TRENTON, N.J. (AP) - New Jersey Senate President Steve Sweeney and the state’s biggest teachers’ union said Monday they’ve reached a deal that would overhaul workers’ health benefits, resulting in $1 billion in annual savings.
Only some details were available, and the agreement between Sweeney and New Jersey Education Association President Marie Blistan would require legislation before being enacted.
That means that measures would need to clear the Democrat-led Senate and Assembly before heading to Democratic Gov. Phil Murphy.
Murphy spokeswoman Alyana Alfaro said in an email that the governor looks forward to reviewing Sweeney and Blistan’s deal.
In a statement, Assembly Speaker Craig Coughlin said lawmakers would review the proposal, but added that he’s “confident that today marks yet another important step” in efforts to achieve long-term fiscal savings.
Sweeney said most of the savings would come from the design of teachers’ health plans,
Among the changes he and Blistan discussed involve how teachers finance their health benefits. Under legislation signed by former Gov. Chris Christie, union members pay for benefits as a percentage of health care premiums. Under the new proposal, they’d instead pay as a percentage of their salary.
The agreement would amount to about $670 million in savings for school districts, which get funded by levying property taxes on residents. New Jersey residents paid about $16 billion in school taxes in 2019, according to the state. The proposed savings would be about 4% of the 2019 school portion of the property tax levy.
About $403 million in savings from the changed plans would go to members of the union.
The deal comes after Sweeney and the union clashed for years stemming from disagreements over funding of the public pension, and the union’s decision in 2017 to back Sweeney’s political opponent.
It also comes after Sweeney had called for cuts to teacher health benefits to save the state money.
Sweeney said he plans to put the legislation formalizing the deal with the teachers on the floor for a vote this month.
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