OLR Report 2014-R-0147 answers the question: How does the cost of operating a volunteer fire department compare with that of operating a paid fire department?
We were unable to locate any current study on the relative cost of operating various types of fire departments. But a widely cited 1992 study by Brudney and Duncombe concluded that if annual costs per volunteer firefighter are (1) $835 or less, volunteer fire departments are least costly; (2) between $835 and $1,500, combination departments (those using a mix of paid and volunteer firefighters) are least costly; and (3) more than $1,500, career (also called paid or professional) departments are least costly.
The research and anecdotal evidence suggest that volunteer and career departments differ primarily in the pay, recruitment, training, and administrative costs. But the cost difference may be attributed to other factors as well. Another widely cited 2001 study concluded that volunteer departments cost less to operate than career departments where less fire protection is demanded. The study authors concluded that volunteer fire departments are likely to cost less than career departments where (1) longer response times, fewer emergency services, and lower insurance ratings are acceptable to the community; (2) the firefighting environment is less difficult; and (3) volunteers are more readily available. According to the study, as more fire protection is demanded, the relative cost of volunteer protection rises relative to professional protection.
A Mansfield, Connecticut, study that compared the costs of operating different types of fire departments in 11 Connecticut towns generally found that volunteer departments cost less to operate than paid departments, but we believe the sample was too small to be conclusive.
In February 2014, OLR surveyed Connecticut fire department chiefs statewide to determine how much it costs them to operate their fire departments. Appendix 2 presents the data on the 12 towns that responded to the survey. We include the data for information purposes, but because of the small number of respondents, we have not drawn any conclusions from the responses.
For more information, read the full report.
