Entitlement

Entitlement vs. Planned Assistance Level (PAL)

The term "entitlement" is often used to describe entitlement funds, which can be a little confusing. The technical terms are State Entitlement and Planned Assistance Level (PAL). 

• State Entitlement: Funds administered to the state, by the USDA.
• PAL: Funds awarded to SFAs, by the State Agency

 

How Entitlement is Calculated

State Entitlement - Reimbursable meal counts are entered into CNPweb by the School Food Authorities (SFAs).  The State Agency reports total National School Lunch Program meal counts to USDA.  The USDA multiplies the reimbursable lunch claims by the per meal rate, established by Food Nutrition Services (FNS) each July. The total dollar amount is then administered to the State. 

PAL - The entitlement received by the State is then "fair-shared" out to SFAs, based on individual reimbursable lunch claims from the previous school year. 

 

Importance of Entitlement Spending

SFAs are encouraged to spend 100 to 105% of their entitlement on the Annual Survey. State Entitlement funds can decrease for the following school year if funds are not utilized. Spending 100% to 105% takes into account changes to commodity pricing, such as a decrease or increase in cost. The State, as a whole, aims to use 100% of entitlement funds.