Budget panel advances State Fire Marshal funding, adds one-time wildfire and mobilization dollars

The Public Safety Subcommittee voted June 4 to move Senate Bill 5538 as amended to the Ways and Means Committee, endorsing the Legislative Fiscal Office's recommendation for the Department of the State Fire Marshal budget.

The LFO recommended a department total of about $93.1 million in expenditure limitation, comprised of $38,837,243 in general fund, $53,641,436 in other funds, $629,349 in federal funds, and 159 positions (158.76 FTE). The recommendation represents a 43.4% decrease from the 2023–25 legislatively approved budget and a 26.7% increase above current service level, primarily because fire‑season costs from 2023–24 are phasing out while three policy packages totaling about $19.6 million and 2 positions (1.76 FTE) are added.

Why it matters: the package includes one‑time and ongoing spending aimed at wildfire readiness and cost‑flow needs during federal reimbursement delays. The subcommittee adopted a dash‑1 amendment that formalizes the figures and moves the bill forward.

Key budget components described by the LFO and discussed in the work session include:

• A $2.5 million increase in other funds expenditure limitation funded by fire insurance premium tax (FIPT); $1.3 million of that is one‑time consultant costs to modernize the mutual aid tracking system and create an electronic reimbursement submission process; $1.2 million is ongoing for IT lifecycle, licensing and training.

• A $6 million one‑time general fund package for 2026 wildfire season staffing grants and a $10 million one‑time increase in other funds for fire costs in the State Fire Marshal mobilization fund (funded by beginning balance from FEMA reimbursements), of which about $6 million supports readiness response and $4 million supports mobilization cash flow. The LFO noted the state previously provided $18.2 million in general fund while awaiting FEMA reimbursements, and the $10 million deposit leaves $8.2 million owed back to the general fund based on prior cash flow.

• Policy adjustments across divisions including procurement reclassifications, the establishment of two permanent fire risk reduction specialist positions with $611,264 general fund (including $72,940 one‑time vehicle acquisitions), and technical adjustments reducing certain general fund special payments.

The subcommittee also approved the department's key performance measures as presented by the LFO. Representative Graeber said of one measure — the average percentage of structure saved after a declared conflagration — “That's a remarkable KPI to hit at 100%,” adding that it is a “lofty goal” for those who execute the mission in the field.

Two budget notes were adopted. The first directs the Department of State Fire Marshal to submit new key performance measures related to regulatory services, fire and life safety services, and fire and life safety education to the interim Joint Committee on Ways and Means by January 2026, including proposed tracking and targets for 2027–28. The second directs the department to fill the internal auditor position provided in House Bill 5036 (2023 session) and to report monthly to the Legislative Fiscal Office and the Department of Administrative Services Chief Financial Office on recruitment and onboarding until the position is filled.

Formal actions recorded in the work session included motions to move the LFO recommendation, to adopt the dash‑1 amendment, and to move the amended bill to Ways and Means. The transcript records no objections in committee and notes Senator Brock Smith was excused during the votes.

Discussion: members and co‑chairs emphasized the continuing fiscal uncertainty of federal reimbursements and the need for sustainable, long‑term funding for wildfire response and emergency management. Committee members praised the agency's work while warning that additional requests for supplemental funding are likely if the 2025 fire season intensifies.

Next steps: SB 5538 as amended was recommended to the full Ways and Means Committee.