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

This bill would allow New Jersey municipalities to exclude certain insurance costs from their annual budget increase cap of 2.5%. It directly affects local governments that pay for specific types of insurance, such as liability or property insurance related to public safety or infrastructure. The bill amends existing law (P.L.1976, c.68) to add insurance costs to the list of exceptions that don't count toward the 2.5% spending limit. This means municipalities can cover these insurance expenses without triggering the budget cap, providing flexibility for budget planning.