Jefferson Township Budget Strained by Soaring Insurance Costs

24% spike in health insurance premiums adds $1.5M to 2026 budget

Published on Feb. 21, 2026

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Jefferson Township is facing a nearly $1.5 million increase in insurance costs for the upcoming year, with health insurance, liability insurance, and retiree benefits all rising by a total of 24%. The Township's Business Administrator Debra Millikin reported the sharp premium hikes during a special budget meeting, noting that these uncontrolled fixed costs are putting significant strain on the municipal budget.

Why it matters

Rising insurance costs are a major challenge for local governments across New Jersey, as they struggle to balance budgets and fund essential services. Jefferson Township's situation highlights the broader trend of municipalities grappling with escalating insurance expenses that are eating up an ever-larger share of their budgets.

The details

The Township currently uses the North Jersey Municipal Employee Benefits Fund as its insurance provider. According to Millikin, the cost of health insurance, retiree benefits and retiree medicare for 2026 has increased by a total of 24%. The preliminary 2026 budget accounts for expected health insurance costs of $5,366,025 and liability insurance costs of $875,640, with employees contributing an additional $843,765 toward their coverage.

  • The New Jersey Department of Banking and Insurance (NJDOBI) warned of significant health insurance rate increases back in October 2025.
  • The Jefferson Town Council held a special budget meeting on February 17, 2026 to address the insurance cost hikes.
  • The Council will meet again on February 25, 2026 to continue budget discussions, with a final approval date scheduled for no later than May 6, 2026.

The players

Debra Millikin

The Jefferson Township Business Administrator who reported the nearly $1.5 million increase in insurance costs for the upcoming year.

Eric Wilsusen

The Mayor of Jefferson Township who noted that the uncontrolled fixed costs like insurance premiums are driving the municipal budget.

North Jersey Municipal Employee Benefits Fund

The insurance provider used by Jefferson Township, whose premium increases are straining the township's budget.

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What they’re saying

“Liability, health insurance, retiree benefits. All of that went up this year.”

— Debra Millikin, Jefferson Township Business Administrator (tapinto.net)

“The uncontrolled fixed costs that we have absolutely no control over that drive our budget.”

— Eric Wilsusen, Mayor of Jefferson Township (tapinto.net)

What’s next

The Jefferson Town Council will meet again on February 25, 2026 to continue budget discussions, with a final approval date scheduled for no later than May 6, 2026.

The takeaway

Rising insurance costs are a major fiscal challenge for municipalities across New Jersey, forcing local governments to make difficult budget decisions and find ways to control these uncontrollable fixed expenses. Jefferson Township's situation highlights the broader pressures facing cities and towns as they grapple with escalating insurance premiums that are consuming an ever-larger share of their budgets.