Skyrocketing Health Insurance Costs Hammer Red Bank Budget

Councilman Mike DuPont says Red Bank's staggering cost of health insurance, up 22 percent, "cries out" for reform. DuPont, discussing the borough's preliminary budget, said health insurance accounts for $463,000 of an overall budget increase of more than $800,000 for the borough.

DuPont, who introduced the budget and its 4.2 percent overall increase prior to the start of Wednesday night's , stressed that the preliminary figure is just a starting point and would likely come down once department heads meet to discuss cost cutting measures.

But he said he can't fathom the 22 percent increase in the borough's health insurance costs, saying there's no justification for the increase. According to borough records, insurance claims have decreased in recent years, he said.

"(This) cries out for a need for reform," DuPont said.

The preliminary budget is $20.773 million, up more than $800,000 from last year's .  It includes a tax levy of $11.621 million and a municipal tax rate of 53.2 cents per $100 of assessed value, a 2.3 cent increase over last year's tax rate. The owner of a house assessed at $401,000 - the average assessed value in Red Bank - would see a $94 tax increase should the rate remain the same. Property owners must also pay county and local school taxes, in addition to the municipal taxes.

The news for Red Bank isn't all bad, however. While the borough has had to pay back $135,000 in successful tax appeals, new construction and development, most of it on the west side of town, has helped make up for the lost cost. Then there was the absence of any monster snowstorms at the start of this year, too.
Debt service has remained mostly flat and the preliminary budge for this year, DuPont said, is actually lower than the budget first introduced this time last year.

The state requires municipalities to introduce their budgets by March, though DuPont said Red Bank's budget is far from finalized. Though no public meeting dates have been set, DuPont said department heads will meet over the next few weeks and by the time Red Bank's next council meeting rolls around there will be opportunities for public input.

The borough's budget must be finalized by April 25.