I'm in the same situation. I'm keeping my fingers crossed for the .05 notebooks, but I've already bought 160 at .15. The first day of school, each of my students will recieve one notebook, two pencils (this year, a plain yellow one and one a little more expensive that says "welcome to our school" since these are 7th graders moving up to the high school from the elementary school), a pen (I buy misprinted click pens from forteachersonly.com...100 pens for 5.99 -- I also buy boxes of misprinted golf pencils from them to use as loaner pencils.), and a wedgecap eraser.
I tell my students "You may think I'm being generous, but really I'm being really selfish. I don't want to hear anyone try to use the excuse 'I can't do your assignment because my mom hasn't been to the store yet'." And I do it again in January when I get a brand new set of students.
Amazingly for them to be so low-income, they will buy stuff if it's available. I have to stock up on mechanical pencils (sell those for a quarter and am only getting enough money from them to pay back what I pulled out of pocket to buy them). I'll also buy extra notebooks to sell for a quarter (which, to me, means I'm just putting a few pennies back towards what I spent to give all the supplies away.) I've learned (the hard way) that if I give too much away for free, they will take advantage of it, but if I sell them the items at a reasonable price, they will take better care of their items. And they all get the supply gift at the beginning so no one can accuse me of not being fair.
It would be lovely if they would reduce the rate back down to .05 for the notebooks. I still need to buy some more (or would like to), and I have to buy crayons and markers, rulers, color pencils, glue, highlighters, and whatever else I can get my hands on, plus finish getting the ridiculous list of things for my DD's kindergarten. (Disposable cameras??)