Will Auto Insurance pay for Police runs?

Police look to program
for recovering tax dollars

by CHRIS GRAY
Observer Staff Writer

      The Romeo Police Department will attempt to recoup costs for time spent at accident scenes.
       With more than 90 percent of traffic crashes in the Romeo area caused by non-taxpaying residents, the department hopes to establish a fund recovery program this summer to restore taxpayer money spent on officers responding to motor vehicle accidents.
       Currently, Romeo residents pay a total of 12.0 general operating millage, part of which pays for basic fire and police services like criminal protection and investigation. The majority of services rendered at a motor vehicle crash, though, are outside the scope of these basic provisions.
       Last year, the Romeo Police Department responded to almost 180 motor vehicle accidents. Police Chief Greg Paduch said close to 97 percent of accidents are caused by non-taxpayers, forcing those that do pay taxes in the community to shoulder the burden of motor vehicle responses without gaining any benefits.
       "Village taxpayers pay for police patrol and enforcement of criminal activity," Paduch said. "The amount of minutes we use at a scene and writing that report takes us away from patrol duties or protecting taxpayers."
       To relieve residents and recycle funding back to the village, Paduch said the department will pursue a partnership with the Cost Recovery Corporation (CRC) based in Dayton, Ohio.
       CRC's program for police agencies has existed since 2004, though the corporation itself has served other emergency services since 1999. The program works by having officers log the time spent at accident scenes. This is collected at the end of a month, and when CRC receives the amount, it bills the at-fault driver's insurance company for that time. If a driver is uninsured, they are directly billed.
       "The money recovered goes back into the village's general fund," Paduch said.
       He said this will not cause an increase to taxes for the village, and there are no out-of-pocket costs from local residents for the program. Any fees CRC requests are billed to the insurance companies, not the police department.
       "This isn't double taxation, and taxes will not be raised because of this," he said.
       Accident victims will not see an increase in their premiums due to the implementation of the program, according to CRC's Web site. Insurance rates are controlled by the State Insurance Commissioner, who adjusts premiums based on a driver's risk factor regardless of the program.
       As of now, 56 percent of insurance companies participate in CRC's program. Paduch said there weren't any specific figures, but the money recovered from these accidents would be in the thousands.
       "It's enough to make it worthwhile," he said.
       Before any recovery can begin, the Village Council must review and approve an ordinance that would allow the program to take place. Paduch estimates a contract between the department and CRC could be signed and implemented a month after an ordinance is improved. The ordinance could be reviewed as early as the Village Council's regular May meeting.
       The village has a similar ordinance in place now, as the Bruce-Romeo Fire Department uses a different company to recover costs in the same fashion.