Your child’s teacher could be cut next as NJ school health insurance costs explode

🔴 Schools in Bergen and Ocean counties report health premium hikes of up to 32%.

🔴 Hikes threaten mass layoffs and the elimination of vital student programs.

🔴 Districts say small bumps in state aid can't cover multi-million dollar budget deficits.

WASHINGTON (Bergen) — Teachers in school districts throughout New Jersey may lose their jobs because of rising health insurance costs that are out of control.

New Jersey schools are facing the same inflationary pressures that have increased the costs of utilities and groceries for families. That's what Westwood Regional School District Superintendent Patrick McQueeney said in a letter to parents earlier this month.

Massive spikes in health insurance premiums

In one year, staff health insurance premiums soared 32% in the Westwood Regional School District, said McQueeney. Prescription benefits have also gone up 25%.

That will drain another $3.2 million from next school year's budget. New data from the state Department of Education shows that Westwood Regional will see a 6% rise in state aid. The $240,000 increase to just over $4.2 million is far from enough to cover the difference.

State aid falls short for NJ school districts

The district may have to choose between staff reductions and cutting entire student programs. At a recent board meeting, McQueeney said superintendents from three other school districts "were in the same boat as us, wishing and hoping that there's going to be something done at a higher level with regards to health insurance premiums."

"It doesn't paint a great picture, but the picture is not just Westwood. It's the entire state," McQueeny said.

Lacey schools are dealing with the same situation. Health insurance costs will jump 29% for a $3.5 million budget hit, school officials say.

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Classroom sizes swell as teacher positions are cut

School board President Kim Klaus said Lacey is facing a $5 million deficit. That's despite cutting more than 150 teaching positions, which has resulted in classroom sizes with more than 30 students.

Lacey schools will also see a 6% rise in state aid, up to $7.7 million. And just like in Westwood Regional, that $436,000 won't make up the difference. It's hardly a drop in the bucket compared to the $14 million the district has lost since the school funding formula changed in 2018.

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