I. State Issues
a. Proposed Increase to State Health Benefits Rates Update
Earlier this week we advised you that the State Health Benefits Commission (SHBC) was scheduled to meet Monday, July 25, via conference call for its Annual Rate Renewal meeting. The SHBC has removed the rate hike proposal from the July 25 agenda for consideration at a later date.
While not publicly available, the League and Association of Counties had learned that preliminary rate increases for consideration include a 24% increase for Active Medical, a 3.7% increase for Active Pharmacy, a 15.6% increase in Early Retiree Medical, and a 0.7% increase for Medicare. Early Retiree Pharmacy has a 5.7% decrease. This is clearly an extreme and unsustainable immediate increase that should require the SHBC to review further and look for other avenues to limit the preliminary rate increases. According to recent news accounts, Treasury noted that the “rates for active members and early retirees would likely be increase between 12-20% across the various plans for the upcoming year.”
Senate President Scutari, along with Senators Ruiz and Sarlo, issued a statement urging the SHBC to delay consideration of the proposed rate renewal and noted that they “will get engaged in this issue to prevent these exorbitant increases from being approved.” Republican leadership from the Senate and General Assembly issued a statement calling for a special legislative committee to investigate the health care premium increases with Senator Oroho noting, “The 24% premium increase proposed for most active employees will take thousands more out of their paychecks annually and lead to huge costs for local governments that will translate into higher property tax bills for struggling families.” Assemblyman DiMaio stated that “Taxpayers, employees and retirees living on fixed incomes cannot afford the anticipated cost increases for state health benefits on top of what they are paying just to live, eat and work in New Jersey.”
Although we certainly appreciate the SHBC taking the time to reconsider the substantial increases, the League, the New Jersey Association of Counties (NJAC), and the New Jersey Municipal Managers Association (NJMMA) are urging municipalities and counties to remain in contact with the Governor’s Office and their respective legislative delegations as SHBC evaluates alternative proposals to mitigate the impact on property taxpayers and public employees.
Contact: Lori Buckelew, Deputy Executive Director & Director of Government Affairs, lbuckelew@njlm.org, 609-695-3481, x112.
b. Governor Murphy Signs Police Licensing Program Into Law
On Thursday, July 21, Governor Murphy signed into law S2742/A4194, establishing a statewide police licensing program and appropriating $6 million to establish the program. Governor Murphy highlighted that with this new law New Jersey would join the ranks of 46 other states that have a police licensing program.
The new law establishes the licensure process and qualifications standards for officers and applicants. The Police Training Commission (PTC) is required to establish the processes to acquire a law enforcement license, including minimum criteria for the initial license. The PTC also holds the power to suspend, revoke, or deny an issuance of a law enforcement license. The law enforcement license must be renewed every three years. A law enforcement official wishing to renew their license must apply through their employing law enforcement agency. If an active license holder commits any action that would result in a suspension of a license, the employing law enforcement agency is to notify the PTC. $6 million has been allocated from the General Fund to the Department of Law and Public Safety to implement these new licensing requirements.
The League supports the police licensing program and thanks the sponsors, and Governor Murphy for signing this legislation into law. We recommend reviewing S-2742/A-4194 with your police department, labor attorney, and administration for the impact on your community.
Contact: Andrew LaFevre, Legislative Analyst, alafevre@njlm.org, 609-695-3481, x116.
c. New Lead-Based Paint Inspections Requirements Now Law – Resources and Training Available
As a reminder, the new lead-based paint inspection requirements, pursuant to P.L.2021, c.182, take effect today, July 22, 2022. The law, signed by Governor Murphy last year, imposes an obligation on municipalities to perform or hire a certified lead evaluation contractor to perform inspections of certain single-family, two-family, and multiple-rental dwellings for lead-based paint hazards every three years or upon tenant turnover where there is no valid lead-safe certification. Municipalities must permit dwelling owners/landlords to directly hire a certified lead evaluation contractor for this purpose.
Municipalities that fail to comply with the new inspection requirements may be subject to a penalty of up to $1,000 per week.
Municipal officials are encouraged to review the guidance issued by the Department of Community Affairs (DCA), along with the recent Lunch and Learn programs on these new requirements, held June 3 and July 15, hosted by the League and presented by the DCA. In addition, the DCA will be holding several workshops providing an overview of the law’s inspection requirements, enforcement requirements, and considerations regarding how to address lead-based paint hazards in the upcoming weeks.
Contact: Lori Buckelew, Deputy Executive Director & Director of Government Affairs, lbuckelew@njlm.org, 609-695-3481, x112.
d. NJEDA Expanding Electric Vehicle Voucher Program
The New Jersey Economic Development Authority (NJEDA) announced a $45 million expansion of the New Jersey Zero Emission Incentive Program (NJ ZIP), doubling the amount of funding dedicated to the program. NJ ZIP provides vouchers to businesses and intuitions, including eligible municipalities, for the purchase of zero-emission medium- and heavy-duty vehicles.
NJEDA anticipates opening applications in the coming months. Vouchers will be available on a first-come, first served basis. For more information and to apply for NJ ZIP, please visit the NJ EDA website.
Contact: Frank Marshall, Esq., Associate General Counsel, fmarshall@njlm.org, 609-695-3481, x137.
e. Division Issues State Aid Payment Schedules
The Division of Local Government Services has issued Local Finance Notice 2022-14, CY 2022/FY 2023 State Aid payment schedule. Consolidated Municipal Property Tax Relief (CMPTRA), Energy Tax Receipts (ERT), and the Municipal Relief Fund aid ACH deposit dates are August 1 (45% of aid), September 1 (30% of aid), October 3 (15% of aid), November 1 (5% of aid), December 1 for calendar year and transitional year municipalities (5% of aid), and June 1 for state fiscal year municipalities (5% of aid). Watershed Moratorium and Open Space PILOT payments will be made October 1. Senior Citizens/Veterans Property Tax Deductions will be made in November.
Contact: Lori Buckelew, Deputy Executive Director & Director of Government Affairs, lbuckelew@njlm.org, 609-695-3481, x112.
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