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A plate of beef ravioli became a symbol of two of the biggest issues facing city schools: cutting costs and raising nutritional standards. Both were on the menu Thursday as the city's Panel for Educational Policy met for more than four hours in Middle Village, Queens to vote on 40 contracts covering everything from building repairs to teacher training.

As for ravioli, a supplier was offering three years' worth for $3.8 million. That's up 40 percent from the last order, and Department of Education officials blame tougher nutritional standards.

"More stringent requirements, tighter bids, more healthier product drives higher prices, and that is the case in this particular case," said DOE official David Ross.

Panel members were concerned that only one company put in a bid.

"The fact that there is only provider of ravioli is kind of absurd," said Panel for Educational Policy member Patrick Sullivan. "We are clearly doing something wrong, and my concern here is that we have to be aggressively taking cost out. Not looking for ways, or acting like we have abundant funds to be buying gourmet ravioli."

The budget for the Department of Education hangs in limbo, with legislators in Albany resisting Governor David Paterson's proposal to cut $686 million from education statewide, of which $223 million would come from city schools.

The city might also cut school budgets mid-year, making every bit of money count. But with obesity and diabetes rates skyrocketing among school children, DOE officials are under pressure to serve healthier food, said only one company makes ravioli up to its standards.

"It is not a fortunate result, we never think it is, when we have one bid," said Ross. "But there is one manufacturer who make the product that meets our specs right now."

The panel eventually approved the contract 9-3, but the audience seemed to favor saving money over lowering sodium.

"I just think that there are other ways to address the health of our children than to spend another million dollars, when that's going to mean another 10, 15 teachers cut next year," said Sullivan.

DOE officials said they can get out of the contract if another manufacturer starts making healthier beef ravioli at a lower price. Until then, pricey pasta will be served.