DT's Budget Blog

2.26.26 - House PEMA/OSFC Budget HEaring OVerview

Written by The DT Firm | Mar 2, 2026 2:44:32 PM

House Budget Hearing Recap: PEMA & Office of the State Fire Commissioner

The House Appropriations Committee convened a comprehensive budget hearing with the Pennsylvania Emergency Management Agency (PEMA) and the Office of the State Fire Commissioner (OSFC). The discussion centered on disaster recovery funding delays, hazard mitigation investments, 9-1-1 modernization, volunteer fire recruitment and retention, EMS reimbursement challenges, urban search and rescue (USAR) funding, and preparedness planning for major 2026 national and international events.

Opening Testimony: PEMA Overview

PEMA leadership outlined the agency’s four core mission areas:

    • Preparedness
    • Response
    • Mitigation
    • Recovery

The Director emphasized that roughly 90% of Pennsylvania’s emergency management operations rely on federal funding, creating significant vulnerability when federal grant approvals are delayed or altered.

Federal Funding Backlog

PEMA reported:

    • Nearly $700 million in recovery funding tied up in federal review (primarily expenditures over $100,000 requiring DHS review).
    • $133 million in BRIC (Building Resilient Infrastructure and Communities) funding expected to be reinstated.
    • Litigation and federal administrative delays have slowed acceptance and reimbursement systems.

To address funding uncertainty, PEMA supports the Governor’s proposal to create a $100 million federal contingency/reserve fund to bridge funding gaps caused by federal delays or changes.

Mitigation Success and Disaster Recovery

PEMA highlighted strong mitigation performance during recovery from Tropical Storm Debbie:

    • Approximately 75% of public assistance projects across 13 declared counties incorporated Stafford Act §506 mitigation (“build back better” provisions).
    • That rate is roughly three times the national average.

Types of Mitigation Projects Discussed

    • Acquisition/buyout of repeatedly flooded properties (converted to green space)
    • Elevation of structures
    • Landslide and hillside stabilization (including Pittsburgh examples)
    • Levee and community-scale flood control projects

PEMA raised the possibility of creating a state hazard mitigation program to provide more flexible and efficient funding than complex federal programs.

Disaster Recovery Assistance Program (DRAP)

The state’s Disaster Recovery Assistance Program (DRAP) has been repeatedly authorized since 2023.

Key details:

    • Deployed multiple times, primarily for smaller flooding and fire incidents.
    • Typically serves 80–90 individuals per deployment.
    • Average award: approximately $5,800.
    • Covers home repairs, temporary housing, and essential personal property.

PEMA indicated it would prefer to “lead with” the state program for faster response and then seek federal reimbursement if a federal declaration follows.

Training & Municipal Emergency Management Coordination

Legislators raised concerns about newly elected local officials and emergency management coordinators (EMCs) lacking adequate training or current contact information.

PEMA responded:

    • Training is available through FEMA/NDMU online programs and county channels.
    • Counties serve as the primary conduit for training.
    • Many municipal EMC contact lists are outdated, and some EMC roles are nominal only.
    • PEMA recommended reviewing Title 35 to clarify roles, training requirements, and modernization needs.

A Joint State Government Commission task force created under Resolution 177 of 2025 is currently reviewing Title 35 and emergency management structure.

9-1-1 Funding and Modernization

PEMA’s Executive Deputy provided a detailed 9-1-1 update:

Revenue and Surcharge

    • The $1.95 statewide 9-1-1 fee generated $384 million.
    • This represents a $55 million increase over the prior $1.65 rate.
    • The current surcharge is authorized through January 31, 2029.
    • The Governor proposes extending the surcharge through June 30, 2031.
    • Legislative review and evaluation were recommended by the Legislative Budget & Finance Committee.

Acts referenced:

    • Act 34 of 2023
    • Act 45 of 2025
      • Extended Title 35, Chapter 53 provisions to 2029.

Revenue Trends

    • Wireline and VoIP subscriptions continue declining.
    • Wireless now represents roughly 80% of revenue but is saturated.
    • Future revenue growth may require expanding the surcharge base to include emerging technologies.

Modernization Needs

PEMA identified statutory updates needed to transition from legacy “Enhanced 9-1-1” language to Next Generation 9-1-1 (NG9-1-1) terminology and systems, including:

    • Liability protections for telecommunicators interacting with 988 services.
    • Carrier refund rules.
    • Emergency telecommunicator response task forces to support county centers during disasters.

Office of the State Fire Commissioner (OSFC)

Scope and Operations

OSFC serves:

    • Over 2,000 fire departments
    • Approximately 30,000 volunteers
    • About 10,000 career firefighters

Grants and Loans

    • Eliminated a prior loan backlog.
    • Loan applications increased 41% (2024→2025).
    • Approved over $25 million in loans.
    • Awarded $37.5 million in grants in FY 2025–26.

The grant application process has been modernized with Keystone ID integration and e-signatures.

Volunteer Fire Service Recruitment & Retention

Volunteer recruitment and retention dominated discussion.

Challenges Identified

    • Severe rural volunteer shortages due to declining population.
    • Urban/suburban recruitment struggles despite larger population bases.
    • Municipal capacity varies widely.

OSFC Initiatives

    • Four full-time recruitment/retention advisors.
    • Partnership with PHEAA for tuition and loan assistance.
    • “Academy on the Road” community risk reduction classes.
    • Proposed three-bucket entry-level training system, including:
      • Fire Ground Support Module for exterior/support roles.
      • Expanded online training through ACADIS.

The Commissioner stressed that regionalization and consolidation are tools—but must be community-driven and carefully implemented.

OSFC also plans to conduct a research/survey initiative to quantify recruitment barriers statewide.

EMS Funding and Reimbursement Crisis

Multiple legislators raised urgent concerns about EMS:

    • Slow reimbursements.
    • Providers not receiving full invoiced amounts.
    • Agencies suspending service.
    • Reference to Department of Health audit findings (a legislator cited approximately “68% unaccounted for”).

OSFC clarified that EMS financial administration is under the Department of Health, but:

    • A permanent, structural funding solution is needed.
    • Temporary grants are insufficient.
    • OSFC is willing to participate in legislative discussions with DOH and the Insurance Department.

Members emphasized that fire companies are increasingly filling ambulance service gaps without appropriate reimbursement structures.

Urban Search & Rescue (USAR) Funding

Legislators pressed concerns over a proposed $6 million line item reduction affecting Western Pennsylvania USAR.

PEMA clarified:

    • Two recent $6 million allocations (total $12 million).
    • Sponsoring agency agreement recently received from the City of Pittsburgh.
    • First $6 million grant agreement ready for execution.
    • Work underway to execute the second $6 million allocation.
    • A JSGC study under Act 113 of 2024 produced future funding recommendations.

Members requested continued updates on execution timing.

Municipal Capital Grants & Fireworks Tax Revenue

OSFC described:

    • Municipal fire capital grants (partially funded through fireworks tax revenue).
    • Oversubscription: for example, $450,000 available vs. over $8 million in requests in one program.
    • Some statutory eligibility limits exclude private nonprofit volunteer companies incorporated separately from municipalities.

The Commissioner acknowledged these structural constraints and encouraged legislative review.

Data Reporting & Software Rollout

OSFC transitioned to new fire incident reporting software due to federal reporting changes.

    • Initial rollout faced communication problems.
    • Vendor sunset its product, necessitating replacement.
    • User feedback improved once onboarding was completed.
    • Statewide dashboard development is underway.

Data Centers & Specialty Hazards

Legislators raised concerns about data center fire risks.

OSFC response:

    • Data center fires are highly specialized, high-loss incidents.
    • Local departments should secure scenes and coordinate with facility safety and code officials.
    • Pennsylvania has not experienced major data center fire losses.
    • Lithium-ion battery training materials will be released in 2026.

Major 2026 Event Preparedness

PEMA described multi-year planning for:

    • FIFA 2026
    • America 250
    • MLB All-Star Game
    • NFL Draft

Actions include:

    • Participation in local planning committees.
    • Federal grant coordination (including counter-UAS grants).
    • Development of a statewide consequence-management framework.
    • Proposal to define a “state of preparedness” in Title 35 to allow prepositioning of resources without requiring a disaster proclamation.

Federal Funding Vulnerability

PEMA reiterated:

    • Heavy reliance on federal funding.
    • Ongoing litigation and administrative delays.
    • Need for state-level contingency solutions.

Issues Not Resolved

No votes were taken, and several issues remain open:

    • Final action on the proposed $100 million federal reserve fund.
    • Proposed $30 million supplemental competitive fire grants.
    • Extension of the 9-1-1 surcharge beyond 2029.
    • Structural EMS reimbursement reform.
    • Specific Title 35 modernization proposals.
    • Final execution timing for USAR funding.

Conclusion

The PEMA and OSFC budget hearing presented a candid discussion of emergency preparedness strengths and operational gaps across the Commonwealth.

The agencies demonstrated measurable accomplishments—particularly in mitigation uptake, grant modernization, and recruitment initiatives—but lawmakers repeatedly underscored systemic vulnerabilities:

    • Federal funding delays.
    • Volunteer recruitment shortages.
    • EMS reimbursement breakdowns.
    • Capital funding oversubscription.
    • Municipal capacity challenges.

Both PEMA and OSFC committed to continued collaboration with the General Assembly on Title 35 modernization, EMS financing solutions, USAR funding execution, and preparedness planning for major 2026 events.