State firefighters would lose as much as $15 million a year in
funding if Gov. Mark Sanford’s tuition tax-credit bill passes.
The money, used for training, education and benefits, comes from
a tax paid by insurance companies on collected premiums. The money,
nicknamed “1-percent” funds because of how much firefighters receive
of total premium taxes, is especially important for providing
benefits as departments statewide struggle to recruit volunteer
firefighters.
Lawmakers said any impact on firefighters was unintended and are
looking to amend the bill.
“It’s kind of the glue, the bond, that holds the fire service
together,” Jim Bowie, executive director of the S.C. Firemen’s
Association, said of the funds. “To not be able to give them
incentives ... makes it more difficult (to recruit)”
Many S.C. fire departments, including some in the Midlands, have
struggled to recruit and retain volunteer firefighters because of
the time demands, training and high risks of the job. Some
departments use their 1-percent money to fund retirement benefits
for their firefighters — one way to entice veterans to continue
answering fire calls.
Departments also use the money for station amenities that keep
volunteers active.
“I spent a lot more time at the station house because there was a
pool table,” said Columbia Fire Chief Bradley Anderson, a former
volunteer.
Insurance premium taxes also fund the S.C. Fire Academy and the
Office of State Fire Marshal.
Members of the House Ways and Means Committee, where the bill is
being debated, said the budget impact on firefighters is
unclear.
The bill, which supporters call Put Parents in Charge, would
allow insurance companies to donate to private schools and deduct
that amount from their premium taxes.
Right now, premium taxes are earmarked for firefighters, unlike
other income taxes.
“It was inadvertent,” said Rep. Jim McGee, R-Florence, a member
of the Ways and Means committee. “It can be easily cleaned up ...
and will be cleaned up.”
Rep. Rex Rice, R-Pickens, another committee member, has drafted
an amendment that would replace any lost 1-percent money with
general-fund dollars.
“I don’t think anybody looked that far into it to see where it
(insurance premium taxes) was going,” Rice said.
The state Department of Revenue did not believe there were any
other industries whose taxes were earmarked for specific
spending.
Sanfordhas pushed hard for the legislation, and spokesman Will
Folkssaid he was open to Rice’s amendment.
“The governor is still committed to giving parents more choices,”
Folks said.
The bill is scheduled for another hearing before the Ways and
Means Committee next week. Firefighters planned to travel Tuesday to
the State House to lobby legislators.
Reach O’Connor at (803) 771-8435 or johnoconnor@thestate.com.
