Middletown School District Fights Proposed Health Insurance Bill

MIDDLETOWN, NJ — The Middletown school district is currently fighting an attempt by some New Jersey lawmakers that opponents say will result in the state meddling in how Middletown funds its teacher health insurance, and decides its yearly school budgets.

The school district opposes A6217, a bill proposed in the state Assembly by Speaker Craig Coughlin (D-Middlesex County) and its corresponding bill in the state Senate, introduced by outgoing Senate President Steve Sweeney (D-South Jersey). (Sweeney is the same lawmaker who was beat this November by a MAGA-loving Republican truck driver.)

The bill has significance in Middletown because in 2021, the Middletown school district switched to self insurance for its teachers and staff, which is projected to realize a cost savings of $2- to $2.5 million in 2022, said Board member Frank Capone.

If the Coughlin/Sweeney bill becomes law, it would give the state Legislature "the right to intervene as parties on local mandates," read the bill's language.

Basically: "If this passes (Trenton) is going to be able to control school board health insurance plans," warned Capone. "It will be a disaster for everyone."

Capone led the change this year for Middletown schools to switch to self insurance: The Middletown school district still provides health insurance for its teachers and staff, but self-insurance is pay as you go, as opposed to generalized insurance where the district pays a premium each month per employee.

Capone said switching was necessary as the Middletown school district continues to grapple with getting millions less in state aid from Trenton.

Middletown schools superintendent Mary Ellen Walker and Capone, who usually don't agree, find themselves aligned on this issue.

Last Friday, Dec. 17, Walker sent a letter to all of the area's representatives to Trenton — Assemblyman Gerry Scharfenberger (R), Assemblywoman Serena DiMaso (R) and state Sen. Declan O'Scanlon (R) — telling them to vote against the bill.

The letter was signed by Walker, business administrator Amy Doherty and cc'd Middletown school board president Joan Minnuies and BOE vice president Capone.

Walker said if the bill is approved, it has the potential to significantly increase costs for Middletown taxpayers.

"It would effectively grant the Legislature unfettered authority to enact laws that alter the healthcare plans public employers offer to their employees without any consideration of the cost impact resulting from such changes," wrote Walker in her letter. "The law would impede this board's ability to provide the most efficient budget to meet the district's needs."

The New Jersey School Boards Association is also against the proposed law, as is the state League of Municipalities. The bill was supposed to be voted on Monday in the Assembly, but failed to be called for a vote — which usually means it does not have enough support to pass.

"Who is actually for this?" asked Capone Tuesday. "Bill A6217 is just another classic example of Trenton bureaucrats giving themselves the ability to create whatever changes to public health plans they see fit with zero regards to how the district and taxpayers will have to pay for it. This bill may ultimately be a very costly unfunded state mandate that could affect staff and classroom resources in the very near future."

Walker also said this bill would put too much power in the hands of Trenton lawmakers and the state Department of Education, and take away the right of individual school districts to make their own budgets.

"The bill raises significant constitutional concerns as well,"said Walker. "The NJ Constitution places a strong and important limitation on the Legislature's ability to enact laws that impose unfunded mandates on local governments ... Do not support this legislation (A6217/54248) which impedes our ability to manage our own school district and could increase the costs to our taxpayers."

Earlier this year: Middletown Schools To Get 7 Percent Less Funding From Trenton (Feb. 2021)

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