Labor leaders and elected officials want $350 million from the state to offset steep health benefits increases coming Jan. 1.

Towns and counties will bear much of the costs of these benefits increases – and, in turn, could pass it on to taxpayers.

Labor officials say local governments will be hit with a 20% insurance cost increase and an 18% pension increase.

Paterson Mayor Andre Sayegh says his city may have to shut down a city library or a firehouse to cover the increased costs.