How State Aid Works
The funding mechanism that supports Pennsylvania's volunteer firefighters.
Where the Money Comes From
Pennsylvania levies a 2% tax on premiums for fire insurance policies written by companies not incorporated in the Commonwealth — known as “foreign fire insurance premiums.” This dedicated tax creates a direct connection between fire protection and firefighter support: the insurance industry that benefits from fire protection helps fund the volunteers who provide it.
How It’s Distributed
State aid flows through a defined path:
- The Commonwealth collects the 2% foreign fire insurance premium tax
- Revenue is allocated to municipalities based on a formula considering population and assessed property value
- Municipalities receive their allocation from the state
- Municipalities pass the funds to their local relief association(s)
- Relief associations use funds only for authorized purposes under Act 84
- The PA Auditor General audits compliance periodically
This system ensures that state aid reaches the local level where it can directly benefit volunteer firefighters, while maintaining accountability through state oversight at every step.
Authorized Expenditures
Under 35 Pa.C.S. § 7416(f), relief association funds may be used for specific purposes:
| Category | Examples |
|---|---|
| Workers’ compensation & insurance | Coverage for active volunteer firefighters |
| Protective equipment | Turnout gear, SCBA, helmets, boots |
| Training & education | Fire academy tuition, certification courses |
| Member benefits | Injury assistance, lost income support |
| Death & survivor benefits | Benefits for families of fallen firefighters |
| Physical examinations | Annual firefighter physicals |
| Equipment maintenance | Repair and upkeep of protective equipment |
All expenditures must be documented in meeting minutes with a recorded vote and are subject to audit by the Pennsylvania Auditor General.
What State Aid Cannot Fund
State aid funds are restricted to firefighter-benefit purposes. They may NOT be used for:
- Building construction, renovation, or maintenance
- Rent, utilities, or facility operating costs
- Social events, banquets, or entertainment
- Non-firefighter purposes or general municipal expenses
- Personal loans to members
- Political contributions or lobbying
Misuse of state aid can result in the loss of future funding and potential legal consequences.
Accountability & Oversight
Every relief association that receives state aid is subject to periodic audit by the Pennsylvania Auditor General. Audits examine:
- Financial records and bank statements
- Meeting minutes and vote documentation
- Expenditure authorization and receipts
- Bylaws compliance
- Membership rolls and eligibility
Audit reports are public record and available through the Pennsylvania Auditor General’s office at paauditor.gov.
Baldwin Borough State Aid History
The following table shows actual FRA (Volunteer Fire Relief Association) allocations to Baldwin Borough as published by the Pennsylvania Auditor General.
| Year | FRA Allocation |
|---|---|
| 2025 | $120,750 |
| 2024 | $112,448 |
| 2023 | $110,716 |
| 2022 | $109,830 |
| 2021 | $84,769 |
| 2020 | $94,857 |
| 2019 | $93,607 |
| 2018 | $86,291 |
| 2017 | $94,281 |
| 2016 | $103,181 |
| 2015 | $103,947 |
| 2014 | $101,778 |
| 2013 | $107,398 |
| 2012 | $94,824 |
| 2011 | $167,427 |
| 2010 | $110,861 |
| 2009 | $98,494 |
| 2008 | $111,852 |
| 2007 | $109,359 |
| 2006 | $111,460 |
| 2005 | $111,767 |
Source: PA Auditor General, Allegheny County Allocation Reports (paauditor.gov). Amounts rounded to the nearest dollar.