This report is intended to clarify issues surrounding the implementation of the School Breakfast Program, as mandated by the New York State Legislature in Chapter 573 of the Laws of 1976. It attempts to answer questions which have been raised at meetings at which the program has been discussed, or questions that have been submitted in writing. The specific concerns that are discussed in the report include: program funding, the previous experience of the program, how the program operates, and key issues surrounding the program. Key issues associated with the program include the following: program expenditures and revenues; reporting, accounting, and monitoring of the program; program operations; the treatment of exceptional schools where it is not feasible to operate a breakfast program; program costs; and program decentralization or centralization. Charts and tables are included. (Author/AM)