In 2026, New Jersey state legislators will receive a 67% salary increase, making them the highest paid part-time legislators in the country. Meanwhile local governments in the State Health Benefits Program will face a 36.5% increase in the cost of premiums that have risen 115% over the last five years.
Atlantic County Executive Dennis Levinson finds each of these facts unconscionable.
“These persistent increases make the State Health Benefits Program unsustainable,” he said. “Our state legislators should give this issue as much priority as their paychecks.”
Local governments fund health benefit coverage for their employees. Individual members are responsible for a portion of those costs which have increased exponentially in comparison to cost of living salary increases.
“Our health benefits package used to be the carrot we could offer to attract quality employees to government jobs that paid less than the private sector,” explained Levinson. “But that is no longer the case, making it all the more difficult to attract and retain good employees.”
In July, the New Jersey Department of Treasury announced the recommended 2026 rate increases for the three state-administered health benefit plans. This included a 36.5% increase in premiums for the plan that covers county and municipal employees; a 29.7% increase for the plan that covers school employees; and a 21% increase for the plan that covers state employees.
“What are our state legislators doing to contain health care costs,” Levinson asked. “They increased their own part-time salaries from $49,000 to $82,000 but have failed to offer any solutions for the men and women who provide essential public services, many of whom live paycheck to paycheck to support their families.”
“I am not the only one asking this question,” he continued, “but as the longest serving county executive in the state, I was encouraged to bring this to the forefront.”
Others who are also questioning the exorbitant health care premium increases include the New Jersey League of Municipalities with 564 members, the 21-member New Jersey Association of Counties, the Atlantic County Board of Commissioners, and the Atlantic County Mayors Association.
“How can local governments meet our mandated caps while having to absorb these soaring costs each year? We are somehow just supposed to find a way to make it work. Unfortunately, that can mean reducing programs and services our residents depend upon,” said Levinson.
“It’s well past the time for New Jersey to exercise fiscal responsibility,” he added. “With an overall debt of more than $200 billion and $5 billion a year to service that debt, our state Legislature cannot continue to spend money it doesn’t have and put the burden on our taxpayers.”
According to Levinson, Atlantic County has been exploring other options to the State Health Benefits Program in response to the continuing increases in premium rates for local governments.
“But there is a process we must follow and that takes time – time we are rarely given before the next hike is announced.”
“New Jersey needs to do a better job at reducing spending, managing costs, and being a responsible steward for our citizens,” concluded Levinson.
