34% Health Cost Explosion is Gutting Our Schools – Support A4750 NOW
Increase Healthcare Cost Hurting Schools And Local Governments
New Jersey’s public education system is facing a serious crisis driven by skyrocketing state-mandated health insurance costs. This is not a local school district problem — it is the direct result of decisions made in Trenton.
The School Employees’ Health Benefits Program (SEHBP) provides health coverage for teachers, aides, administrators, and other school staff across the state. The program is entirely controlled and administered by the state. For Plan Year 2026, SEHBP rates are increasing by approximately 34%. Because most school districts are locked into multi-year contracts with their employees, they have no practical way to offset this massive, sudden spike.
Governor Mikey Sherrill and the Democrat-controlled Legislature bear responsibility for this situation. They control the SEHBP plan design, approve the rates, and have failed to enact meaningful reforms despite years of warnings about rising costs and depleting reserves.
As a result, school districts across New Jersey are being forced to make painful choices:
Wayne School District has already cut special education programs.
Many other districts are preparing to close schools entirely.
Teachers and support staff face layoffs and job losses.
Vital programs are being reduced or eliminated.
Property taxes are rising sharply to fill the gap.
This increase in health care costs also burdens local towns and communities, forcing them to make cuts, reduce services, and raise taxes.
This affects every New Jersey resident:
Parents and families see reduced educational quality, fewer services for children with special needs, and larger class sizes.
Teachers and school employees risk losing their jobs.
Property owners and taxpayers — even those without children in school — will pay higher property taxes.
Renters will face increased rents.
Seniors and fixed-income families are squeezed by rising costs and declining home values if local schools weaken.
This is a hidden tax increase imposed by Trenton that burdens every homeowner, business, and family in the state.
There is a solution on the table.
Assembly Bill A4750 would provide up to $50 million in targeted emergency relief from the Property Tax Relief Fund to help the hardest-hit school districts absorb these uncontrollable health cost increases for the 2026-27 school year. It focuses relief on districts experiencing the most severe tax levy pressure and helps prevent deep cuts to classrooms.
We strongly urge the Legislature to co-sponsor and pass A4750 immediately.
At the Center for Garden State Families, we are fighting to protect New Jersey’s children, families, and taxpayers from the consequences of Trenton’s failed budget priorities. Local schools should not be punished for a state-created crisis.
Your voice matters. Please contact your Assembly members today. Ask them to co-sponsor and vote YES on A4750. Tell them to stand with New Jersey families, not with the failed policies that are harming our schools.
Together, we can hold Trenton accountable and ensure our children receive the quality education they deserve without forcing working families to shoulder even higher taxes.
Thank you for standing with the Center for Garden State Families.