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Report Examines School Contract Issues in New Jersey

Overcharging, favoritism, possible witholding of funds among issues examined.

Foodservice contract companies operating in New Jersey schools overcharged their districts by an estimated $320,000 for workers compensation and liability insurance, according to a study by the Clarion Group consulting firm. The study also looked into procurement rebate issues, RFP processes and other areas.

The report, Hard to Swallow: Do Private Food Service Contractors Shortchange New Jersey Schools? was commissioned by the Service Employees International Union (SEIU), which is attempting to organize cafeteria workers in a number of the state's districts. It can be downloaded at http://www.seiu32bj.org/shortchange.pdf

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