Excludes certain insurance costs from appropriations cap and property tax levy cap for certain local units.

This bill allows New Jersey municipalities to exclude certain insurance costs from annual budget and property tax levy limits for the first three years after it takes effect. Specifically, it exempts increases in liability, workers' compensation, cyber, and property insurance costs that exceed 2.0% of the previous year's expenses. Municipalities will be able to raise property taxes to cover these insurance costs without being constrained by the standard 2.5% budget increase limit. The bill directly affects local governments that must manage insurance expenses while operating within fiscal constraints. This change provides temporary flexibility for municipalities facing rising insurance costs.