Local Government Associations Urge Governor Murphy to Stop the Healthcare Tax Increase

Trenton NJ (September 13, 2022) The New Jersey State League of Municipalities and New Jersey Association of Counties issued the following statement in anticipation of Wednesday’s State Health Benefits Commission vote to increase local government health care costs by approximately 20%.

Michael F. Cerra, Executive Director of the New Jersey State League of Municipalities stated:

“If, as the administration states, this massive healthcare rate increase is largely because of a utilization increase due to of the pandemic, then there is absolutely no reason to allow this to occur while, unlike municipalities and counties, the state has billions of dollars in reserve from the federal government to mitigate the negative effects of the pandemic. We urge Governor Murphy to intervene and reduce the amounts that local governments, public employees. and property taxpayers must pay by applying funds from the state allocation of American Rescue Plan to make New Jersey stronger and fairer.”

John G. Donnadio, Executive Director of the New Jersey Association of Counties said:

“County officials from across the State and on both sides of the aisle are urging the State Health Benefits Program (SHBP) Commission and Governor Phil Murphy to delay their decision to dramatically increase health benefit rates as their actions will have far reaching fiscal consequences for both local property taxpayers and public employees already struggling to make ends meet. NJAC is further urging the Administration to consider both immediate and long-term solutions that will reduce the unexpected, unprecedented, and unparalleled rate increases - one of which will include supporting legislation that will appoint county and municipal officials to the Commission as management does not currently have a voice on the Commission and it most definitely should.”

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