On Thursday, May 15, State Treasurer Elizabeth Maher Muoio and OLS Budget Officer Thomas Koenig testified for the second time before the Senate Budget and Appropriations Committee on the FY2026 budget.
FY2026 budget recommended allocation of $58.1 billion including a proposed $6.3 billion surplus and a slightly improved revenue forecast.
The Treasurer concluded by expressing concern about the State Health Benefits Plan (SHBP) and indicated that trends are expecting higher increases this year. While the rate-setting process does not begin until June, the Treasurer noted that trends suggest double-digit increases. Specifically addressing her concerns to the SHBP Local Government section, she reported that increases will likely be well above 20% for Plan Year 2026, as the premiums would have to consider a margin of 19.5% to restore the Claim Stabilization Reserve. These increases are before any benefit or service increases.
The League will continue to provide additional information as necessary.
Contact: Erin Knoedler, Legislative Analyst, eknoedler@njlm.org, x116.