North Carolina Subsidy for Firefighters’ Workers’ Comp in Jeopardy

Facing a tight state budget, North Carolina’s lawmakers are reconsidering the state’s financial commitment to a workers’ compensation fund that covers voluntary first responders in local communities.

The Volunteer Safety Workers’ Compensation Fund was set up in the late 1990s to help offset the costs of workers’ compensation coverage, especially for those units primarily manned by volunteer members. Paid employees are covered through their county or municipality policies.

Although the fund’s 1,300 members do pay premiums, a substantial amount of the money comes from the state’s general revenues.

Supporters of the fund day it needs at least $2 million from the state to survive, but the House budget calls for only half that amount.

North Carolina State Firemen’s Association Executive Director Paul Miller said that when the fund was set up the plan called for the state to provide $4.5 million over seven years, after which the fund would be self-sustaining. However, lawmakers have often reduced that amount for various reasons, which he said makes it necessary for the fund to continue to be subsidized.

Kerry Hall, spokesperson for Insurance Commissioner Wayne Goodwin, who is also the state fire marshal, said the department is not immune to the state’s budget woes. But he said that unlike other years when the state has had to make cuts, this time they could be permanent. “The House budget calls for as low as $1 million,” he said. “But this time they are not just thinking about doing it this year, but making that amount permanent.”

If the state can only come up with $1 million, Miller said the fund could close. “We are at a critical phase and it looks like we need $2 million to survive,” he said.

If the fund is no longer viable, he said, the departments would lose the savings the subsidies provide and end up in the state’s assigned risk pool paying much higher rates.

“We are talking about savings that is used to buy equipment, uniforms, and pay for training so that North Carolinians can rest assured they have the very best fire and safety services available,” said Miller.

State Fire Marshal Goodwin has asked state lawmakers to continue an adequate subsidy.

“Volunteer fire and rescue workers put their own safety on the line to help protect their communities,” said Goodwin. “I implore our legislators to fund the Volunteer Safety Workers’ Compensation Fund in a way that allows it to continue to meet its obligations to its members.”

Topics Legislation Workers' Compensation North Carolina