RESOLUTION
BY COUNCIL PRESIDENT COLLINS-BELLAMY, MAJORITY LEADER RUBBO, MAJORITY WHIP NORMAN, MINORITY LEADER BREEN, COUNCILMEMBERS PINEDA-ISAAC, DIAZ, AND HODGES:
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A RESOLUTION REQUESTING NEW YORK STATE PASS LEGISLATION TO PROVIDE RECURRING AID TO MUNICIPALITIES TO OFFSET COSTS OF THE NEW YORK STATE HEALTH INSURANCE PROGRAM (NYSHIP)
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Whereas, the New York State Health Insurance Program (NYSHIP) provides health insurance coverage to municipal employees and retirees across New York State; and
WHEREAS, healthcare costs under NYSHIP are increasing at a rate significantly exceeding inflation, while municipalities have no authority to control, plan, or design, premium setting, or cost-containment measures; and
Whereas, the 2026 NYSHIP family plan premium increased by 8.79 percent to approximately $44,000 annually, and if such growth trends continue, the cost of a family plan is projected to exceed $100,000 by 2036; and
WHEREAS, efforts to mitigate these costs through increased employee or union contributions cannot fully offset the magnitude of projected increases; and
WHEREAS, the City of Yonkers currently faces gross annual NYSHIP premiums totaling approximately $240 million, which are projected to exceed $550 million within ten (10) years - an average annual increase of $31.8 million; and
WHEREAS, the City’s current property tax levy totals approximately $452 million, and under the New York State property tax cap, annual levy increases are limited to approximately two percent (2%), generating only $9.9 million in additional revenue per year which results in a projected annual shortfall of approximately $21.9 million solely attributable to health insurance cost growth, even before accounting for other mandatory spending increases including pensions, contractual salary obligations, and other non-discretionary expenses; and
WHEREAS, even freezing all other municipal spending would not be sufficient to close the projected gap created by escalating NYSHIP costs; and
WHEREAS, New York State should take legislative action to provide on-going aid to alleviate this burden that will fall on municipalities throughout the State; and
WHEREAS, such aid shall reimburse municipalities for a reasonable and equitable portion of their annual NYSHIP cost increases, thereby preventing disproportionate impacts on property taxpayers and local budgets and that this recurring assistance shall be structured to provide predictable, formula-based support reflective of each municipality’s proportional NYSHIP cost growth; and
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Yonkers hereby requests that the New York State Legislature take action to ensure municipalities such as Yonkers can continue providing essential services while maintaining fiscal stability and protecting local taxpayers from unsustainable cost burdens of sky rocketing health insurance costs under the New York State Health Insurance Program; and
BE IT FURTHER RESOLVED, that the City Council requests the City Clerk to forward a copy of this Resolution to the Legislature of the State of New York requesting the introduction and passage of the legislation; and
BE IT FURTHER RESOLVED, this this resolution take effect immediately.