Summary - This notice announces the annual adjustments to the national average payment rates for meals and supplements served in child care centers, outside–school-hours care centers, at–risk after school care center and adult day care centers; the food service payment rates for meals and supplements served in day care homes; and the administrative reimbursement rates for sponsoring organizations of day care homes, to reflect changes in the Consumer Price Index. Further adjustments are made to these rates to reflect the higher costs of providing meals in the states of Alaska and Hawaii.

Notices are made on an annual basis each July, as required by the statues and regulations governing the Child and Adult Care Food Program (CACFP).

For Further Information contact: Keith Churchill, section Chief, Child and Adult Care and summer Programs section, Policy and Program development Branch, child Nutrition division, food and Nutrition Service, USDA, Alexandria, Virginia 22302, (703) 305-2590.

Definitions
The terms used in this notice shall have the meanings ascribed to them in the regulations governing the CACFP (7 CFR Part 226).

Background
Pursuant to sections 4, 11 and 17 of the Richard B. Russell National School Lunch Act (NSLA) (42 U.S.C. 1753, 1759a and 1766), section 4 of the Child Nutrition Act of 1966 (CAN) (42 U.S.C. 1773) and Sec. 226.4, 226.12 and 226.13 of the regulations governing the CACFP (7 CFR Part 226), notice is hereby given of the new payment rate for institutions participating in CACFP. These rates shall be in effect during the period July 1, 2007 through June 30, 2008.

As provided for under the NSLA and the CAN, all rates in the CACFP must be revised annually on July 1 to reflect changes in the Consumer Price Index (CPI) for the most recent 12-month period. In accordance with this mandate, the department last published the adjusted national average payment rates for centers, the food service payment rates for day care homes, and the administrative reimbursement rates for sponsors of day care homes on July 11, 2006, at 71 FR 39050 (for the period July 1, 2006-June30,2007.

• The changes in the national average payment rates for centers reflect a 32.27 percent increase during the 12-month period, May 2006 to May 2007, (from 198.7 in May 2006 to 205.2 in May 2007) in the food away from home series of the CPI for all Urban Consumers.
• The changes in the food increase during the 12-month period, May 2006 to May 2007, (from 191.9 in May 2006 to 200.32 in May 2007) in the food at home series of the CPI for all Urban Consumers.
• The changes in the administrative reimbursement rates for sponsoring organizations of day care homes reflect a 2.66 percent increase during the 12-month period, May 2006 to May 2007, (from 202.5 in May 2006 to 207.9 in May 2007) in the series for all items of the CPI for Urban Consumers, published by the Bureau of Labor Statistics of the Department of Labor.

The total amount of payments available to each State agency for distribution to institutions participating in the program is based on the contained in this notice.

This action is not a rule as defined by the Regulatory Flexibility Act (45 U.S.C. 601-612) and thus is exempt form the provisions of that Act. This notice has been determined to be exempt under Executive Order 12866.

This program is list in the Catalogue of Federal Domestic Assistance under N.10.558 and is subject to the provisions of Executive Order 12372, which requires intergovernmental consultation with State and local officials. (See 7 CFR Part 3015, Subpart V, and final rule-related notice published at 48 FR 29114, June 24, 1983.)

This notice has been determined to be not significant and was reviewed by the Office of Management and Budget in conformance with Executive Order 12866.

This notice imposes no new reporting or recordkeeping provisions that are subject to Office of Management and Budget review in accordance with the Paperwork Reduction Act of 1995 (44 U.S.C. 3501-3518).