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Trenton, out of the State Health Benefits Plan, tells state board its health costs hit $73M; $18M cap waiver passes 5–2
Under oath at the Sept. 9 Local Finance Board meeting, Trenton’s business administrator said city health costs went from $56 million in 2025 to $73 million in 2026. The mayor said Trenton left the State Health Benefits Plan and self-insures. Two board members voted against the city’s $18 million budget-cap waiver. One said the board was “here a year later with the same situation.” The city’s own April budget shows a smaller insurance figure.
Photo: Trenton City Hall, Aug. 30, 2014. Famartin / Wikimedia Commons, CC BY-SA 4.0. Figures: Local Finance Board transcript, Sept. 9, 2026; City of Trenton CY 2026 introduced budget presentation. Infographic: Jersey Intel.
- What we know: On Sept. 9, the State’s Local Finance Board approved Trenton’s request to exceed the state budget cap by about $18 million. The vote was 5–2, with members Robert Jackson and William Close voting no. Business Administrator Maria Richardson testified health costs were $56 million for 2025 and $73 million for 2026.
- Why it matters: Mayor W. Reed Gusciora told the board Trenton withdrew from the State Health Benefits Plan, is self-insured, and “found better.” The city’s April 7 budget presentation lists its full “Insurance” appropriation at $71.7 million for 2026, up from $56.8 million. That is less than the $73 million the city testified to for health costs alone.
- What’s next: Trenton is on the board’s Oct. 14 agenda seeking approval of a $20 million bond ordinance under the Municipal Qualified Bond Act.
TRENTON — The capital city asked the State for permission to break its budget cap and told the board why: police salaries and rising pension and health benefit costs. One board member, pointing to a similar request a year earlier, voted no.
The Local Finance Board, part of the Department of Community Affairs, heard Trenton’s application on Sept. 9, 2026, by video conference. The posted agenda lists a $18,001,469 “Proposed CAP Waiver (Surplus)” for the City of Trenton. A certified transcript of the meeting was dated Sept. 25.
The testimony
Mayor W. Reed Gusciora told the board, “We’re requesting an 18 million dollars out of CAP waiver.” He said “Approximately, 12 million of that is due to police salaries,” and that the city had added officers after laying off 125 in 2011. He said 52% of Trenton’s property is tax-exempt, that the city receives transitional aid and is “under the monitorship of DCA,” and that costs for police and fire pensions and health benefits had risen.
Board Chairman Michael Rogers asked about health care. Business Administrator Maria Richardson answered: “Actually, for 2025 our health cost benefit was 56 million dollars. And for 2026, would be 73 million dollars.”
Rogers asked whether the city was still in the State Health Benefits Plan.
“No, we withdrew,” Gusciora said. “We’ve found better.”
Asked whether Trenton was in a health insurance fund (HIF) or was “self-insured just as a city,” the mayor answered: “Self-insured.”
The transcript doesn’t say when Trenton left the state plan or what it pays administrators, brokers or insurers.
Two no votes
Board member Robert Jackson said he would vote no. “I’m looking at the report that we received last year, September 2, 2025. And it says, given this point in the budget process, I see no alternative other than recommending that we approve the request for a waiver. And we’re here a year later with the same situation.”
“I think that we need to draw the line, the proverbial line, in the sand,” Jackson said. “I think more could be done to work on this number, personally, but I will be voting no.”
Rogers said Trenton’s late timing comes partly from the transitional-aid program, because that aid isn’t determined by July 1. The motion, read aloud as $18,001,470 (the agenda lists $18,001,469), passed with yes votes from Rogers, Dominick DiRocco, Alan Avery, Idida Rodriguez and Ryan Cooper. Jackson and William Close voted no.
Two different numbers
Trenton’s April 7, 2026 introduced budget presentation compares requested 2026 appropriations with the adopted 2025 budget. Its line labeled “INSURANCE” shows:
| CY 2025 adopted | CY 2026 introduced | Change | |
|---|---|---|---|
| Insurance (budget presentation) | $56,763,311 | $71,724,600 | +$14,961,289 |
| Health costs (Sept. 9 testimony) | “56 million” | “73 million” | about +$17 million |
The presentation doesn’t break out how much of the $71.7 million line is health coverage. It says separately that general liability and workers’ compensation insurance is 4% of 2026 appropriations. The $73 million testified to for health alone is about $1.3 million more than the entire insurance line in the introduced budget. Neither document explains the gap.
The same presentation says the budget “includes appropriations which exceed cap restrictions by $18M and will require a waiver from the Local Finance Board to adopt.” It assumes $59 million in transitional aid, up from $40.5 million in 2025, and a 2% municipal tax-rate increase.
Back on Oct. 14
The Local Finance Board’s posted Oct. 14, 2026 agenda lists Trenton again: a $20,000,000 “Proposed Adoption of an Ordinance and Issuance of Bonds Pursuant to the Municipal Qualified Bond Act.” The meeting is public and held on Microsoft Teams.
Jersey Intel is preparing records requests on Trenton’s self-insured health plan, including claims reports, its administrator and broker contracts, and the analysis behind leaving the state plan.