🕰 Timeline Rewind - New Jersey Budget Edition

Learn What NJ Legislators And Officials Told The Public In April 2021 About State Spending Plans, Insurance And Covid-Related Financial Interventions

Traveling back in time to Spring 2021 with knowledge of what's happened during the past several months in New Jersey, the United States and the world informs in a way that can bring new perspective and certainly inspires new questions. Flash-forward to December 2021 and many New Jerseyans are left wondering when they get to have a say in how their tax dollars are spent, particularly those deposited for pandemic relief in the NJ Treasury by the federal government via the Coronavirus Aid, Relief, and Economic Security (CARES) Act, the American Rescue Plan (ARP) Act and other Congressional spending bills allocating money to the states.

Many important spending topics - most with ties to the pandemic in one way or another - were discussed in the April 15, 2021 NJ Senate Budget and Appropriations Committee hearing. The meeting was held via Zoom, as was nearly all State legislative business since the lockdown of March 2020. Recent months have seen a shift toward in-person legislative activity, however, a recently enacted policy restricting access to the State House in Trenton undeniably impacts the capacity for members of the public to lobby their legislators and testify on active bills, including those addressing the most critical issues facing New Jerseyans today. A hearing addressing a complaint filed naming the State Capitol Joint Management Commission regarding the State House access policy is scheduled for December 13, 2021 in the Appellate Division of the Superior Court of New Jersey.

Discussion during this hearing includes mortgage, housing, finance and insurance  topics. Bear in mind that November 15, 2021 marked the end of New Jersey's foreclosure moratorium. These issues undoubtedly impact local communities and the ripples - or waves - are felt well beyond New Jersey's borders. For example, NJ real estate continues to be a subject of great interest to many as the pandemic drags on and associated market pressures become apparent.

For better and for worse, state and federal budgets are entwined. Many things come into focus when considering the State of New Jersey's role in the political theatre of Washington D.C. Power struggle sessions in Congress have led to the federal government's budget being funded piecemeal since the start of the new budget period (Fiscal Year 2022) on October 1, 2021. The end of the calendar year signaling the half-way mark for New Jersey's FY22 is fast approaching. Now, more than ever, public scrutiny is necessary at the state level.

The waning days of December 2020 placed a spotlight on health care and the deal referenced in the hearing regarding the Horizon BS/BS restructuring plan. You can read more about that here. It should also be noted that this was concurrent with the kickoff of New Jersey's state-run mass Covid-19 vaccination program. The one year anniversary of the first Covid shots administered in NJ is December 15, 2021. NJDOH Commissioner Judy Persichilli recently announced that day has been designated 'Boost NJ Day' and will be commemorated by statewide Covid booster shot walk-in events.

Although Covid-19 has made it timely, health care policy and spending has long been a hot topic in New Jersey.  In response to the pandemic, extended open enrollment for NJ's state-sponsored health care exchange marketplace Get Covered NJ continues through December 31. Details about other changes that were already underway regarding the structure and funding of NJ's health care exchange were also discussed in the mid-April 2021 hearing.

To date, December 2021 seems focused on expanding and funding myriad government services and pandemic related programs and policies. Since being installed in January, many of the Biden administration's national initiatives have been rolled out in New Jersey first by Gov. Phil Murphy. One might even consider the Garden State to be a 'test market' for progressive policies touching on many sectors including the environment, economics, health care, law enforcement, social programs, police power of the state, and regulation of industry. This pattern gives pause, but it also provides a glimpse of what's happening behind the curtain. Pay attention.

📽 Watch this NJ Budget hearing recorded on April 15, 2021 regarding Fiscal Year 2022 (July 1, 2021-June 30, 2022.) The state spending plan was passed by lawmakers on June 24 and signed by Gov. Murphy on June 29, 2021.

Time markers for speakers, topics are noted below.

April 15, 2021 - NJ Senate Budget Appropriations Committee Hearing: Testimony of NJ Dept of Banking and Insurance (DOBI) Commissioner Marlene Caride

Video available at: https://www.njleg.state.nj.us/media/mp.asp?M=V/2021/SBAB/0415-0100PM-H0-1.mp4&S=2020

Brief introductions

03:10 - Commissioner’s brief of budget report to legislature, achievements, NJ health care exchange marketplace launch, extension of open enrollment in NJ through the end of 2021 (all year.)

11:22 - Financial institutions, mortgage relief covid, DOBI bulletins in 2020, cooperation of insurance and banking institutions

20:42 - $600M planned restructuring of Horizon Blue Cross Blue Shield of New Jersey

22:01 - Sen Oroho; more Horizon questions

24:19 - Sen Diegnan

25:20 - Sen Testa; mortgage forbearance, tenant/landlord financial impact

29:42 - Sen Thompson; auto insurance rates, increased health insurance fraud/covid

33:56 - Sen Singleton; coming bill addressing mortgage forbearance, how NJ funds autonomous healthcare exchange = bypassing Fed

39:40 - Thomas Gallagher, NJDOBI on re-insurance, transfer to General Fund

41:10 - Sen O’Scanlon; staffing at DOBI

45:10 - Sen Ruiz

46:00 - Sen Sarlo (chairman); Health care exchange ‘Get Covered NJ’ future costs

Editors' note: If you want to dig deeper, live and archived meetings, hearings, voting sessions and committee agendas are available on the NJ Legislature website. The NJ Senate Budget and Appropriations Committee met on December 6, 2021. The Assembly Appropriations Committee is scheduled to meet via Zoom on Monday, December 13.