“This budget is a betrayal of the very working people who elected him into office,” said Billy Gallagher, Assistant to the Vice President, CWA  District 1. “Budgets are moral documents and this one makes painfully clear where Governor Murphy stands. Gov. Murphy has chosen to gut $100 million in health benefits for public sector workers and retirees.”

“What’s worse,” Gallagher continued, “for over a year and as recently as just three days ago, the labor members of the Plan Design Committee pushed for a plan design change that could save up to $1.1 billion in SHBP costs, without hurting workers. But the Administration refused to move it forward because it would have required renegotiating existing contracts with insurance carriers and Pharmacy Benefits Managers. It’s the height of  hypocrisy that Gov. Murphy has no concern about breaking our contract and bypassing collective bargaining with public employees.”

Despite revenue projections now being $700 million higher than prior estimates, the $100 million cut will be imposed on the State Health Benefits Plan (SHBP), bypassing collective bargaining and setting up a new, unilateral process. This will result in higher co-pays, deductibles, and out-of-pocket costs for state employees and their families—at a time when the cost of living is already untenable. Additionally, this arbitrarily imposed cut comes less than two weeks before the expected premium rate report for plan year 2026 with expected increases of over 20% for state workers and as high as 30% for local governments.