Bayonne Superintendent of Schools John Niesz is urging state legislators to address skyrocketing employee healthcare premiums, which he called a major contributor to the 12 percent tax increase in the recently approved $223 million school district budget.
By Dan Israel/Hudson County View
In an April 29th letter to the Bayonne community, Niesz explained that the tentative budget for “reflects the district’s commitment to providing a high-quality education for all students while maintaining a fiscal responsibility to taxpayers.”
Bayonne was not alone in New Jersey school districts that faced tax increases in their budgets driven by employee healthcare benefits payments, but the Peninsula City’s Public Schools are currently staring down a 33 percent healthcare premium hike.
“Like many districts across New Jersey we are facing increased costs in healthcare obligations,” he said.
“Despite careful planning and cost containment efforts, the significant increase of $12.8 million dollars in healthcare costs has necessitated a tax increase of 12 percent of our current tax levy to ensure we can sustain the programs, staffing, and services our students depend on.”
While the district was able to address rising costs in most areas of the budget, Niesz said that it faced an “insurmountable” increase in healthcare costs.
“In order to maintain the same mandated healthcare benefits for all district employees, the district will face increased costs of $12.8 million in the 2026-2027 school year to retain the same benefits,” he said.
“This 33 percent increase from the current budget has forced the district to increase the tax levy to avoid any significant impact to staff and students.”
According to Niesz, the budget prioritizes classroom instruction, student safety, and academic support, while continuing to invest in initiatives that promote student achievement and well-being.
“We have worked diligently to minimize the impact on taxpayers by identifying efficiencies, leveraging grant opportunities, and reducing non-essential expenditures wherever possible,” he said.
“It is important to emphasize that this budget is not about expansion – it is about preservation and stability.”
Niesz said that, without the tax increase, the district would be forced to make “difficult reductions” that could negatively affect students’ educational experience.
As such, Niesz has penned state legislators asking for their assistance in bringing down employee healthcare benefits payments.
He also urged residents to contact these elected officials to ask for their help in addressing the issue that he said is affecting families around the state.
“The current increase in healthcare costs for our district is not a situation unique to the City of Bayonne,” he said.
“Healthcare companies have increased rates for school districts across the state.”
Then in a separate letter to legislators, Niesz expressed his serious aforementioned concern regarding the “continued and unsustainable” rise in healthcare costs for public school districts- including in Bayonne.
“As you are aware, school districts across New Jersey are facing significant fiscal pressure,” he said.
“Among the most challenging drivers of these budget increases are employee health care premiums, which continue to rise at rates that far outpace state aid growth and local revenue capacity.”
According to Niesz, the current structure of the State Health Benefits Plan leaves few options to control costs locally, and will continue to force the district to raise taxes without any adjustment.
“While we recognize and value the importance of providing comprehensive health benefits to our employees, the current structure leaves school districts with limited flexibility and few viable options to control costs,” he said.
“Without meaningful reform or additional state support, districts like ours will continue to face increasing tax burdens or reductions in educational services.”
He urged the New Jersey Legislature to reevaluate the structure and cost drives of the State Health Benefits Program; explore opportunities for increased local control and flexibility in plan design; provide relief measure or increased state aid specifically targeted to offset healthcare cost increases; and engage school district leaders in a collaborative dialogue to develop sustainable and long-term solutions.
“Our goal is simple: to preserve the quality of education for our students while maintaining fair and responsible fiscal management. However, we cannot achieve this without your support and leadership on this issue,” Niesz concluded.
