Cerf, Newark teachers union spar over no-bid contract for politically connected firm
NEWARK — The city's school district is facing criticism for unilaterally approving a no-bid health contract for a politically connected health insurance firm, though officials contend its dire financial position left it with little choice.
Last week, Superintendent Christopher Cerf signed off on the deal that on Feb. 1 will transfer prescription drug benefits for all school system employees to Benecard, a Lawrenceville-based company owned by former U.S. Senate and gubernatorial nominee Doug Forrester.
The switch, which officials say is expected to save the state-controlled district $1.1 million annually, came after an analysis of three providers performed by its insurance broker, Conner Strong & Buckelew. The firm is run by George Norcross, the South Jersey Democratic power broker and ally to Gov. Chris Christie, and has also served as broker for Benecard.
The move met with a strong reaction from the Newark Teachers Union, who accused Cerf of violating both its contract and pledges made when he arrived in Newark in July in order to curry favor with Trenton power players.
"He went on national television, local media, promising transparency and honesty," said union president John Abeigon. "If awarding a no-bid contract to a politically supported entity is part of that, well, at least he's transparent in that."
The district fired back, saying that in addition to the considerable annual savings, the switch away from the NTU's longtime provider, the self-funded General Prescription Plan would not require the district to pay all claims, and shift some Cerf, Newark teachers union spar over no-bid contract for politically connected firm | NJ.com:
