NYC comptroller audit raises red flags about school milk contrac - FOX 35 News Orlando

NYC comptroller audit raises red flags about school milk contract

Posted: Updated:
NEW YORK (MYFOXNY) -

New York City Comptroller Scott Stringer says for every extra penny charged for a small carton of public school milk, the Department of Education loses $1.5 million that could have been used to fund classroom supplies and school activities. That is why his office's audit of three milk companies possibly fixing prices on $134 million of milk contracts is so important.

A plant in Jamaica, Queens, is where all the milk for 850,000 New York City public school kids is processed. The milk gets trucked in then comes out from the same bins into different labeled cartons. The milk companies -- Elmhurst Dairy, Bartlett Dairy and the now bankrupt Beyer Farms -- won contracts to deliver milk to New York City public school kids from 2008 to 2013. But a comptroller's audit found that the three companies began as competitors for the school contracts but two months later became business partners.

Stringer's audit alleges Bartlet Dairy's percentage of milk delivered to NYC public schools kids went from the originally contracted 6 percent to almost 70 percent before even one milk carton was delivered. Stringer said the Department of Education ignored red flags that the milk contracts were tainted, possibly fixed, implying -- though not proving -- the possibility milk prices were set at higher rates.

We contacted the three milk companies and the Department of Education asking for comment. None returned our calls or e mails.

The Department of Education was quoted in the comptroller's audit saying it agreed it should be more careful but felt it had not made mistakes previously.

One reason the Department Of Education may not have been that concerned about milk prices is because the federal government pays for a large portion of the milk New York City public school kids drink.

Stringer said he is so concerned about the possibility of fixing school milk prices that his office has referred its audit to the U.S. Department of Justice's Antitrust Division.

  • Local NewsLocal NewsMore>>

  • G subway line shutting down for 5 weeks

    G subway line shutting down for 5 weeks

    Friday, July 25 2014 9:02 AM EDT2014-07-25 13:02:01 GMT
    Beginning Friday night, a portion of the G subway line that connects Brooklyn and Queens will be shut down for five weeks.
    Beginning Friday night, a portion of the G subway line that connects Brooklyn and Queens will be shut down for five weeks.
  • Outdoor basketball courts losing popularity

    Outdoor basketball courts losing popularity

    Friday, July 25 2014 8:35 AM EDT2014-07-25 12:35:16 GMT
    Believe it or not this, some say New York's outdoor basketball courts are a dying entity. Even Rucker Park in Harlem -- where Dr. J and countless others honed their skills -- used to be standing room only all times of the day. Now there's plenty of room to stand on most days.Basketball programs like one at Chelsea Piers are gaining popularity. That means the place to hoop it up for many appears to be indoors.
    Believe it or not this, some say New York's outdoor basketball courts are a dying entity. Even Rucker Park in Harlem -- where Dr. J and countless others honed their skills -- used to be standing room only all times of the day. Now there's plenty of room to stand on most days.Basketball programs like one at Chelsea Piers are gaining popularity. That means the place to hoop it up for many appears to be indoors.
  • Hot air balloon festival in New Jersey

    Hot air balloon festival in New Jersey

    Friday, July 25 2014 7:55 AM EDT2014-07-25 11:55:32 GMT

    The largest summertime hot air balloon and music festival in North America is taking place in New Jersey.  The 32nd annual QuickChek New Jersey Festival takes place from Friday, July 25th to Sunday, July 27th in Readington. The festival features more than 100 hot air balloons from around the world.

    The largest summertime hot air balloon and music festival in North America is taking place in New Jersey.  The 32nd annual QuickChek New Jersey Festival takes place from Friday, July 25th to Sunday, July 27th in Readington. The festival features more than 100 hot air balloons from around the world.

Powered by WorldNow

35 Skyline Drive
Lake Mary, FL 32746

Phone: (407) 644-3535
News Tips: (866) 55-FOX35

Didn't find what you were looking for?
All content © Copyright 2000 - 2014 Fox Television Stations, Inc. and Worldnow. All Rights Reserved.
Privacy Policy | Terms of Service | Ad Choices