New Jersey
NJ Treasury officials sound alarm about health benefits for local government employees
3-minute read
New Jersey Treasury Department officials are warning about rising costs and spiraling structural deficiencies in the State Health Benefits Program, which provides health care coverage used by hundreds of thousands of state and local public employees.
In a report released May 20, Treasury officials say the program is facing challenges because rising costs of health care coverage are driving some local governments to seek cheaper benefits alternatives. That exodus is creating what Treasury officials call a “systemic unraveling” of the SHBP.
There are 689 local government agencies using the State Health Benefits Program, and participants have seen premiums increase by nearly 60% since 2022, the report says. The plan covers more than 700,000 public employees statewide.
Premium increases are expected this year as well.
What does the report say?
The local government plan — the portion of the SHBP that covers local government employees — faces legitimate financial concerns right now, the report notes.
In October 2024, Gov. Phil Murphy signed legislation to allow funds to be temporarily transferred from the state plan to the local government plan to cover shortfalls. In five months, transfers of $258 million were approved. About $138 million has been repaid, and an outstanding balance of $120 million remains.
The plan faces what actuaries refer to as a “death spiral,” the report says.
“This dynamic arises when the financial sustainability of a health benefits program deteriorates in a self-reinforcing cycle, each worsening cycle compounding the next,” it says.
As healthier local governments leave the plan for cheaper options, those left behind with higher medical use see premiums go up. This leads to more local governments leaving the plan. In turn, having fewer participants leads to a smaller buffer to mitigate premium spikes, actuarial losses or cash flow needs, the report explains.
About 45% of the state’s 1,200 eligible local public entities are currently using health benefit programs outside the state’s plan.
This is “not merely facing a financial problem” but a “structural unraveling that, left unaddressed, will lead to collapse,” Treasury officials say in the report.
What comes next?
With the report, prepared at the direction of the administration of Gov. Phil Murphy, Treasury is urging the Legislature to intervene. That said, the report doesn’t make any specific recommendations as to what comes next but offers policy options because of the urgent nature of the problem.
Even the options provided have no real time frame of implementation but rather depend on the specific initiatives considered by the Legislature.
Those options include a “phased and orderly closing” of the local government health benefits plan to allow “local entities to transition into self-governed collectives.”
Alternative policy options for short-term stabilization could also be implemented, but they “will not fully resolve the structural deficiencies or halt the death spiral.”
They include a installing a minimum lock-in period of three to five years for agencies participating in the program, reforming the Plan Design Committee to include a delegated authority to the treasurer or director of the Division of Pensions and Benefits so that routine plan changes could be made, and rebuilding the claims stabilization reserve to the recommended two-month level.
“These short-term measures are independent of the more comprehensive solution of dissolution,” the report said. “The simultaneous introduction of all of the three short-term measures will have a cumulative positive effect, since governance modernization alone cannot succeed.”
Katie Sobko covers the New Jersey Statehouse. Email: sobko@northjersey.com
Governor Mikie Sherrill at BJ’s Wholesale Club in Ocean Township after collapse
New Jersey Governor Mikie Sherrill meets with first responders before a press conference at BJ’s Wholesale Club in Ocean Township.
Last week wasn’t a great one when it comes to weather at the Jersey Shore.
This one will be much better, at least if you like heat.
A heat wave will hit New Jersey this week with hot weather moving into the area on Tuesday. The warm temperatures will stick around for most of the week before we get a little relief by the end of the weekend.
The National Weather Service forecasts the heat wave to start July 14 with a sunny day with highs around 92 degrees. Wednesday is even hotter with temperatures expected to flirt with 100 degrees. Thursday stays hot with a high of 92 degrees forecasted, with Friday and Saturday also expected to see highs in the low 80s.
According to the NOAA, Wednesday the Jersey Shore area will be under an extreme heat watch.
Tuesday through Friday are expected to be sunny, with some clouds. Saturday is when showers roll in.
Sunday the heatwave is expected to break. Showers are also expected to stick around with a high of 84 degrees expected.
2-minute read
Paper Plane Coffee adding a new Maplewood NJ location
Paper Plane Coffee, the popular Montclair spot, will open a Maplewood location.
The Record, NorthJersey.com, the Daily Record and the New Jersey Herald want to keep you up to date on all the newest shops, restaurants and service providers moving into your towns. Below is a roundup of businesses that recently opened or are coming soon.
Are you opening a business in North Jersey? Get the word out to your neighbors as soon as possible. Send us your information and photos and we will try to add them to our next new-business roundup.
We’re also interested in reporting business closings. Have a tip? Contact Business Reporter Daniel Munoz at munozd@northjersey.com, or 201-270-9870, and Stephanie Noda at noda@northjersey.com, or 973-558-0950.
Story continues below photo gallery
Cre8sArt School, Westwood
Arts education classes for students of all ages and levels, including year-round classes, camps, workshops and portfolio development programs.
WHERE: 24 Booker St., Westwood
WHEN: Grand opening was June 14. Hours are 3 p.m. to 8 p.m. Monday through Friday and 10 a.m. to 4 p.m. Saturday.
FOR MORE INFORMATION: Call 888-371-9904 or visit https://cre8sart.com/
Point 5 Jersey, Morristown
Liquor store dedicated to non-alcoholic drinks, from mixers to specialty beverages.
WHERE: 48 Washington St., Morristown
WHEN: Grand opening was June 17.
FOR MORE INFORMATION: Call 862-286-0555, email point5jersey@gmail.com or visit www.point5jersey.com
Daniel Munoz covers business, consumer affairs, labor and the economy for NorthJersey.com and The Record.
Email: munozd@northjersey.com; Twitter:@danielmunoz100, Facebook and Instagram
Every Saturday night all summer, cowboys ride bucking broncs in a Salem County town called Pilesgrove. That rodeo has run weekly since the 1950s. Two hours north, Frenchtown builds its whole downtown around a contemporary arts center on the Delaware River. High Bridge sends walkers straight from Main Street onto an old iron-country rail trail. These eight towns each reward a single Saturday. You have driven past their exits for years.
Frenchtown
Fewer than 1,500 people live in Frenchtown, which sits on the Delaware River in the hills of Hunterdon County, in the western part of the state. The whole town fits into a few blocks around Bridge Street, where the restaurants, shops, and river views cluster alongside ArtYard, a contemporary arts center that runs both gallery shows and live performances. From the edge of town you can pick up the Delaware and Raritan Canal State Park Trail, more than 70 miles of flat, multi-use path along the old canal route with connections into other trail networks, so you can leave the car parked all day. Just outside the borough, Frenchtown Preserve adds miles of trails for hikers, cyclists, and anyone hoping to spot wildlife.
Tuckerton
Long Beach Island gets the crowds, but Tuckerton sits just a few miles across the bay and keeps a much lower profile. The town centers on the Tuckerton Seaport, a stretch of preserved historic buildings and boatworks that doubles as an event space, with local tours and a seasonal ferry running out of it. Main Street runs down to Lake Pohatcong, and beyond that you will find marinas, restaurants, and waterfront spots like South Green Street Park, a reliable place to fish or just watch the water. Tuckerton also makes an easy base for the protected coastline nearby, including the Edwin B. Forsythe National Wildlife Refuge.
High Bridge
The Columbia Trail starts just off Main Street in High Bridge and runs north into Morris County, which makes this small Hunterdon County town a natural jumping-off point for a long walk or ride. Main Street itself is a short run of coffee shops, restaurants, and local businesses, enough for a meal before or after the trail. The town wears its ironworking past openly, most visibly at the Solitude House, one of its oldest homes and a window into the era when iron drove the local economy. Lake Solitude sits nearby for anyone who wants the water view to go with the history.
Pitman
The Broadway Theatre of Pitman anchors this South Jersey town, a restored 1920s venue that books plays, concerts, and stand-up through the year. A few blocks away is Pitman Grove, which started as a Methodist summer camp meeting ground; its streets fan out from the Pitman Grove Auditorium, where the community and religious gatherings were once held, and the radial layout is still visible on a map today. The Uptown Pitman district around both sits lined with restaurants, galleries, and neighborhood shops, so a theater night easily turns into a full afternoon and evening.
Cranbury
Cranbury has held onto its old architecture better than most towns its size, and the result is a Main Street that reads like a preserved 19th-century streetscape. The Cranbury History Center, a small museum focused on how the village grew, makes a good first stop for the backstory. From there it is a short walk to Brainerd Lake, best taken in from Cranbury Village Park on the north shore. What stands out is how complete the small-town feel is, given that some of the busiest stretches of Central Jersey sit only a short drive away.
Mount Holly
Mount Holly is the county seat of Burlington County, and it still flies under the radar for most people outside the area. The Mill Race Village district at its center is a restored historic neighborhood of independent shops and restaurants, and the Union Firehouse handles the after-dark side with live shows. For something stranger, the Burlington County Prison Museum opens up a 19th-century jail with a long, reputedly haunted history. It is the most populated town on this list, but Rancocas State Park is close enough that trading the streets for hiking, fishing, or hunting takes only a few minutes.
Woodstown
Woodstown sits in the middle of Salem County farm country, and its biggest draw is right next door in Pilesgrove: the Cowtown Rodeo, the oldest weekly running rodeo in the country, staged on Saturday nights through the summer. The same grounds host the Cowtown Farmers Market, a year-round indoor and outdoor produce and flea market. Downtown Woodstown fills in the rest with breweries, bookstores, diners, and the Blue Moon Theatre for community shows. For a slower look at the surrounding countryside, the Woodstown Central Railroad runs scenic rides and themed excursions through the fields.
Belvidere
Belvidere sits in a bend of the Delaware River across from Pennsylvania, out in rural Warren County, about as far off the main routes as this list goes. Its historic district is one of the best preserved in the region, with buildings dating to the early 1800s arranged around a classic town green. The Warren County Historical Society runs a museum here for anyone curious about how the town and county took shape. A town boat ramp puts you straight onto the river, one of the more underrated stretches for paddling and fishing in this corner of the state.
Eight Towns Worth the Detour
What ties these eight together is not a single landscape but a single habit: each one built its identity around something concrete and kept it. Frenchtown and Belvidere lean on the river, Tuckerton on the bay, Woodstown on its farm-country rodeo, Pitman and High Bridge on a restored theater and an old iron trail. Spend a Saturday in any of them and the appeal is obvious within the first hour, which is the whole argument for taking the exit instead of driving past it.
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