Stopping 911 Fee Diversion a Slog

GOP lawmakers in Rhode Island and New York plan to move bills this year to address the problem, though Democrats have political trifectas. Possible loss of federal 911 grants is failing to move New York and New Jersey state leaders to stop diverting millions of dollars, county officials said.

“We have not had any corrective action from West Virginia despite numerous promises from Governor Justice’s Administration that its diversionary practices -- and its lame excuses -- would end,” O’Rielly wrote. “West Virginia’s practices continue to be incredibly problematic and harmful, and the Governor can expect that it will be at the top of our list when we start addressing each of the diverters and non-filers this year.” West Virginia diverted $1 million in 2018, found December’s report. Gov. Justice didn’t comment.

Rhode Island shifted $10.5 million in 2018. The state last year halved its 911 fee to 50 cents and restricted that amount for 911 purposes only, while setting up a separate “first response surcharge” of 50 cents. And 90 percent of that goes to the general fund and 10 percent into an IT investment fund.

“Splitting the funding streams to more clearly show how 9-1-1 fees are being spent and better protecting those funds certainly moves the conversation in the right direction,” said O’Rielly in an email. “It doesn’t remedy the remaining problem of diverting the second fee to the general fund, effectively creating a slush fund under the guise of a ‘public safety’ fee. We’re still working with the Commission’s public safety staff to review the new statute in Rhode Island to better understand what steps the Commission, or perhaps Congress, must take to shut down these diversionary tactics.”

Rhode Island

Rhode Island’s change didn’t please state House Republicans, who sought to restrict all the money for 911 and hope to try again this legislative session.

“I’m really disheartened,” said Rep. Jack Lyle (R). “We took a step forward last year and maybe two or three steps backwards.” Taxpayers thought the fee on their bill was going to 911 when half was going to “the black hole of the general fund,” and last year’s largely semantic change doesn’t fix the problem, he said. Gov. Gina Raimondo (D) didn’t comment.

Lyle plans to again sponsor legislation to end 911 money reshuffling this year, and expects GOP colleagues to file other 911 bills, he said. Lyle’s bill should be introduced in the first couple weeks of the session that started Tuesday, with a hearing likely in March or April, he said. Rather than restrict the full dollar to 911, Lyle wants the Rhode Island Public Utilities Commission to reassess how much money is needed for the system and based on that assess a fee that would be restricted to 911, he said.

“Carving out a program titled the first response fee with no underlying supporting direct program connected to 911 is in conflict” with a law requiring 911 funds to be used only for that purpose, said Robin Giacomini, an X-ray technician who has advocated on the issue (see 1905100006). The two-fee approach isn’t more transparent than diverting from one fee because there’s no state first-response program, she said. “It’s an imaginary term describing money that’s strictly going to the general fund to be used for any purpose they feel like.”

Rhode Island could keep the restricted 911 fee at 50 cents and likely cover 911 costs, but it should delete the separate first-response fee, Giacomini said. The state could raise the same amount of additional money for itself while avoiding conflict with federal law by increasing the state sales tax on cellphones by at most 2 percent, she said. She noted Rhode Island has a 911 commission -- currently unseated -- that would be better positioned than the PUC to say how much money the system needs. Giacomini said she’s trying to schedule a meeting with Rhode Island House Speaker Nicholas Mattiello (D), who didn’t comment.

New York

Some New York senators hope to move a bill this year to reduce but not stop moving the fees. New York shifted at least $94.3 million of about $200 million collected through the 911 surcharge in 2018. The state didn’t include any information about expenditures in its filing to the agency, so FCC staff estimated the amount. Gov. Andrew Cuomo (D) didn’t comment.

“Our bill would stop the Governor from continually sweeping the 911 fees into the general fund to help balance the budget,” emailed Matt Nelligan, chief of staff for S-2999 lead sponsor Sen. Rich Funke (R). It would require the 58.3 percent portion that may have been partly diverted to be used for 911, and the remaining 41.7 percent that was diverted to the general fund to go to law enforcement only, he said. “While it may not be 100% going to 911 it would be a vast improvement on the current structure where precious little is going to its intended purpose.”

New York isn’t transparent about how it spends 911 money, said 911 officials from three of the state’s counties. When Genesee County 911 Director Steven Sharpe filed a Freedom of Information Law (FOIL) request Sept. 30 asking how the state spent the 41.7 percent portion, the New York Division of the Budget responded Dec. 23 that it “does not possess records responsive.”

Counties maintaining 911 are getting $10 million, about 5 percent, of the $200 million collected by the state, said Sharpe. “They’re collecting this money [but] where is it going?” Counties use what “minimal” funds they receive to maintain systems, but much more is needed for upgrades, said Clinton County OES Assistant Director Kelly Donoghue, president of the New York State Coordinators Association.

Withhold Department of Transportation money from diverting states, said Steuben County 911 Director David Hopkins, in an interview with the other 911 officials. Withholding 911 grants won’t move the needle in New York, said the New York chapter president of the National Emergency Number Association. “What does the governor care if they withhold the grant money?” New York won’t give up almost $100 million it’s “shuffling off to the general fund every year if the penalty is only like $1 million,” agreed Sharpe. “Do the math.”

New Jersey

Diversion is “becoming a public safety issue” in New Jersey because “state 911 infrastructure is becoming antiquated,” said New Jersey Association of Counties (NJAC) Executive Director John Donnadio. The state diverted $92 million in 2018. Its Treasury Department didn’t comment.

NJAC plans to urge the state to stop diverting 911 funding at a Jan. 24 news conference after the association’s annual meeting in Trenton, said Donnadio. The association plans opinion articles and meetings with legislative leaders, budget committees and the governor’s office, he said.

“I don’t think these efforts will lead to any type of cease and desist from the state,” but they could lead to grants for county 911 through a bill this year, said Donnadio. “We’re going to continue to ask for the state to stop diverting 911 fees,” but he has “a hard time believing” lawmakers will, with the state budget “still in dire straits.” Threat of losing federal 911 grants “didn’t seem to move anyone” because it isn’t a large enough sum, Donnadio said.

Donnadio remains optimistic about getting grants, he said: “Something just has to give.”