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Council briefed on $8M–$10M health-benefits gap as budget talks begin
Summary
City staff told the council health-benefit and liability claims have created an $8M–$10M budget gap, prompting negotiations with unions and discussion of reserve use and potential plan changes.
City staff told the Passaic City Council the municipal budget faces a substantial shortfall driven largely by rising health-benefit costs and insurance claims.
Ricky, a city staff member, estimated the single largest driver is an increase in health-benefit costs: "we're looking at an $8,000,000 deficit in health benefits alone," he said during the budget briefing. He added the city also faces roughly $1,200,000 in general-liability claims, contributing to the near $9M–$10M pressure on the budget.
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