The work group met as directed by the language in SB 233 to review the specified data and evaluate options for revisions to the current population-based formula. Any revisions would be made to more equitably distribute Aid to Localities (ATL) grants from the Fire Programs Fund, specifically to less populated and rural localities. Such localities have faced considerable and increasing difficulties in maintaining their fire services for reasons such as rising costs of firefighting equipment and apparatus due to inflation, fiscal distress, and a national downward trend in volunteerism in the fire service.

The work group reviewed the research completed by VDFP staff that provided data on the population and land area by square mileage of all localities receiving ATL funds. VDFP also provided an overview of the methods of fire service funding used by five neighboring states: Kentucky, Maryland, North Carolina, Tennessee, and West Virginia. Of these states, only Kentucky has a similar funding process using a surcharge on insurance premiums, but it also has significant differences as well. The group considered several possible formulas that utilized different weights for population and land area, as well as a percentage increase for localities listed as fiscally stressed by both the Department of Housing and Community Development and the Virginia Economic Development Partnership. Ultimately, the work group consensus was that any revision that removes funding from some localities to allocate more to other localities is not a satisfactory solution and will not address the root problem. The work group suggested that other options outside of the study charge of SB 233 would be more effective in making progress towards providing more robust support for the Commonwealth’s fire services. Two reports, one completed by the Secretary of Public Safety and Homeland Security in 2024 and one by Virginia Commonwealth University’s Center for Public Policy in 2024, offer more tailored recommendations to address the root problem impacting fire departments.