meals in this school year, an increase of 40 per cent over 2022-23.