The School Board in Stoneham, Massachusetts decided to pay for
health insurance of school cafeteria workers by raising the price
of school lunches from $2.00 to $2.75. The result:
In an apparent backlash against a 75-cent price
increase on the cost of lunch, student participation in the program
dropped 22 percent in the 2005-06 school year, Connelly reported.
A $160,000 anticipated deficit can be covered with funds from
other accounts, Connelly said, but the board needs to go back to
the drawing board to address the problem for next year.
The committee had agreed to raise the cost of a school lunch
from $2 to $2.75 last year, in the hope that it would raise
$150,000 to offset employee health insurance costs. Instead, the
mass student defection from the program wiped out any benefit from
the increase.
You see, if you raise the price of something, people will demand
less of it. It would be a good lesson to teach the kids. Which is
probably why they won't.