Newark pulled a controversial proposal to grant lifetime taxpayer-funded health benefits to a departing councilman after Republican lawmakers called for a state investigation.
A proposal that would have granted lifetime taxpayer-funded health benefits to outgoing Newark City Council member Carlos M. Gonzalez was withdrawn Wednesday after New Jersey Assembly Republicans publicly called for a state review of the measure. The resolution had been scheduled for consideration by the Newark City Council before being pulled from the agenda.
The development came hours after four Republican Assembly members sent a letter to the Division of Local Government Services urging officials to review and reject the proposal, arguing that the benefit could violate state law and impose long-term costs on taxpayers.
Lawmakers sought state intervention
In the letter, Assembly members Brian E. Rumpf, Gerry Scharfenberger, Al Barlas, and Michael Inganamort asked the state to immediately investigate Newark City Council Resolution 26-0190. The lawmakers contended that the measure would create a one-time exception allowing Gonzalez to receive benefits typically reserved for city employees with lengthy service records.
“We write to urge the Division of Local Government Services to immediately review and reject any attempt by the City of Newark to provide lifetime taxpayer-funded health benefits to an outgoing member of the Newark Municipal Council,” the legislators wrote.
According to the letter, the resolution stated that employees who serve the City of Newark for 25 consecutive years are granted lifetime health benefits. The proposal sought what lawmakers described as a “one-time rule relaxation” for Gonzalez based on his elected service.
Concerns over taxpayer costs
The Assembly members argued that Gonzalez did not meet the standard service requirements outlined in the resolution and questioned whether an elected official should receive a benefit intended for municipal employees.
“If this resolution is adopted it represents a troubling example of political insiders rewarding one another at taxpayer funded benefit while the residents of Newark and New Jersey struggle with rising costs, property taxes, and healthcare expenses,” the letter stated.
The lawmakers also pointed to Newark’s reliance on state aid, noting that the city receives more than $110 million annually in municipal aid from New Jersey. They argued that state funding should support municipal services rather than expanded benefits for departing elected officials.
Resolution withdrawn before vote
Shortly after the letter became public, the New Jersey Assembly Republican caucus announced that Newark had withdrawn the resolution planned for Wednesday’s council meeting. In a social media post, the caucus said the action followed calls for a state review of the proposal.
The letter requested that state officials determine whether the measure violated any statutes or regulations governing municipal compensation and benefits, assess its fiscal impact, and take action to prevent implementation if it conflicted with state law or the public interest.
“The residents of Newark deserve a government that is going to spend tax dollars for the betterment of their community, not on ‘fringe benefits’ for an elected official who chose not to seek re-election,” the lawmakers wrote.
Key Points
• Newark withdrew Resolution 26-0190 after Assembly Republicans requested a state review.
• The proposal would have granted lifetime taxpayer-funded health benefits to outgoing Councilman Carlos M. Gonzalez through a one-time exception.
• Lawmakers asked the Division of Local Government Services to investigate the legality and fiscal impact of the measure.