Nearly a decade ago, Cody Miller, a former councilman in Gloucester County, successfully pushed to eliminate a perk enjoyed by many local elected officials in New Jersey. The perk in question was health insurance coverage for part-time officials who earned less than $10,000 a year. Miller argued that it was unfair for taxpayers to bear the burden of providing generous insurance coverage to part-time officials when other part-time workers didn’t receive such benefits.
Now, as a newly elected legislator, Miller aims to extend those prohibitions statewide. He plans to introduce a bill that would bar part-time mayors and council members from receiving full-time benefits. His proposal aims to strengthen existing restrictions and include other government insurance plans not covered by the current rules.
This is a perk that really, really should not be allowed anymore, stated Miller, a Democrat who will be sworn into the Assembly next month. He sees these benefits as a slap in the face to taxpayers and other government workers.
Miller’s call for action comes after an investigation by NJ Advance Media revealed that many towns in New Jersey continue to disregard a 2010 law that limited eligibility for coverage through the State Health Benefits Program (SHBP) for local mayors and council members. According to the law, officials seated after its enactment must work at least 35 hours per week to qualify for SHBP insurance, which can be valued at over $35,000 annually for family plans.
Over the past decade, several municipalities offered questionable coverage to their elected officials through SHBP, even though the officials mostly held other jobs beyond their public positions. Some officials received insurance benefits that far exceeded the small salaries they earned as part-time officials. In other cases, townships paid officials who waived benefits, compensating them up to $5,000 each year.
Despite some high-profile cases, such as the prosecution of former mayors in Wildwood for fraudulently accepting state health insurance, the issue persists. The Attorney General’s Office also initiated a criminal investigation in Montclair last year after allegations that elected officials there accepted benefits despite appearing to work only part-time.
Miller’s proposed ideas would further ensure that part-time officials are not unduly benefiting from full-time perks. He supports grandfathering in officials who already receive government insurance to allow them to continue being covered.
However, the state’s current rules have faced criticism from municipal advocates who claim that the lack of clear guidance on how to calculate and document elected officials’ hours creates confusion in SHBP towns. Clarification from the Legislature or administrative action to address these concerns is needed.
The Treasury Department, which oversees SHBP, has stated that it informed local governments about the program’s rules after the 2010 law was passed. However, the department does not track which municipalities offer benefits to their elected officials. It is the responsibility of each township to determine whether their officials are eligible.
NJ Advance Media’s investigation identified examples of towns such as Long Beach Township and Clark Township, where officials received SHBP benefits despite being seen as part-time elected officials. In Long Beach Township, Commissioner Joseph Lattanzi, a practicing physician, and his family received coverage costing taxpayers over $243,500 in the past nine years. Clark Township Council President William Smith and Councilman Steven Hund, who were ineligible for coverage, received benefits totaling over $522,000. Calls for their resignations have been made by concerned constituents in Clark Township.
Miller’s proposal seeks to rectify this issue and ensure that taxpayer funds are used judiciously. By forbidding part-time officials from receiving full-time benefits, he aims to level the playing field and prevent the exploitation of a system designed to support those who genuinely dedicate themselves to public service.
