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NJ Treasury officials sound alarm about health benefits for local government employees

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NJ Treasury officials sound alarm about health benefits for local government employees



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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.

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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.

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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.

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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.”

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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



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NJ officers surprised with Eagles playoffs tickets for saving boy who fell through ice

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NJ officers surprised with Eagles playoffs tickets for saving boy who fell through ice


Officers in Gloucester County, New Jersey, got a big surprise on Friday morning.

A representative from Dunkin’ gave them free tickets to this weekend’s Eagles playoff game as a huge thank you for their courageous actions last weekend.

It was a tense scene in Woolwich Township when officers used ropes and went into a frozen body of water to save a child who had fallen through the ice.

“As soon as he started screaming that he couldn’t feel his hands, I just went out there and tried to go get him,” Sgt. Joseph Rieger said. “Immediately thought of my own son and what I would have done with my own son- just go out and get him as soon as I could.”

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The boy was screaming and was not able to grab onto the rope that the officers had thrown to him.

“I try to get him the rescue rope but he can’t hold it because his hands aren’t working. So I go to grab him out of the awter and we both go into the water. So I was able to stand up and throw him on top of the ice and start breaking my way back,” Rieger explained.

The team was able to get the 13-year-old out of the frozen water with no one getting hurt.

Then, Dunkin’ showed up to the police department for Law Enforcement Appreciation Day and praised their actions by giving them tickets to Sunday’s Eagles playoff game against the 49ers.

“This is my job. It was what I signed up to do so getting this kind of attention, I’m not used to it. I’m very appreciative and very excited,” Rieger said.

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The officers said that if there’s anything to take away from this story, it’s to stay off of the ice.

Thankfully, the boy they saved is doing just fine and stopped by the police department earlier this week to thank them.

“It was awesome. It was nice to see that he was safe. He learned his lesson. He was very appreciative,” Rieger said.



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Police investigate fatal stabbing in Mercer County

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Police investigate fatal stabbing in Mercer County


EWING TWP., N.J. (WPVI) — Police are searching for a suspect who fatally stabbed a man in Mercer County, New Jersey.

It happened around 5:20 p.m. Thursday on the unit block of New Hillcrest Avenue in Ewing Township.

When police arrived, they found a 40-year-old man lying in the street with several stab wounds to the torso.

He was transported to Capital Health Regional Medical Center, where he later died.

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The victim has been identified as Jimmy Chase from Philadelphia.

So far, no arrests have been made.

Anyone who has any information on this case is asked to call Mercer County detectives at 609-989-6406.

You can also submit an anonymous tip online at MercerCountyProsecutor.com.

Copyright © 2026 WPVI-TV. All Rights Reserved.

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The arrest of New Jersey’s royal governor changed the colony forever

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The arrest of New Jersey’s royal governor changed the colony forever



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  • The 1st New Jersey Regiment, made up of local tradesmen and farmers, placed Franklin under house arrest after he refused to yield authority.
  • Franklin later led Loyalist operations from Manhattan, using knowledge of New Jersey to target rebel homes and disrupt Patriot efforts.

On a bitter January morning in 1776, Patriot militia from the 1st New Jersey Regiment slogged through slush to the Proprietary House in Perth Amboy. Their target was William Franklin, the Crown’s highest-ranking civilian official between New York and Philadelphia.

Franklin was not a visiting British officer or a passing bureaucrat. He was the royal governor of New Jersey, and his arrest was a milestone that destroyed the bridge back to reconciliation.

His father, Benjamin Franklin, was already a figure of international renown. Printer, scientist, inventor and diplomat, he moved easily between Philadelphia and London. William had grown up in that orbit, trained in law and politics.

Unlike his father, who increasingly sympathized with the colonial cause, William sided with the Crown. He saw loyalty to Britain as vital to protect law, order and property.

Story continues below photo gallery.

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In the months before militiamen arrived at his door, Franklin steadfastly refused to yield authority as governor. While local Committees of Observation enforced boycotts and intercepted mail, Franklin continued issuing proclamations, corresponding with British officials and loyalists and asserting that the government was still under control of the Crown.

By early January, patience had ended among members of the state’s revolutionary committees. Allowing Franklin to operate inside New Jersey was no longer seen as tolerable.

Shoemakers, tanners and farmers

The men sent to detain him were not professional soldiers in the British sense. In the 1872 “Official Register of the Officers and Men of New Jersey in the Revolutionary War,” historian William Stryker wrote that the 1st New Jersey Regiment was drawn largely from Essex, Bergen and Elizabethtown.

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Stryker noted that shoemakers and tanners from Newark, men who had watched their businesses tighten under British currency and customs policies, made up a significant portion of the early volunteers.

Alongside them were Dutch-descended farmers from the Hackensack Valley, many of whom viewed Franklin’s land agents and surveyors as a threat to their claims, historian Adrian Leiby wrote in the 1962 work “The Revolutionary War in the Hackensack Valley.”

It also had members of the Elizabeth-Town Rifles, whose officers lived within sight of the British fleet in New York Harbor.

The group included men who had previously served during British campaigns during the French and Indian War, when Franklin held a captain’s commission. In her 1990 biography “William Franklin: Son of a Patriot, Servant of a King,” historian Sheila Skemp wrote that some had trained with him, while others had marched beside him.

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Mission led by Lord Stirling from Basking Ridge

Primary source journals from the regiment describe the uncomfortable silence of the Jan. 8 mission, led by William Alexander, an aristocrat from Basking Ridge known as Lord Stirling. In the 1847 volume “The Life of William Alexander,” William Alexander Duer wrote that before the war, Stirling and Franklin had shared wine, discussed land deals and attended the same elite galas.

The group did not storm the Proprietary House. Contemporary journals describe a solemn encirclement. Guards were placed at the gates. According to the “New Jersey Archives” published in 1886, Franklin was informed by Stirling rather plainly that he “received orders… (and) to prevent your quitting the Province… I have therefore ordered a guard to be placed at your gates.”

Franklin objected immediately, calling the arrest a “high insult” and illegal.

The 1886 “New Jersey Archives” record that he argued that nobody in New Jersey possessed the right to restrain the king’s appointed governor, but it was no use. Authority had shifted.

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Franklin signed a parole agreement restricting his movement. Within weeks, it nonetheless became clear that he had no intention of complying.

Seized and transported to Connecticut

He continued corresponding with loyalist figures and acting as governor in all but name. The Provincial Congress responded by ordering his removal from New Jersey. In June 1776, Franklin was seized again and transported under guard to Connecticut.

While Franklin remained imprisoned, events in New Jersey continued. Royal government collapsed. A new governor, William Livingston, assumed office. New Jersey moved formally into rebellion.

Franklin was released in a 1778 prisoner exchange and sent to British-occupied New York City. He did not return to New Jersey. Instead, he took up a new role as president of the Board of Associated Loyalists, an organization tasked with coordinating loyalist refugees and retaliatory actions against Patriot strongholds.

In research for the Online Institute for Advanced Loyalist Studies, Todd Braisted wrote that this organization operated as a paramilitary arm of the Loyalist cause.

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From Manhattan, Franklin drew on his detailed knowledge of New Jersey’s geography and leadership. Raids authorized under the board targeted farms, barns and ironworks. Loyalist parties crossed the Hudson at night, seizing property and prisoners in Bergen and Essex counties.

Leiby documented that survivors later testified that attackers called out names as they approached, which provided evidence of the advanced knowledge Franklin had gathered as governor.

Franklin’s actions during these years ensured that he could never return. When the war ended, he relocated permanently to Britain, where he died in 1813.



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