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Firefighter study projects $7.1 billion in cost savings for taxpayers from New York’s volunteers

Firemen’s Association of the State of New York President James Williams has announced the results of a recent study conducted by the American Economics Group measuring the economic impact of New York State’s 100,000 volunteer firefighters. The study calculated the effect that the absence of volunteer departments would have and determined the cost to taxpayers to be $2.8 billion in operating costs and another $4.3 billion to convert and expand current facilities.

In calculating tax savings the American Economics Group cited the annual $2.8 billion benefit created by the volunteer effort to be largely that of wages and benefits that paid firefighters would receive if they performed the same tasks according to their current staffing patterns.

Because volunteer firefighters receive no pay and benefits and because significant fundraising by volunteer companies reduces tax levies for fire equipment, the study ultimately calculates how much additional taxes would be necessary to cover the costs of all-paid departments in every area of New York now using volunteers.

“No one is suggesting that such a conversion could or should take place, but it is prudent to understand and not take for granted the enormous amount of volunteer effort that takes place every day in communities all over the state,” Williams said.

Absent volunteer firefighters, property taxes would rise an average of 13.9% on a statewide basis. Some areas such as Lewis and Wyoming counties would exceed a 20% increase while in more densely populated areas such as Nassau and Suffolk counties the increase would be approximately 18% percent.

Converting to an all-paid fire service would require 38,537 full-time equivalent firefighters and 1,937 reconstructed or new fire stations across the state. This is based on staffing practices prevalent in paid departments and does not include EMT and ambulance services. Eighty percent of the EMT responses in New York are volunteer connected to volunteer fire companies.

“These tax savings do not stand alone,” said Williams. “When coupled with the additional spending that the tax savings create there are thousand of jobs created and millions of dollars paid to workers.”

The study specified $3.8 billion of economic activity which created over 32,000 jobs and $962.7 million in wages paid to workers.

New York relies heavily on volunteer fire departments. Of its 1,824 municipal fire department, 95% are all volunteer. The study cited 109,678 volunteer firefighters in 1998, mostly prevalent in smaller, rural communities that have a lesser tax base than their more densely populated neighbors. The average population for all volunteer municipalities is 5,507 according to the study or about 11% of the average figure for all paid municipalities.

Legislative districts have also been surveyed in the American Economics group model and the economic impact of pay and benefits, value of structures and equipment, and the number of additional paid firefighters necessary to provide services were calculated to determine the potential increase in property taxes.

In the State Senate, Senator Owen Johnson’s constituents in the Fourth Senatorial District would experience a 30.3% increase in property taxes according to AEG. This is because the all volunteer departments located in urban communities like Babylon have population densities and property values that exceed urban, all-paid communities.

Charlie Nesbitt, Assembly Minority leader would experience a 20.6% increase in his constituents’ property taxes in his less densely populated district and Paul Tokasz Assembly Majority Leader was listed at an almost 19% increase. The average statewide real property tax increase would be about 13.9% with a wide distribution among the counties.

The greatest tax increase according to AEG would be in Hamilton County, with an increase of 40.1% while the lowest increase would be in Oswego County, 6.7%.

 

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Last updated: 04/26/2010 16:35:50