Allegheny Township to pay workers' compensation for firefighters from fire tax

Allegheny Township will use revenue from the township’s fire tax to pay workers’ compensation insurance premiums for volunteer firefighters.

The township supervisors on Monday did not take up a motion by Supervisor Michael Korns that, according to the motion, would “return the fire tax funds removed from the (Allegheny Township and Markle volunteer fire departments) for the purpose of paying workers compensation premiums for volunteer firefighters in 2025.”

That’s because, according to Supervisors Chairman Jaime Morabito, representatives from both fire departments met with Township Manager Dan Miller in January and were advised of the state’s Act 140 of 2024, which allows Second Class townships more flexibility in managing fire and emergency services funding.

Supervisors in February passed a resolution accepting Act 140.

Miller said Monday the law allows for costs that support fire protection, such as paying workers’ compensation premiums, to come from the fire tax.

Doing so protects the township’s general fund for broader township operations and gives more accurate cost tracking for fire services, Miller said.

“The use of the fire tax fund provides a clear and traceable link for us to have a purpose for the tax and also the expense that it supports,” Miller said.

Supervisor Jeff Pollick said he believed it would be unfair and “double dipping” to taxpayers to pull money from the general fund and the fire tax revenue for workers’ compensation.

Morabito asked why the township was discussing something that was voted on unanimously by the supervisors in February.

Korns acknowledged he voted for that motion in February but said it was “vaguely worded” and didn’t outline that the township would take workers’ compensation premiums out of the fire tax.

Korns said that at the July meeting, he and Pollick agreed to direct the township manager to not follow taking the workers’ compensation premiums out of the fire tax. That was invalid because it was not a public vote, Morabito said.

Morabito charged that the fire companies are getting more transparency and money from the board of supervisors than they did before.

“We cannot give money out that was not budgeted, period,” Morabito said. “That’s just not how it works. And us being more transparent up here might look different from what you guys have been used to.

“But I think that, collectively, in your departments, you need to go back and look and see why you both have not been receiving the full amount of money for all those years.”

According to numbers presented by Pollick and Miller, the fire tax this year stands to generate roughly $102,000, which means the fire companies would receive about $51,000 each.

But $11,000 of that money for each company will be used to pay the workers compensation premiums, dropping the amount each company gets in cash to $40,000.

In 2024, each company was to receive about $52,000.

Prior to that, the numbers were lower, Miller said. In 2020, for example, the Allegheny Township fire company was to receive $34,458 and Markle was to get around $39,000, he said.

“The reason that the fire departments did not get their full allocation in those years is (that) we had a full-time code enforcement officer who we couldn’t afford to pay enough,” Korns said.

“He was code enforcement officer, he also was the public safety director and the emergency management coordinator and he got paid $25,000 for that,” Korns said. “That came out of that fire tax.”

“… That’s what the money went for, and it wasn’t for workers’ compensation. We always budgeted for that in our general fund,” Korns said.

Morabito and Pollick said they only learned of that information when Korns said it at the meeting.

Morabito said the fire companies should call for an investigation into why the fire tax revenue was being used in that manner.

He also suggested the fire companies seek their own quotes for workers’ compensation.

“Instead of us dictating who you use for your workmans’ comp, you might be able to save yourself money, and we’ll write you a check for that,” Morabito said. “You have that option, and we’d like you to exercise that option.”

Morabito also said he would be open to placing a fire tax millage increase as a ballot referendum if the fire companies wanted to do so.

Korns feared that if the township raised the fire tax millage, the fire companies would see a decrease in annual donations.

A group of Markle fire company members walked out of the meeting room when it was clear the matter wouldn’t be taken up for a vote.

Morabito said he was agitated by that and felt their disapproval was misplaced.

“I didn’t take any of your money. I’m giving you back more money now than you ever got, but you’re upset with me, and this board, too, because we didn’t vote for something we didn’t need to vote for,” Morabito said. “It should have never been at this meeting.”