More than 250 New Jersey school districts could see increases in their health insurance premiums by as much as 20% next year.

Fred Beaver, the state’s pension director, gave the grim news to the School Employees’ Health Benefits Commission. The premium hikes could lead to property tax increases or spending cuts for districts to find the money to cover the increases, according to the Star Ledger.

Districts facing the higher premiums, including Newark, Elizabeth and Morris, are members of a state benefits plan created last year. Through the plan, employees have lower co-pays that cover more out-of-network costs than the base plan for other public employees.

By July 1, a total of 254 school districts and more than 115,000 of their employees will receive health benefits through the program, according to the New Jersey School Boards Association.

Beaver told the group that the program has been strained by higher numbers of insurance claims and late payments by school districts, according to the report.

Gov. Jon Corzine recently ordered a pair of state commissions that oversee health benefits for public employees to review possible ways to prevent double-digit increases in premiums. Corzine suggested tighter controls on groups including schools, such as preventing delayed premium payments and kicking those who fail to pay out of the program, the paper reported.

A spokesman for the state treasury department said 21 school districts owe $1.2 million in back payments.

In the new state plan, premium increases have previously been kept low by using funds reserved for paying larger-than expected insurance claims. Last year, the Star Ledger reported, the state used $45 million to reduce premiums for school districts and $28 million for other public employees.