[{"_1":2,"_112":-5,"_113":-5},"loaderData",{"_3":4,"_26":27},"root",{"_5":6,"_17":10,"_18":19,"_20":21,"_22":10,"_23":-5,"_24":-5,"_25":10},"user",{"_7":8,"_9":10,"_11":10,"_12":-5,"_13":-5,"_14":15,"_16":-5},"roles",[],"isAuthenticated",false,"isPremium","planName","subscriptionStatus","featureFlags",{},"insightsBudget","isDevelopmentHost","userPreferences",{},"recaptchaSiteKey","6LcvOJcUAAAAAHsB-gPGfGktcRlKpH7OTIU_dMTD","isImpersonating","impersonation","affiliateStatus","isFreedomPortal","routes/v2/article/layout",{"_28":29,"_30":31},"notFound",true,"relatedArticles",[32,76,88,100],{"_33":34,"_35":36,"_37":38,"_39":40,"_41":42,"_43":44,"_45":46,"_47":48,"_49":50,"_51":52,"_53":54,"_55":56,"_57":58,"_59":60,"_61":62,"_63":64,"_65":66,"_67":68,"_69":70,"_71":72,"_73":74,"_75":74},"mediaId",6092535,"mediaKeyId","2852954-74b7503d394138bf491d8070ef84cc93","parentId",2852954,"title","Rising health‑benefit costs push state and local plans toward plan‑design debate; local government section faces acute pressure","audioSeconds",4381,"startMs",1437000,"endMs",5818000,"viewUrl","/Search/View?dp=1&key=2852954-74b7503d394138bf491d8070ef84cc93&start=1437&end=5818","thumbnailUrl","https://assets.pipeline.soar.com/2852954-74b7503d394138bf491d8070ef84cc93/thumbnail_1437000.jpg","articleUrl","/articles/6092535/New-Jersey/Rising-healthbenefit-costs-push-state-and-local-plans-toward-plandesign-debate-local-government-section-faces-acute-pressure","mediaUrl","https://secure.pipeline.soar.com/6092535-2c8d0dc2aefa9463b31edcac4786342f/orig.mp4?Expires=1771144851&Signature=If09HW-8WlkMc866tiM8~EFf6eXPj4LUS2SAT20UoEtDXcZqpwnSisYPTd1u1FJIWi7WWtpIADMqGSv53hKLc7XIoFUgthoB7DNElTdxveOX4k2qVApBtyKAPo5I0NLwNPtYR6ZzbzwoxtHRZ1fd9v788pwumNKpFcXsVXRefA~FuxlXuYU6mGXbkyS2ZJMvk1sppTuZkTxVfPKB5z5Sd1wbBZNpm3uyAfDFh9rfE3xpTbo1BdaoZOTA8Lpzjhw2HHvsRw~sPPMoEEKzIBgWaIGCy5~E8aqR88ehGMTbF~PUEzNck0IXeY3ZbJOfOK0nR~mVqCK~GwlQwSswWJorZg__&Key-Pair-Id=KUT5TJCACFTXG","author","New Jersey Legislature","date","2025-04-02T00:00:00Z","article","Treasury officials and plan administrators told the committee the State Health Benefits Plan and the School Employees Health Benefits Plan are facing sharp cost pressures that could cause double‑digit premium increases for 2026, driven by increasing drug costs and utilization.

The Treasurer said actuaries are projecting “increases in the SHBP local government section that will likely be well above 20% for plan year 2026,” and that the state has posted a study examining plan‑design drivers of higher costs. Officials attributed much of the gap to plan design decisions made over many years in law, collective bargaining and administration and said Treasury does not have unilateral authority to change covered services without the plan‑design process or legislative action.

Treasury staff and plan representatives described several levers being discussed: plan‑design committee resolutions (members are evenly split between labor and administration), targeted pilot programs (for example, centers of excellence for high‑cost conditions), requiring generic drug use when available, and potential legislative changes such as minimum participation periods for employers to stabilize risk pools.

Officials warned of a “death spiral” risk if healthier employers continue to exit the local government section, leaving a smaller, higher‑cost pool that drives higher premiums and further exits. The Division of Pensions and Benefits said earlier reforms (for example, Chapter 44 measures for school employees) produced measurable savings but that the local government section needs renewed attention.

Ending: Committee members and Treasury agreed the issue requires continued focus and that the Department of Education, Division of Pensions and Benefits and plan‑design committee conversations would continue through the summer as rate‑setting and actuarial recommendations are finalized.","mediaType","Video","parentTitle","Assembly Budget Committee (Budget Hearings Only) Committee Wednesday, April 2, 2025 11:00 AM","oneSentenceSummary","Treasury officials said state employee health benefit plans are experiencing double‑digit rate pressures and that the local government section of the State Health Benefits Plan (SHBP) may see well‑above‑20% increases for plan year 2026, prompting calls to address plan design and risk‑pool stability.","taxTitle","2025 Legislative Sessions, New Jersey","taxId",77696,"location","New Jersey","headline","","shortSummary",{"_33":77,"_35":36,"_37":38,"_39":78,"_41":79,"_43":80,"_45":81,"_47":82,"_49":83,"_51":84,"_53":85,"_55":56,"_57":58,"_59":86,"_61":62,"_63":64,"_65":87,"_67":68,"_69":70,"_71":72,"_73":74,"_75":74},6092541,"Treasury proposes multiple tax and fee changes — from mansion tax to streaming, sports and a 40¢ 988 fee",2691,1246000,3937000,"/Search/View?dp=1&key=2852954-74b7503d394138bf491d8070ef84cc93&start=1246&end=3937","https://assets.pipeline.soar.com/2852954-74b7503d394138bf491d8070ef84cc93/thumbnail_1246000.jpg","/articles/6092541/New-Jersey/Treasury-proposes-multiple-tax-and-fee-changes-from-mansion-tax-to-streaming-sports-and-a-40-988-fee","https://secure.pipeline.soar.com/6092541-49f8a939b0d8d98cd2f67913e960fa87/orig.mp4?Expires=1771144851&Signature=QTvMElQZ-4DIaJTB-cSXJ8C5IhIViydMA~tezZbIjBmo3uW0yRalI~tb7jXwBXuLbY1euymI5skh4k0SGpECaAl2035WRiahQbCykQeCtOfabmwUqguvDdM774wAuYmrYW7GHEIUO74zuxigQfnS5Cd8kYYjTn7VRwQchiI0lY09vdEeshY3iLhmH6iFRm6t6w7B1yTZpDDaaFSSP3sAGh5-FNqnB34hr0lR8B-3f8~ezaFQN8Xs~oYwA4ETQj79m6h8IC6QZKASnRfmONE5tzQICvG~~wvCmSJN2vGvEM897kJcCXXIJZWdgX7QpOVvgOT9BGa-d7K1Fm4QGd6vig__&Key-Pair-Id=KUT5TJCACFTXG","The Executive budget included a range of tax and fee proposals the administration says will raise roughly $1.2–$1.3 billion and help close a projected structural gap.

Treasury described the suite of measures as a mix of recurring revenue raisers and smaller one‑time or partial‑year items. Among the proposals the administration scored or described for the committee:

• An increase to the realty transfer (“mansion”) fee with higher tiers for sales above $1 million and $2 million (Treasury estimated roughly $317 million additional revenue, with roughly $198 million coming from sales above $2 million).

• Sales‑tax base expansions to include certain digital services and streaming, participatory sports admissions/fees (examples cited: bowling alleys, batting cages, greens fees, pickleball, axe throwing), and selected services. Treasury estimated participatory sports receipts at about $20 million in FY‑26.

• A proposed monthly 40¢ per‑line fee to support 988 crisis and suicide prevention services, projected to raise about $61 million annually into the general fund; Treasury said the revenue would help support the 988 appropriation and other mental‑health services but is collected to the general fund rather than a dedicated statutory trust.

• Higher internet gaming/sports betting rates, increases to alcohol taxes, raises in cigarette and vaping taxes, a new excise on drone sales, and an excise/assessment increase on high‑value property. Treasury also proposed a warehouse truck fee and an adjusted corporate transit fee (CTF) estimate.

Lawmakers asked about distributional effects and economic competitiveness. Several members objected that proposed increases — particularly the mansion tax and added sales‑tax items — could burden working‑class families seeking local recreation or first‑time homebuyers, and asked whether analyses exist about cross‑border shopping or behavioral responses. Treasury replied the package sought recurring revenue and that policy choices are for the legislature to amend during the negotiation process.

Ending: The administration emphasized these are proposals; revenue and distributional assumptions will be revisited in negotiations and after spring filing data are available.","The proposed FY‑26 budget includes a package of revenue changes estimated at roughly $1.2–1.3 billion, including increases to the realty transfer (mansion) fee, expanded sales‑tax base (digital/streaming and participatory sports), a monthly 40¢ line fee for 988, higher cannabis and gaming rates, and excises on cigarettes, drones and firearms.",{"_33":89,"_35":36,"_37":38,"_39":90,"_41":91,"_43":92,"_45":93,"_47":94,"_49":95,"_51":96,"_53":97,"_55":56,"_57":58,"_59":98,"_61":62,"_63":64,"_65":99,"_67":68,"_69":70,"_71":72,"_73":74,"_75":74},6092546,"Treasury warns potential federal Medicaid changes could expose New Jersey to up to $10B in risk",147,2065000,2212000,"/Search/View?dp=1&key=2852954-74b7503d394138bf491d8070ef84cc93&start=2065&end=2212","https://assets.pipeline.soar.com/2852954-74b7503d394138bf491d8070ef84cc93/thumbnail_2065000.jpg","/articles/6092546/New-Jersey/Treasury-warns-potential-federal-Medicaid-changes-could-expose-New-Jersey-to-up-to-10B-in-risk","https://secure.pipeline.soar.com/6092546-ea9ac54648bca709e484053063eeda08/orig.mp4?Expires=1771144851&Signature=kqgqXlbc4~rsLeujicfP3Xrt23-cgC5ymB2nHIklE5C7Qy9tAxvILiXZvuO6oKPW3gziFTlz~AbJPNbqhMbI~MHTjWkcQ2IVMmI9DOikv0lX6RBi2Vu~B1qfYvdqADY7UGORuHySS7rrlXxApcAzu~4-t2tlX3Ifn3bMoIdG4IZQqrj44fThqO07omNNAX81348rU8Y9dxu1KTal9Xe1IqbBJSUpLjvfLC~RN5vnshrclrRAYUT~c2O8z8b0K33H9dftISqk4ND78tfnH0sI4hGOqoFJCPXbfGctgFS2YtFwo4MEobllo01fPg9HK5clDTxPJXWhDXaED970n5yKAw__&Key-Pair-Id=KUT5TJCACFTXG","State Treasury officials told the Legislature's budget committee that the state faces substantial exposure if federal Medicaid matching rates or related funding streams are reduced.

The Treasurer said federal funds total roughly $28.7 billion estimated for FY‑26, with nearly $20 billion flowing through the Department of Human Services and related agencies. The administration described New Jersey Family Care (Medicaid) as an approximately $24 billion program, of which roughly $14 billion is current federal matching funds and $10 billion is state share.

Treasury officials laid out a range of possible effects from federal changes. Depending on how the federal match and other levers are recalculated, the state could face Medicaid funding impacts “to the tune of $2,200,000,000 to $5,200,000,000,” and when combined with other proposed restrictions on health funding they said the Medicaid component alone could amount to about $10 billion at risk.

The Treasurer cautioned lawmakers that those hits are not hypothetical timing items but could be implemented abruptly and on a reimbursement basis that leaves the state responsible for bills already paid. She said the state's $6.3 billion projected surplus would not cover the high‑end scenarios described by Treasury staff.

Committee members asked about immediate examples of federal changes; Treasury cited an initial $350 million notice affecting health and disease‑tracking funds and an $85 million notification affecting school capital projects. Officials also described the ports and trade sector as a revenue driver vulnerable to federal tariff changes and noted ripple effects to jobs and tax receipts.

Ending: Treasury advised the committee the administration will continue to track federal proposals closely, that more detail should be available in May after filings and relevant agency testimony, and that the fiscal exposure from federal decisions is the largest near‑term uncertainty in the FY‑26 outlook.","Treasury officials told the budget committee that proposed federal Medicaid changes and other federal funding shifts could reduce New Jersey's federal funding by as much as $10 billion, far exceeding the state's projected surplus and creating substantial fiscal risk.",{"_33":101,"_35":36,"_37":38,"_39":102,"_41":103,"_43":104,"_45":105,"_47":106,"_49":107,"_51":108,"_53":109,"_55":56,"_57":58,"_59":110,"_61":62,"_63":64,"_65":111,"_67":68,"_69":70,"_71":72,"_73":74,"_75":74},6092550,"Treasury outlines FY‑26 budget with record K‑12 aid, full pension payment and $6.3B surplus",12077,226000,12303000,"/Search/View?dp=1&key=2852954-74b7503d394138bf491d8070ef84cc93&start=226&end=12303","https://assets.pipeline.soar.com/2852954-74b7503d394138bf491d8070ef84cc93/thumbnail_226000.jpg","/articles/6092550/New-Jersey/Treasury-outlines-FY26-budget-with-record-K12-aid-full-pension-payment-and-63B-surplus","https://secure.pipeline.soar.com/6092550-112ae267a7e9875bbf2dba63531f7e85/orig.mp4?Expires=1771144851&Signature=ZkdwVdYxxE1U4IZWZFcDzf~1j6Kl1uW~FopfAqZ9OSl4g1QwdeBca2Zj8DYuHhtkTMw47L1b3IC1x7yQOI~kscJwDhq9SrDzhfjlfG-6YDpCSh5PJnYSsnbq8aiqHDjOBTUCr2XG8kXYJXNQ4XECKAmqVyG6vx8e~6t8Zxe8-dgsBW9RWg867XoyI21uaSNKkDUrx4YIzEepV4dylWuduRlRCBSkQs2ZL96lyk9Jl4kyiU~jAZjxyuAuPaZ1ALwa6NZRkdeX7HMMCSCQQmAsPOE~pbfMQ1WNOQNEjAnC-cGXnbalfe4RYFlfhnnD8fVkTQYBmUYsE50uGbTeBwfedw__&Key-Pair-Id=KUT5TJCACFTXG","Treasurer presented Governor Murphy’s proposed fiscal year 2026 budget, saying the plan keeps record support for public schools, fully funds pension obligations and proposes $4.3 billion in property tax relief while projecting a $6.3 billion surplus.

The Treasurer said the FY‑26 budget includes a proposed $12.1 billion for K‑12 education, a proposed $1.27 billion for preschool aid and a proposed actuarially determined pension payment of $7.2 billion. She told the committee the administration intends to cap large year‑to‑year drops in major school aid categories so “K to 12 state aid will not decrease by an amount greater than 3% of the prior year's state aid.”

The nut graf: the budget seeks to balance continued investments — notably in schools and pensions — with restraints on discretionary spending while warning of financial risk from possible federal reductions in programs such as Medicaid.

Treasury officials told committee members the FY‑26 executive appropriations total about $58.05 billion and that baseline state revenues are forecast at $56.8 billion, generating an estimated structural gap that the administration proposes to close in part with a mix of tax changes and roughly $1.9 billion of nonrecurring resources in the plan. The Treasurer said the proposed budget “incorporates nearly $2,000,000,000 in appropriation reductions” and that the administration sought to limit new discretionary spending as revenues and federal support become less certain.

The administration highlighted several priorities: a record K‑12 appropriation, continued steps toward universal pre‑K, a fifth consecutive full actuarial pension contribution and an expanded single property‑tax relief application (PAS‑1) intended to simplify access to multiple relief programs. The Treasurer noted the administration’s long‑term pension payments have totaled roughly $47 billion since 2018.

Committee members pressed officials on the budget's assumptions and the tradeoffs involved. Treasury said revenue forecasts include policy proposals scored into baseline estimates for FY‑26, and emphasized the numbers will be revisited in May after the spring filing season. The Treasurer also reminded the panel that the budget the governor signs in June will differ from the February proposal as the legislature and administration negotiate changes.

Ending: The Treasurer concluded by saying the administration will continue working with the legislature through the spring and that final numbers will be updated after the filing season and any federal actions affecting state receipts.","State Treasurer presented Governor Murphy's proposed FY‑26 budget, highlighting record K‑12 funding, universal pre‑K proposals, a full actuarial pension payment and a projected $6.3 billion surplus while warning the fiscal picture is uncertain because of potential federal cuts.","actionData","errors"]

Article not found

Rising health‑benefit costs push state and local plans toward plan‑design debate; local government section faces acute pressure

Treasury proposes multiple tax and fee changes — from mansion tax to streaming, sports and a 40¢ 988 fee

Treasury warns potential federal Medicaid changes could expose New Jersey to up to $10B in risk

Treasury outlines FY‑26 budget with record K‑12 aid, full pension payment and $6.3B surplus