For example, the
Elk Grove district in rural Illinois put together a private fire service when they faced an imminent loss of protection by a nearby municipal fire department. They found that the private company was able to provide the service far cheaper than contracting with another local government. The private provider explains why:
“Our first-year contract was $300,000, and we were providing the same level of service the consultant said would cost $1 million,” Jensen said. “We continue to provide service as good as that of our municipal neighbors, but because we are private, we can operate more efficiently. We save 30 to 40 percent over what a similar municipal department would cost to operate.”
The savings come mainly in personnel. The fire district has 14 full-time firefighters and 28 paid-on-call firefighters, all of whom are privately employed. None is a union member.
“We don’t pay the insane salaries that our municipal neighbors pay,” Jensen said. “Our benefits are more in line with traditional industry. We are non-union, which gives us a lot more flexibility in dealing with our employees. Salaries and benefits are the big savings, but we [also] have a shop where we can rebuild and refurbish fire apparatus for our own use.
“We save money in purchasing almost anything a fire department would use, just by shopping around. We’re very cost-conscious. We watch every penny we spend,” Jensen added.
Many more cities would probably follow this road if it were not for the strong union opposition. Privatizing fire departments is not a high priority for many people, because the cost of public fire service is not a large portion of each year’s taxes paid. However, those who have studied it have found that—just as Elk Grove saved through private sector provision—
private fire services are cheaper and more efficient.