The SHBP hits the fan

Presented by Johnson & Johnson: Matt Friedman's must-read briefing on the Garden State's important news of the day
Oct 24, 2024 View in browser
 
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By Matt Friedman

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Johnson & Johnson

Good Thursday morning!

Officials have described New Jersey’s State Health Benefits Program (SHBP) as being in a “death spiral.” They’re not kidding.

In what looks like an emergency effort to stave off yet another premium increase for local government employees, a Senate committee today is scheduled to hear a brand new bill that would allow the Division of Pensions & Benefits to shift money from the state government benefit part of the SHBP to the local government worker part if the balance of the latter fund dips very low.

I doubt this bill, which is being pushed by the Murphy administration and sponsored by the senate president and Assembly speaker, would be moving this quickly if there wasn’t a dire need for it.

The SHBP has been in trouble for a number of reasons , including the increased use of expensive new weight loss drugs and inflation. What makes the problem much worse is that the rate increases driven by those and other factors have lead to towns leaving the plan for better rates in the private sector — if they can find it. The towns that are able to find it have healthier workforces.. Local governments with less healthy workforces can’t get better rates. So they stick with the state plan. And then, because they’re using it more, rates go up. Hence the death spiral. (The League of Municipalities stresses that some of the local governments can’t reasonably move plans because their workforce is too small.)

The health benefit plans have seen two large rate increases in the last three years. This bill might be able to stave an immediate one off. But I don’t think anyone will argue it solves the larger problem.

TIPS? FEEDBACK? Email me at mfriedman@politico.com .

HAPPY BIRTHDAY — Patrick Murray, Chris Fifis, Stacy McCormack

QUOTE OF THE DAY: “Watch the Tramcar, please.” — Floss Stingel, who recorded the iconic warning 53 years ago and is now suing Wildwood for compensation

WHERE’S MURPHY? In Middletown at 11:45 a.m. to speak at the 180 Turning Lives Around Celebration of Anna Diaz-White

 

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WHAT TRENTON MADE


ELLO GOV’NA — Gov. Murphy will lead a New Jersey delegation to the UK next month, the governor’s office announced Wednesday. The trip to London and Cambridge is organized by Choose New Jersey and will “focus on strengthening New Jersey’s ties with the United Kingdom while cultivating partnerships and international investment opportunities in sectors such as life sciences and technology.” They will fly out on Nov. 6, presumably via umbrella, and return Nov. 12.

I WISH THE COMPTROLLER WOULD SUBPOENA NORCROSS’ HAIR CARE REGIMEN — “N.J. watchdog’s probe of Delaware River Port Authority began with activists’ complaint about George Norcross, court records show,” by The Philadelphia Inquirer’s Andrew Seidman: “A New Jersey government watchdog agency has asked a state judge to order the Delaware River Port Authority to comply with subpoenas for documents and testimony related to the authority’s procurement policies, contracts, and leases. The Office of the State Comptroller made that request in court this month after the DRPA — a bistate agency that collects hundreds of millions of dollars in bridge tolls every year — filed a federal lawsuit seeking to block the subpoenas and alleging the comptroller lacked the power to investigate the authority. … Port Authority CEO John Hanson said in a recent interview that the authority would voluntarily comply with the requests for information but contended that the comptroller lacked legal authority to issue the subpoenas. ‘We cannot set a precedent of accepting this subpoena,’ Hanson said. … In court filings this month, attorneys for Walsh — an appointee of Democratic Gov. Phil Murphy — said the inquiry began in 2020 after the comptroller received a referral from Murphy’s office regarding a complaint from the New Jersey Working Families Party. That complaint alleged that the DRPA ‘has operated as a tool’ of South Jersey power broker George E. Norcross III."

‘JUST THE TIP’ LEGISLATION — “Lawmakers aim to tweak New Jersey’s bribery law to beat gratuity defense,” by New Jersey Monitor’s Dana DiFilippo: “Two lawmakers want to tighten New Jersey’s anti-bribery law to foil anyone who would pretend a bribe was just a tip. Sen. Joseph Vitale and Assemblywoman Yvonne Lopez, both Democrats who represent Middlesex County, introduced a bill this month that would add language to the state bribery statute clarifying that a person is guilty of bribery if they offer, give, agree to take, or take money or some other benefit in exchange for an official act — regardless of whether the benefit was received before or after that act. The bill comes four months after the U.S. Supreme Court ruled that the federal bribery law prohibits bribes to state and local officials but doesn’t make it a crime for officials to accept gratuities for past acts.”

 

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THE INFRASTRUCTURE IS FEELING SHOT SHOT SHOT — “ NJ Transit blames hot weather for some of the problems along the River Line,” by The Philadelphia Inquirer’s Thomas Fitzgerald: “Burlington County residents voiced their frustrations with NJ Transit’s River Line light-rail service during a public meeting Tuesday night in Palmyra: late trains, canceled trains, dangerous track crossings, crime, and grimy stations. ‘River Line service has not been to our expectations and we know it’s not been up to yours,’ NJ Transit CEO Kevin Corbett said. ‘We have fallen short.’ … The River Line cars are 19 years old, maintained and operated by Alstom, a private rail company, under contract to the state agency. It’s hard to get new parts to fix those that fail, said Mike Kilcoyne, NJ Transit senior vice president for surface operations. He said that many of the performance problems were caused by the “high temperatures we all experienced over the last two years.” The heat caused auxiliary power units on the cars to shut down, he said.”

—“New Jersey Transit riders want more safety measures in place after accidents on River Line ” 

—“Officials hope to get long-term answers to NJ Transit struggles next month

—“ Ex-trooper gets probation for punching handcuffed woman in Upper Deerfield” 

—“ Liberty State Park group opposes elimination of free parking lot, supports DEP plan overall” 

—“Homelessness continues climbing in New Jersey, new annual count shows” 

—“New affordable housing figures from the state renew municipal opposition” 

BIDEN TIME


CD7 — “Tom Kean Jr. is all in on Trump. What about mass deportations? ” by The Record’s Charles Stile: “As reported, Rep. Tom Kean Jr. is all in on Donald Trump and even believes that the cat-and-dog conspiracy theorist has the character to be president of the United States. Yet the cautious Kean is only partially ‘in’ on the question of mass deportations of undocumented immigrants, the red-meat issue that Trump routinely delivers with fang-baring clarity to his MAGA faithful. … But what about deporting some 11 million undocumented migrants now living in the country, as Trump has repeatedly promised? Would Kean endorse the promised dragnet? He replied that he supports deporting illegal migrants who have committed crimes. ‘That’s where I would start the conversation,’ he said. Kean took a more tortuous route to the same question in a recent debate with Democrat Sue Altman, his rival in the heated 7th Congressional District race, the only battleground House race in New Jersey this fall.”

—“New Jersey House Race Narrows in Final Days ,” by The New York Times’ Tracey Tully: “Last week, after an independent poll showed that Mr. Kean was leading by just two percentage points, New Jersey’s governor, Philip D. Murphy, called Representative Hakeem Jeffries of New York, the House Democratic leader, to urge support by the House Majority PAC. ‘This is an incredibly tight and closing race,’ Mr. Murphy, a Democrat, said in an interview on Monday before the PAC announced its $4 million infusion of support. … In a brief interview after a candidate forum on Tuesday night sponsored by the Jewish Federation of Greater MetroWest NJ, Mr. Kean said that ‘every single poll from the beginning of this race shows me ahead,’ indicating that he remained confident as the campaign heads into its final days.”

—Moran: “Altman fights her own party bosses. Kean obeys them” 

—“Essex Italian bakery pulls plug on GOP event because owner didn’t want Trump flags” 

—“ Bashaw tries to get mileage from denouncing ‘career politician’ Kim” 

—“NJ Black Republicans on why the Democratic Party is not for them ” 

—“Sarlo on Trump: “I don’t want my kids to act this way’” 

—“New Brunswick looks to expand public smoking ban. Here's where it wouldn't be permitted” 

 

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LOCAL


KNOW YOUR SHOPRIGHTS  — “Inside the controversial program that ‘forced confessions’ from shoplifters in this N.J. city,” by NJ Advance Medai’s Jelani Gibson: “A police department in a New Jersey city routinely asked people suspected or arrested for shoplifting to sign confessions and agree to be banned from nearly a dozen downtown stores, an unusual policy state public defenders and the ACLU say violated their rights. The practice in East Orange — called the ‘Shoplifting Reduction Initiative’ — was revoked by the city days after NJ Advance Media asked about it, according to municipal e-mails obtained by the news organization. It had been in place for at least five years, dating back to 2019, according to the emails. Those suspected of shoplifting were given a form, obtained by NJ Advance Media, that says: “‘ acknowledge that I committed, or attempted to commit, an unlawful act such as Shoplifting, Simple Assault, Disorderly Conduct, Harassment, or Criminal Mischief at this location.’ The form was given to those who were stopped, detained or arrested on suspicion of shoplifting. The names of those suspected were also put into a database, according to the emails. It said those who signed the form were prohibited from entering or being on the property of 10 stores in the commercial district, including ShopRite”

THE FALL OF ROMANO — “Hudson County Commissioners Chair Romano laid off from part-time Hoboken gig,” by Hudson County View’s John Heinis: “Hudson County Board of Commissioners Chair Anthony Romano (D-5) was laid off from his part-time job in Hoboken earlier this month, sources familiar with the situation told HCV … Romano said he was told he was being laid off from the Hoboken Department of Public Safety since the position was being eliminated due to budgetary concerns. He declined to comment further … Romano, a retired Hoboken police captain, assumed the municipal role on January 1st, 2022 and earned $50,000 a year. Back in December, two weeks before the county commissioners named him to his first full term as chair, Romano and his eight colleagues all endorsed U.S. Rep. Rob Menendez (D-8) in a June 4th primary fight that pitted him against Mayor Ravi Bhalla.”

I DON’T WANT IT TO GO UP. I’M A TOYS R US SITE CRITIC — “Pines Lake residents in Wayne worried about what may happen at ex-Toys R Us base,” by The Record’s Philip DeVencentis: “Homeowners in a local lake community are worried about redevelopment of the former Toys R Us headquarters, saying the project will cause flooding and pollute the stream that courses through their well-to-do neighborhood. There is a precedent for their concerns, they insist. In July 1990, an oil tank leaked 900 gallons of fuel at what was then offices for American Cyanamid Co. Some of it went into a storm drain, eventually spilling into Haycock Brook, which feeds into Pines Lake. … The property was designated for office use only, but under the zoning change adopted by the council, it can have mixed uses in certain locations, and up to 1,360 housing units, including 272 affordable units.”

WAVING PISTOLS, WAIVING APPEARANCES — “Northfield mayor accused of brandishing starter pistol during argument waives first appearance,” by The Press of Atlantic City’s John O’Connor: “The Northfield mayor accused of brandishing a starter pistol at a woman during an argument in the Mainland Regional High School parking lot waived his first appearance Wednesday, court officials said. Erland V. Chau, 72, is charged with possession of a weapon for an unlawful purpose, disorderly conduct and harassment … Investigators determined Chau, who is a cross country official and was wearing a New Jersey State Interscholastic Athletic Association referee jacket, then produced a starter pistol to try to gain credibility with the victim, the affidavit states. The victim believed Chau pulled a real gun on her and notified security, who called police.”

ENVIRONMENTALISTS: ‘F__K THE POLISE’ — “Butler Reservoir land where 300 trees were illegally cut now has a lanternfly problem,” by The Daily Record’s William Westhoven : “A Kinnelon land owner cited for illegally cutting down more than 300 trees above the Butler Reservoir will have to remediate the property. But while Vincenzo Polise has been working on a restoration plan, the task has been complicated by invasive plant species that have spread across the clear-cut property, a Kinnelon municipal prosecutor said during a hearing Tuesday. The 3-acre patch has become attractive habitat for spotted lanternflies, the damaging insects that have become a scourge for tree owners and farmers in New Jersey. … The culling, situated below his property but above the reservoir, presumably gave Polise a better view of the scenic 40-acre lake. But it also extended onto public land owned by the Butler Water Department.”

THE RUSTY IRISH MEMORIAL BRIDGE — “Paterson approves $1.1M to replace Great Falls footbridge that closed three years ago,” by The Paterson Press’ Joe Malinconico: “More than three years after the iconic footbridge at the Great Falls was closed for safety reasons, city officials on Monday night approved a $1.14 million contract to replace the structure. The installation of a new footbridge is supposed to be completed within a year, according to the resolution approving the contract. Paterson Great Falls National Historical Park enthusiasts have eagerly awaited the reopening of the bridge — which provides dramatic views of the 77-foot-high waterfall. The work was delayed for more than a year amid a dispute over the structure’s ownership.”

—“Dems ask state to send election monitors to Atlantic City's 5th Ward to keep eye on Callaway” 

—“ Somers Point teacher, Margate lawyer vie for open Atlantic County commissioner seat” 

—“Pat Bailey, former school board member, voted in to fill unexpired term on Atlantic City Council ” 

—“Atlantic City Housing Authority says Stanley heating system fixes to be done by Nov. 30” 

—“Race for Passaic County sheriff pits Sheriff's chief up against Prosecutor's captain” 

—“ Accused Paterson educator rejects plea deal in student assault case” 

—“NJ tells Clifton it can't audit its finances until it has the money to do so ” 

—“[Hackensack] councilman urged to resign after alleged racist comments to soccer coach” 

EVERYTHING ELSE


WHOOP! THERE IT IS — “ Whooping cough on the rise in NJ as flu season arrives. How bad will it be?” by The Record’s Scott Fallon: “After a rise in cases over the summer, whooping cough is continuing to spread across New Jersey just as flu and COVID season unofficially begins this month. The good news is that the start of flu season is the opposite of what can be said about March weather. It has come in like a lamb. Whether it goes out like a lion remains to be seen. Cases of respiratory illnesses, including influenza, COVID and RSV, are low statewide, said the latest report from the state Health Department — a stark contrast to two years ago, when the season roared to a start in autumn.”

—“[Denville] hospital refuses to grant religious exemptions for mandatory vaccines, nurse says in suit” 

—“ 27-year-old cancer survivor taps TikTok to spread awareness” 

— “New Jersey poll workers tend to be seniors. Why more of them are teenagers this election

 

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