VFD Funding Law Amended

Training for: Legal Notes

The State law governing municipal funding of separately incorporated volunteer fire departments (VFDs) has been significantly amended.

Previously and for many years, the law required that if an annual appropriation for a VFD exceeded $1,000, expenditures from that appropriation must be itemized before being paid by the municipality (see 30-A M.R.S.A. § 5722(4)). In other words, an appropriation exceeding $1,000 could not simply be paid over to the VFD in one lump sum, without any itemized accounting for expenditures. This helped ensure that public dollars appropriated for a VFD were being spent for public fire protection purposes, not for other, possibly private purposes of the organization.

But effective Nov. 1, 2017, the law no longer requires itemized expenditures before the municipality makes payment. Instead, it authorizes municipal appropriations in any amount to support an incorporated VFD “as long as the purposes for which an appropriation is made… are itemized” (see PL 2017, c. 33). This apparently allows the entire appropriation to be paid over to the VFD, to be deposited and expended directly by the VFD, without a simultaneous accounting to the municipality.

We’re not entirely sure why this change was made or what it means exactly. Presumably it gives VFDs more control over their municipal funding, but this could be at the expense of full accountability to the taxpayers. In any case, what qualifies as an “itemized” appropriation under the amendment is unclear. Though the new law is ambiguous, the choice of “itemized” suggests that some degree of specificity is required.

For municipalities that wish to continue the longstanding practice of requiring itemized expenditures before making payments to VFDs, they can do so by adding suitable language to the appropriation. For example, “provided that no amount from this appropriation shall be paid by the municipality without itemizing the expenditure,” or words to this effect, should do.

While we’re on the subject, making certain that a VFD is incorporated is critical to both the municipality and members of the VFD (see “Unincorporated Volunteer Fire Departments – So What?,” Maine Townsman, Legal Notes, August 2008). Only incorporated VFDs are eligible for municipal funding. And only members of an incorporated VFD are considered municipal employees for purposes of liability and worker’s comp. To confirm that a VFD is incorporated and in good standing, use the “corporate name search” feature at https://icrs.informe.org/nei-sos-icrs/ICRS?MainPage=x.

For more on the relationship between VFDs and municipalities, see our “Information Packet” on fire protection, available free to members at www.memun.org. (By R.P.F.)

The State law governing municipal funding of separately incorporated volunteer fire departments (VFDs) has been significantly amended.

Previously and for many years, the law required that if an annual appropriation for a VFD exceeded $1,000, expenditures from that appropriation must be itemized before being paid by the municipality (see 30-A M.R.S.A. § 5722(4)). In other words, an appropriation exceeding $1,000 could not simply be paid over to the VFD in one lump sum, without any itemized accounting for expenditures. This helped ensure that public dollars appropriated for a VFD were being spent for public fire protection purposes, not for other, possibly private purposes of the organization.

But effective Nov. 1, 2017, the law no longer requires itemized expenditures before the municipality makes payment. Instead, it authorizes municipal appropriations in any amount to support an incorporated VFD “as long as the purposes for which an appropriation is made… are itemized” (see PL 2017, c. 33). This apparently allows the entire appropriation to be paid over to the VFD, to be deposited and expended directly by the VFD, without a simultaneous accounting to the municipality.

We’re not entirely sure why this change was made or what it means exactly. Presumably it gives VFDs more control over their municipal funding, but this could be at the expense of full accountability to the taxpayers. In any case, what qualifies as an “itemized” appropriation under the amendment is unclear. Though the new law is ambiguous, the choice of “itemized” suggests that some degree of specificity is required.

For municipalities that wish to continue the longstanding practice of requiring itemized expenditures before making payments to VFDs, they can do so by adding suitable language to the appropriation. For example, “provided that no amount from this appropriation shall be paid by the municipality without itemizing the expenditure,” or words to this effect, should do.

While we’re on the subject, making certain that a VFD is incorporated is critical to both the municipality and members of the VFD (see “Unincorporated Volunteer Fire Departments – So What?,” Maine Townsman, Legal Notes, August 2008). Only incorporated VFDs are eligible for municipal funding. And only members of an incorporated VFD are considered municipal employees for purposes of liability and worker’s comp. To confirm that a VFD is incorporated and in good standing, use the “corporate name search” feature at https://icrs.informe.org/nei-sos-icrs/ICRS?MainPage=x.

For more on the relationship between VFDs and municipalities, see our “Information Packet” on fire protection, available free to members at www.memun.org. (By R.P.F.)