Byram reports sharply higher 2026 health‑benefit costs; council considers budget steps

Township Manager Joseph Sabatini told the Byram Township Council on Nov. 17 that the State Health Benefits Program (SHBP) approved a 36.2% rate increase for 2026, including roughly a 32% rise for medical premiums and more than a 62% jump for prescription‑drug costs.

Sabatini presented the Group Health Insurance line as increasing by $625,543 (42.73%). He said the figure reflects changes to the township census including three new employees (two in the police department and one in public works) and listed planned offsets — including $220,000 drawn from capital improvements, $40,000 for waivers and $23,000 covered by a UCC Trust — as well as additions such as $25,000 for group life/disability insurance, a $5,000 incentive program for select health plans, and a $2,500 HRA administration fee. A memo on the township website was cited as the source for the budget detail.

Sabatini also said an estimated “tax point” of $95,000 was used to model the effect on property taxes; based on that tax point he presented the Group Health Insurance line as producing an estimated 6.58% impact on property taxes. The manager emphasized the statutory framework under Public Law 2011, Chapter 78 that affects employee and retiree contributions to employer‑paid health coverage.

Councilman Roseff urged pausing purchases of new vehicles and equipment and recommended converting the zoning position to part time (potentially merging duties with the deputy manager) as internal savings measures. Councilman Proctor asked for more council engagement in the budget process and proposed forming a subcommittee to work with the manager. Sabatini proposed a full budget workshop including department heads and agreed to provide a numerical analysis on road improvements and to invite the Fire Chief and DPW superintendent to the next meeting.

Why it matters: the health‑benefits line is one of the largest recurring costs in the municipal budget; the council must weigh personnel and capital plans against a substantial premium increase and decide whether to use reserves, shift costs, or raise taxes. The manager’s memo is posted on the township website and the council signaled it will pursue further review before adopting the 2026 budget.

Next steps: the council discussed scheduling a workshop and forming a review process; no final budget decisions were made at the Nov. 17 meeting.