Yesterday, we reported that A-5903, which makes various changes to the State Health Benefits Program (SHBP) plan offerings and governance, was before both the Assembly State and Local Government Committee and the Assembly Appropriations Committee. Earlier today, the Assembly State & Local Government Committee amended and released the bill. The Assembly Appropriations Committee meeting was cancelled.
The League was joined by the New Jersey Association of Counties and the New Jersey Conference of Mayors in testifying in opposition to the bill. Provisions of the bill are positive first steps to address the unsustainable increases in the SHBP. However, we oppose the changing of the contribution rates, eliminating employee contributions for the Gold plan, and requiring non-SHBP towns to negotiate a plan similar to Unity 2019.
We are reviewing the amendments that include additional changes to the contribution rates and will provide an update shortly.
We need legislation to fix this looming problem. While the League could not support the bill today, there have been productive communications with interested parties, and we are hopeful that a viable solution can be found. Otherwise, we will face the loss of employees, the inability to recruit the next generation of local government employees, and increasing costs for employees and taxpayers. We look forward to working with the Assembly, Senate, the Governor’s Office, and public unions going forward.
Contact: Lori Buckelew, Deputy Executive Director, lbuckelew@njlm.org, 609-695-3481, x112.