For Discussion Only
Thursday, October 15, 2026
Submitted by Tina Dare, Secretary-Treasurer
New Jersey Education Association
Thank you, Senator Beach, the members of the Committee, Prime Sponsors Senators Gopal and Vitale, and the many bipartisan sponsors of this legislation, including Senators Turner, McKeon, Polistina, Greenstein, McKnight, Mukherji, Smith, Timberlake, Diegnan, Stack, Zwicker, Lagana, Tiver, and Wimberly. We are grateful for the support of so many respected legislators who recognize the urgency of this situation.
S4438 is a solution we strongly support because, as my fellow officers have emphasized, it is built on collaboration and a shared commitment to doing what is best for students and schools.
In addition to collaboration, the bill advances another important principle that aligns with the Governor’s vision of good government: accountability and transparency. The trust established by this legislation is specifically designed to provide both.
Under the current system, neither transparency nor accountability is fully present. Employee representatives serving on the commission do not have access to the same information available to Treasury representatives. Contractual restrictions often classify pricing information as proprietary and therefore unavailable for meaningful review.
The result is a system in which annual rate increases occur without meaningful intervention or corrective action. Year after year, costs continue to rise, and no effective measures have been taken to prevent subsequent increases from becoming even more severe. Today’s 34 percent increase is evidence of that failure.
The State has repeatedly attributed the current crisis to Chapter 44. However, an honest assessment demonstrates that this explanation alone is neither credible nor sufficient. Similar challenges can be seen among participants in the State Health Benefits Program who are not governed by Chapter 44 and who are nevertheless experiencing substantial premium increases.
Rather than focusing on assigning blame, we are focused on solutions. This legislation delivers two critical improvements over the current system. First, it guarantees complete transparency by ensuring that all trust members have access to all claims data, analyses, and other information necessary for responsible plan design and administration.
Second, the legislation establishes fiduciary responsibility. Trust members will not only have access to comprehensive information, but they will also be legally obligated to act in the best interests of both beneficiaries and employers. As fiduciaries, they cannot simply observe unsustainable cost increases and fail to act. They must work together to develop and implement measures that reduce costs and improve outcomes.
These changes represent fundamental reforms that promote responsible stewardship of taxpayer dollars, protect programs and services for students, and provide greater stability for school district budgets.
Just as the bill requires transparency and accountability, we have sought to uphold those same principles throughout this legislative process. We have been open with legislative sponsors and leaders regarding the feedback we have received and the amendment requests that have been raised. We have worked diligently to address concerns and move the conversation forward constructively.
As this legislation advances, and as we take this important first step today, we ask all stakeholders to continue working together with a shared commitment to transparency, accountability, and the best interests of New Jersey’s students and schools. Our focus should remain on serving those students rather than protecting individual preferences or interests that benefit from maintaining the status quo.