State firefighters would lose as much as $15 million a year in funding if Gov. Mark Sanfords 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.
Its kind of the glue, the bond, that holds the fire service together, Jim Bowie, executive director of the S.C. Firemens 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 dont 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.
Sanford has pushed hard for the legislation, and spokesman Will Folkssaid he was open to Rices 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.
Distributed by the Associated Press
