THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE RESOLUTION

INTRODUCED BY SOLOBAY, BARRAR, BELFANTI, BEYER, BOBACK, BRENNAN, BRIGGS, CALTAGIRONE, CAUSER, D. COSTA, DeLUCA, DePASQUALE, EVERETT, FAIRCHILD, GEORGE, GIBBONS, GOODMAN, GRUCELA, HENNESSEY, HESS, HORNAMAN, M. KELLER, KILLION, KORTZ, KOTIK, LONGIETTI, MAHONEY, MILLER, O'NEILL, QUINN, READSHAW, REICHLEY, K. SMITH, STEVENSON, TRUE, VULAKOVICH, WHITE, YOUNGBLOOD, YUDICHAK, MURT, CREIGHTON, SIPTROTH, GEIST, HELM AND PALLONE, MARCH 27, 2009

AS REPORTED FROM COMMITTEE ON VETERANS AFFAIRS AND EMERGENCY PREPAREDNESS, HOUSE OF REPRESENTATIVES, AS AMENDED,JUNE 1, 2009   

A RESOLUTION

Directing the Legislative Budget and Finance Committee to

examine the equity of the current formula for funding

volunteer firefighters' relief associations.

WHEREAS, State funding of volunteer fire departments through

firefighters' relief associations is generated by a 2% tax on

fire insurance purchased by Commonwealth citizens from companies

not incorporated in Pennsylvania; and

WHEREAS, There are 1,973 volunteer firefighters' relief

associations in this Commonwealth; and

WHEREAS, One thousand one hundred forty-one of these

volunteer firefighters' relief associations have total monetary

assets of less than $50,000 and 30 have total monetary assets of

less than $2,000; and

WHEREAS, The allocation of each volunteer firefighters'

relief association is determined by a formula based on the

population and market value of real estate in the municipality

served by the relief association; and

WHEREAS, The Foreign Fire Insurance Tax Distribution Law

(Chapter 7 of the Municipal Pension Plan Funding Standard and

Recovery Act) requires that 50% of the funding generated by the

fire insurance tax be distributed based on the population of a

municipality in proportion to the population of the entire

Commonwealth and the remaining 50% be distributed based on the

market value of the real estate of a municipality in proportion

to the market value of real estate for the entire Commonwealth;

and

WHEREAS, A change to the formula for the distribution of

funds to volunteer firefighters' relief associations may result

in greater equity in funding volunteer fire departments;

therefore be it

RESOLVED, That the House of Representatives direct the

Legislative Budget and Finance Committee to examine the equity

of the current formula for funding volunteer firefighters'

relief associations and report its findings to the House of

Representatives along with any recommended changes to the

distribution formula within six months of passage of this

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resolution.