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Private Equity Finds a New Source of Profit: Volunteer Fire Departments

raw_anon_1111

I’m the last person to defend PE companies. I saw first hand what they were like when I was responsible for integrating acquisitions software. But there seems to be a lot more at play. Taxpayers too cheap to fund infrastructure. The article calls out fundraising drives needed to keep equipment up and running and training.

Why are firefighters volunteers anyway instead of getting paid?

Why should any company create software that they can’t do at a profit - ie rewriting software for a new federal standard?

Every problem is downstream of people wanting government services and not wanting to pay for them.

toast0

> Why are firefighters volunteers anyway instead of getting paid?

In urban/suburban areas, you need firefighters based on number of population, more or less, which isn't too bad to pay for, more people means a little bit from everyone adds up.

For rural areas, you need figherfighters based on area. If you had the right per capita fire equipment and personnel, they'd be spread so thin they may as well not exist. Volunteerism at least gets you affordable personnel, but you still need to fundraise for equipment and operational expenses.

Edit: also, the call volume is very low. Your properly staffed fire department would be nearly always idle. With volunteers on call, they can just go about thei usual things, and if a call comes in, they can respond from where they are.

kevin_thibedeau

> the call volume is very low

I lived near a volunteer station in a New Jersey town where it is routine to use a siren (same as used for tornadoes in other parts of the country) to alert the volunteers to check in. It went off frequently every day.

Interesco

I can't speak for the department near you, but in many departments, particularly towns/more rural areas, the fire department/fire station responds to both medical and fire calls. It very well may be the majority of responses were medical in nature. For example, 70% of NYFD call volume is medical [1].

[1]: https://www.firerescue1.com/fdny/should-nyc-split-ems-from-f...

raw_anon_1111

I’ve got an idea:

Every city and county belongs to a state with a broader tax base. Every state is a part of the richest country in the world. I’m sure you see where I’m getting at here.

But rural America calls that “socialism”.

giantg2

The equipment is already paid for with grants. Most people don't see a justifiable reason to have full-time services when the number of incidents is low.

LunaSea

Rich how? What's the budget deficit again?

morsch

For what it's worth, volunteer firefighters are very widespread in many -- most? -- European countries. It's not an artifact of cutthroat capitalism. In France, 83% of firefighters are volunteers. In Germany, 97%. They don't need to fundraise for equipment, though, the government pays for it, in true socialist fashion.

jrs235

Right?! I'm with you. And if rural America doesn't want socialism let them pay their far share for true fire protection costs and increased insurance premiums.

nacozarina

Volunteers getting together to serve the needs of their own community is thoroughly socialist, you are talking in circles.

yesb

> Why are firefighters volunteers anyway instead of getting paid?

Government structure and basic economics. Fire depts are mainly funded by local taxes (property, sales) so low-risk rural places can't afford a fully staffed fire dept

>Why should any company create software that they can’t do at a profit - ie rewriting software for a new federal standard?

Where was it stated that any of these acquired companies were unprofitable? It's heavily implied that these PE firms are simply maximizing profit through anti-competitive behavior

raw_anon_1111

Again why is that? Teachers are funded by local and state taxes and (did?) get federal grants.

The article mentioned that these same firefighters are having to do fundraisers for equipment maintenance

I’m honing in for the software that what they cancelled would have to be completely rewritten to comply with new federal standards.

Would everyone be happier if this was funded by YC hoping the company would be acquired by a larger company and then you see a post about “Our Amazing Journey” when it’s discontinued?

duxup

Teachers get used every school day, all day. Firefighters in areas where there are a low number of events very much not so.

NordSteve

I'm guessing you don't live in a rural area in the US.

raw_anon_1111

I grew up in South GA and my family still lives there. I got the hell out of dodge the week after graduating from college in 1996.

I said in another reply, I’m all for the state and the federal government helping rural America where their own tax base isn’t strong enough. I’m also for universal health care that would help rural areas far more than me. I wouldn’t complain about my taxes paying for it.

It’s rural America that keeps voting for local, state, and federal politicians that put them in this place.

gottorf

> It’s rural America that keeps voting for local, state, and federal politicians that put them in this place.

In my experience, not everyone's primary policy goal is to ensure that as much taxpayer money as possible gets redistributed in their favor.

Of course, this isn't to say that the problem you described (of people wanting government services but not wanting to pay for it) does not exist, but I find that to be applicable broadly, not just to rural America.

pessimizer

Their choice is between two private clubs who both cut services when in power, and are both taking huge amounts of money from private equity.

The Democrats spent the beginning of the 2016 cycle all pretending to be for universal health care (literally the only reason why Buttigieg and Harris got on stage), then spent the rest of the cycle dishonestly campaigning against it while fixing a primary. As soon as Bernie lost, health insurance and healthcare stocks had their highest stock price bump in history.

https://www.independent.co.uk/news/world/americas/us-politic...

I agree with your opinions on government funding, I just find it gross when it's used as an excuse to put the blame on the powerless. The powerless are not powerless because they choose to be, they're powerless because they are restrained by the powerful. Not only is the information they receive about the world restricted and their educations propagandistic, but if they voted for what the powerful didn't want, their vote would be ignored.

On the other hand, you've been convinced to blame the powerless for the crimes of the powerful, so I don't know how you're any less of a sucker. I guess you're wealthier than they are, so maybe you're a support system for the people doing the suckering.

edit: I had to add the last, because this type of argument is something I consistently hear from people who are paid to do the exploiting. If you're a thief, you figure out a way to blame the people you steal from.

lkbm

I do.

We have paid police, because we want law and order. We have paid dump/collection center workers, because you need a place to take trash. We have paid teachers and school staff, because we want a good education for our kids. We have paid road maintenance workers, because it's really helpful to have properly maintaind roads. We have paid librarians, because libraries are one of the core community centers in the area. We have paid animal control workers because rabies is scary. We pay for ambulance service because sometimes you need medical attention asap.

And we have volunteer fire fighters, because stopping fires, in a rural, wildfire prone area is, what? Optional? Just a side gig? Something you do just for fun?

A big part of the confusion people have is that "volunteer" fire departments often include pay. It's not a full-time job, but they at least get paid for their calls. That's not always true, though, and it's weird. It's an artifact of history that our different layers of government have divvied up basic services amongst themselves in a way that leaves fire fighting as a local concern that may or may not involve paid professionals, while the sheriff and local police will be paid professionals, the roads will be maintained, and the school will have teachers, and principals, and custodians, and people running the cafeteria, and so on.

Why do we not have "volunteer police force"? Because we treat it as a full-time position for career police officers. It's weird that this one, very critical service uses "volunteers," while most of the others are full-time, paid positions, and I find it confusing and weird, despite having grown up in rural NC, just outside a town of under a thousand, and now live at the other end of rural NC, outside the limits of a different town of under thousand people.

giantg2

"Why are firefighters volunteers anyway instead of getting paid?"

Rural areas don't have the population, revenue, and incident frequency to justify full-time services.

unethical_ban

Not mentioned in your comment is the part where the same greedy PE bought up multiple competing pieces of software in this niche.

ggfdh

> too cheap

Too poor

raw_anon_1111

The other half is stop voting for politicians on the state and federal level who explicitly try to dismantle every program that is meant to help them.

But they are more concerned with fighting “wokism” and “socialism”

cjbarber

What are the systems that need to change such that individual PE firms don't have incentive to do this?

See also: https://en.wikipedia.org/wiki/Twelve_leverage_points

Blackthorn

We could ban the firms.

mhurron

Honestly how? What law could be written that would ban PE firms and lookalike businesses that would hold up to scrutiny.

No one with a brain likes what PE does, but really, what do they do that's illegal as opposed to people finally realizing that capitalism is essentially evil?

master_crab

This isn’t really true. A lot of the laws that exist now are written to encourage private equity.

For example, you could start with fixing the privileged tax status from carry.

acdha

PE depends on favorable tax loopholes and a lot of acquisitions depend on them being able to do things like buying a company with a ton of loans which they then saddle the acquired company with or stripping assets before going bankrupt. All of that depends on arbitrary legal structures and protections which could be rebalanced to favor more productive business models.

jennyholzer2

> capitalism is essentially evil

even though nearly every post on this website makes this point, the commenters here really do not like it when you state this explicitly.

websiteapi

It's strange that this software isn't actually provided by the government to begin with. Quickly checking eso.com, most of their use cases are governmental to begin with.

what I don't get is the government collectively would save money just making it themselves.

CodingJeebus

Markets have essentially prevented this from being a reality. Government can't pay anything close to competitive with the private market, if they did it would be an easy target for "government waste", and even if they could, why take a job that could be axed during a budget cut? The people doing the firing could justify it by claiming an outside vendor would be cheaper anyway.

SoftTalker

Governments are generally very bad at software, or any kind of highly technical project that the legislators really don't understand.

I know several people in tech who are volunteer firefighters. Why don't they form an open-source project? The software described in this article doesn't sound too complex; at a couple of points I was thinking "just use a spreadsheet."

logsr

looking at ESO's homepage their main pitch is around NERIS compliance (https://www.usfa.fema.gov/nfirs/neris/) so it looks like this is a case of regulatory capture forcing fire departments to buy new software. An obvious solution here is that any government mandated information system must come with an open source implementation that guarantees compliance.

ahupp

Do they need software? Presumably the volunteer firefighters 30 years ago didn’t have this and did fine. Plenty of volunteer organizations are built on Airtable or some spreadsheets.

anotherhue

Stallman was right. Thankfully this seems like it should be relatively easy to replace. If anyone knows a friendly hacker collective to point this way...

raw_anon_1111

So tell me why should I spend my time helping cities whose population are too cheap to fund necessary infrastructure? The article pointed out that firefighters are being forced to fundraise just to get their physical equipment fixed.

These same “rural departments” are in areas that claim to hate “big government” and are anti tax and aren’t willing to fund essential services and vote for national politicians who are defunding programs that could help them.

Yes I would be all in favor of my federal tax dollars being redirected to rural areas whose taxpayers can’t fund firefighters so they don’t have to fundraise to buy equipment.

scheme271

This isn't cities, these are fire departments in rural counties that may have a few thousand people living in it at most.

raw_anon_1111

And then we should be helping them on the state and federal level. I have replied a couple of times here that I have no problem with my tax dollars going to help them.

Unfortunately, they overwhelmingly vote for politicians that believe just the opposite on the state and federal level.

appreciatorBus

If you voluntarily choose to live at such low densities that the cost of fire protection per person is too high to pay, I struggle to understand why that is a public or government problem. Either accept that you’re preferred density is difficult and uneconomical to service and you’ll have to pay a lot in tax or private fees or whatever, or go without.

On the other hand, if you involuntarily live at low densities because of gatekeepers in the city who have prevented housing from being built for the last dozen decades or so, then we should fix that so that anyone who wants to live in a city with excellent and cheap fire protection can do so.

Importantly, neither of these have anything to do with capitalism or private equity.

insane_dreamer

> So tell me why should I spend my time helping cities whose population are too cheap to fund necessary infrastructure?

Why should anyone spend their time doing open source projects that might be adopted by organizations who can't afford it.

> Yes I would be all in favor of my federal tax dollars being redirected to rural areas whose taxpayers can’t fund firefighters so they don’t have to fundraise to buy equipment.

Absolutely, me too. But in the meantime, until you/we are able to convince the government to redirect your tax dollars, this is something that is in your/our capabilities to do something about.

raw_anon_1111

The vast majority of the value that accrues from open source work isn’t organizations that are using it for free. It’s corporations.

> Absolutely, me too. But in the meantime, until you/we are able to convince the government to redirect your tax dollars, this is something that is in your/our capabilities to do something about.

And those communities are not only voting for, they are cheering on politicians who are defunding the departments who can help them the most.

_DeadFred_

My county is the size of Rhode Island and is covered in forest. We have huge wildfires all the time. We also established our own tax funded ambulance district and are willing to tax ourselves when needed even though we are a very Red area. We have volunteer firefighters, just like red state France (78% of their firefighters are volunteer), just like red state all their funding goes to the military Germany.

raw_anon_1111

And this is the way it should be - not having bake sales like the article mentioned.

unethical_ban

Tell me why you should spend time on a kernel, or a driver, or a blog generator, or anything else.

Your point "states and federal government should pay for this" is a valid opinion, but it is muddled with your attitude that anyone offering to write open source software to support emergency services is a fool.

raw_anon_1111

Well, the overwhelming percentage of open source contributors to Linux are from corporations. I bet you will see the same for most popular open source projects

logsr

despicable attitude completely detached from reality. volunteer fire fighting services provide critical public services across broad sparsely populated areas of the United States and those volunteer services benefit everyone by preventing wild fires that threaten everyone. this kind of PE activity is parasitic and directly threatens lives and property by diminishing emergency response capacity. bad business to be in. it will get shut down very quickly.

raw_anon_1111

My attitude is “despicable” by my saying “take my federal and state tax dollars and help communities so they can pay for firefighters and equipment”?

hypeatei

Why wasn't this software open source from the get-go? The writing seems to indicate that it was initially developed with altruistic intentions, but I don't see that at all. If the original developers wanted fire departments to have an affordable, lasting solution then proprietary software and VC funding seem like the wrong direction.

xeonmc

Are the PE firms by any chance involved with someone by the name of Count Olaf?

chkaloon

I'm always suspicious of articles like this. Having been part of a company that was the target of a few NYT articles, there is always more to the story. And parts that are just flat out wrong, but not being an expert or in the industry you just need to take their word for it and believe their anecdata.

insane_dreamer

This is the type of need that open-source software exists to fill.

Why doesn't anyone start an open-source project that all fire departments can adopt? Yes, you still might need some paid support, but it wouldn't be anything close to what the PE vultures are charging.

OutOfHere

Obviously the problem is relying on commercial software in the first place. The software in question needs to be open source. It needs to be developed and managed by multiple fire departments for everyone's use.

MangoToupe

We're just a couple steps away from reanimating Crassus at this point—if one interest controls both this sort of software and a REIT.... I suppose you might argue he's already achieved immortality as "capital", but that feels a little bland of an observation.

Anyway, https://archive.is/p7B8l

renewiltord

Fire Departments are the number one rent-seekers in the US so this is more like a cockroach being parasitized by a fungus. FARS regulations, in particular, are obvious crony capitalism. Elevator standards are less so, but still suspicious.