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Nebraska Public Schools Using Collection Agencies to Recover Overdue Payments for Meals

02/19/2024

According to an investigation by the School Nutrition Association, in 2023, Lincoln Public Schools referred 1,700 school lunch debts to Professional Choice Recovery, a collection agency.  Among the 20 largest districts in Nebraska, Kerney, Columbus and Scotts Bluff also use private collectors, according to a study conducted by Flatwater Free Press.  If parents are unable to pay the complete debt, judgement is obtained, substantial costs are added and the wages of parents are garnished.

 

Other school districts in Nebraska, including the largest in Omaha, do not refer debts to collection agencies.  Apart from the stress associated with dunning letters and phone calls, a judgement negatively impacts credit scores with far-reaching consequences.

 

As a result of the revelations, the Nebraska Legislature is considering a bill that would prevent school districts referring debts to commercial collection agencies. 

 

Kate Murphy, the Food Service Director for Kerney Public Schools, is apparently opposed to the proposed bill claiming that using collection agencies “Helps their meal programs stay afloat amid challenging economic circumstances and holds families responsible for the deficits they accrue”.  Murphy opined that “If the bill is passed, it will remove the incentive for parents to pay their kids’ lunch bill.”  Consistently the Lincoln Public Schools system has referred debts to collectors at a rate higher than any other school district in Nebraska.  More than a quarter of the 1,681 referrals were for debts under $50 with the public school system receiving 40 percent of the approximately 38 percent recovered from debtors. This 15 percent recovery is hardly sufficient to “keep the meal programs afloat”.

 

The clamor over attempts to recover overdue payments for school meals in Nebraska has played out concurrently with the December 2023 decision of Governor Pillen to refuse approximately $17 million in federal funding for summer supplementary food assistance.  This decision was reversed by the Governor during February after counseling by political advisors, strenuous opposition included a petition with 6,000 signatures and vigils outside his home.

 

EGG-NEWS is strongly in favor of free meals for K-12 students to provide necessary nutrition and to avoid “food shaming” of disadvantaged children. Extending school feeding programs should indirectly increase consumption of shell eggs and products.