Gov. Phil Murphy delivered his final address as governor to the New Jersey League of Municipalities Annual Conference on Thursday, focusing his remarks on his administration’s affordability efforts and concluding with a major proposal to save the troubled State Health Benefits Program (SHBP) for Local Government.
Speaking to New Jersey’s 564 municipal leaders, Murphy framed his eight years in office as a success built on partnership and fiscal responsibility, before issuing an urgent call for action on health care reform.
The governor began with a note of thanks and nostalgia, recognizing Mayor Paul Tomasko and Mayor Sean Elwell on assuming the League presidency. He then highlighted the joint effort with local governments to combat the state’s high cost of living.
“I have a simple message to all of you who lead our state’s 564 municipalities: Thank you. Thank you for your partnership in building a stronger, fairer, and more affordable New Jersey,” Murphy stated.
He pointed to property tax relief as a core achievement, noting the significant increase in direct relief programs like ANCHOR and the Senior Freeze.
“By the time I leave office, our administration will have invested more than $18 billion in supporting direct property tax relief for millions of households,” Murphy said, noting that this is $10 billion higher than the previous administration. “In other words, with your help: We have nearly doubled the amount of money that the state has put back into the pockets of New Jersey’s homeowners and renters.”
The governor also credited increased state aid for K-12 education, calling it an affordability measure. “Every dollar that our state spends on public education is a dollar our families get to save in local property taxes,” he stressed.
On the fiscal side, Murphy touted the state’s improved financial standing.
“For the first time in a generation, we have made the full payment into our state’s pension system not once, not twice, but FIVE years in a row,” he said, pointing to New Jersey’s nine credit rating upgrades in the past few years.
The centerpiece of his address was an urgent warning and a specific plan to prevent the collapse of the State Health Benefits Program (SHBP) for Local Government, which has seen premiums skyrocket by roughly 60% due to rising costs and a rapidly shrinking enrollment pool.
“Right now, as things stand: The SHBP for Local Government is on the brink of collapse,” he said. “Unless we take sweeping action — now — to shore up this program, there are tens of thousands of New Jerseyans whose access to health care will be in serious jeopardy. And next June’s rate increases will be astronomical.”
To prevent this “death spiral,” the governor offered a substantial deal:
“Our Administration is willing to provide a quarter billion dollars, in the short-term, to keep the SHBP for Local Government solvent in exchange for smart, structural reforms that will stabilize the program in the long-term.”
He urged municipal and labor leaders to come to the table before his term ends in January, emphasizing the goal of simplifying and modernizing the available plans.
“This program provides health care coverage to our state’s valiant, and often under-appreciated, public servants,” he reminded the audience. “We cannot allow that to happen.”
The governor closed by acknowledging the transition of leadership, offering a strong endorsement to his successor, Governor-elect Mikie Sherrill.
“I cannot tell you how thrilled I am to be passing the baton to Mikie and our next Lieutenant Governor, Dale Caldwell,” Murphy said. “Serving as Governor and serving as Lieutenant Governor of the great Garden State are the best jobs in the world — and the highest honors.”
He concluded by celebrating the state’s progress and sense of identity. “We have mounted an economic comeback for the ages. A comeback that is the envy of the nation,” he finished, adding the famous Jersey rallying cry, “WE’RE FROM JERSEY BABY!!!”
