HARRISBURG Measure helps fund firetrucks

The program provides loans at a 2 percent fixed interest rate.
HARRISBURG (AP) -- More than a year after voters authorized the Legislature to borrow up to $100 million to assist volunteer fire and ambulance companies, lawmakers have passed a measure that would tap half that amount to expand a low-interest loan program that finances equipment purchases.
The state House of Representatives unanimously passed a bill earlier this week to increase the bond debt level of the Volunteer Loan Assistance Program, which provides loans at a fixed interest rate of 2 percent, from $50 million to $100 million.
The program was established in 1976 and currently has a balance of $2.3 million, but there are 102 pending applications for loans totaling $10 million, said Rep. Paul Semmel, who sponsored the legislation.
"Today, the unfortunate thing is these volunteer organizations have to spend a lot of time doing fund raising to meet the needs of their capital expenditures for new equipment," said Semmel, R-Lehigh. "We're trying to make sure they don't have to spend so much time doing that."
The bill now goes to Gov. Ed Rendell, who plans to sign it, said his spokeswoman, Kate Philips.
July legislation
In July, the governor signed legislation authorizing a one-time $25 million grant program for purposes such as buying equipment, building or renovating facilities, and reducing debt.
The loan program expansion was made possible through a referendum on the bond issue in 2002 that was approved by a nearly three-fourths majority of the state's voters.
"The referendum was a requirement for the future sale of bonds," said John Comey, executive assistant David M. Sanko, the Pennsylvania Emergency Management Agency's director.
Pennsylvania has about 2,400 fire companies, and most them are volunteer organizations, said Thomas L. Savage III, executive director of the Pennsylvania Fire and Emergency Services Institute.
Increasing concern
Funding has become an increasing concern because, while some communities provide money for volunteer companies through special taxes or fees, small, rural towns typically do not.
"The loan fund as it exists today is being depleted because the cost of equipment is higher. Trucks are much more expensive," Savage said.
More work still needs to be done, however, to ensure that volunteer companies can survive in the long run, Savage said. A newly appointed bipartisan legislative committee is studying ways to improve the delivery of fire and emergency services, and he said he hopes the panel will suggest long-term solutions.
"Many municipalities cannot afford the increasing cost of emergency services, and in today's world you don't find as many people who are willing to volunteer -- they have too many things on their plate," Savage said.