A. The joint legislative study committee on state employee
compensation is established consisting of the following
1. Three members of the house of representatives who are appointed by
the speaker of the house of representatives. No more than two of these
members shall be from the same political party.
2. Three members of the senate who are appointed by the president of
the senate. No more than two of these members shall be from the same
political party.
3. Three members who are experts on employee compensation. Of these members, two shall be appointed by the governor and one by the speaker of the house of representatives.
4.
5. One member from the university personnel system who is appointed by the executive director of the board of regents.
6. Three members who are state agency directors, deputy directors
B. The committee shall study
C.
D. Members of the committee are not eligible to receive compensation but are eligible to receive reimbursement for expenses pursuant to title 38, chapter 4, article 2.
1. REVIEW THE PERSONNEL CLASSIFICATION SYSTEM AND REPORT TO THE
COMMITTEE ON POTENTIAL CHANGES TO THE SYSTEM. IN ITS REVIEW, THE DEPARTMENT
SHALL CONSIDER AT LEAST THE FOLLOWING:
(a)
(b)
(c)
2. EXAMINE AND REPORT TO THE COMMITTEE ON THE POSSIBILITY OF PLACING
ON THE APPLICATION FOR EMPLOYMENT A QUESTION REGARDING WHETHER THE APPLICANT
HAS EVER BEEN DISMISSED FROM STATE EMPLOYMENT FOR CAUSE PURSUANT TO SECTION
41-770, ARIZONA REVISED STATUTES.
F. ON OR BEFORE OCTOBER 31, 1998, THE DEPARTMENT OF ADMINISTRATION
SHALL:
1. REPORT TO THE COMMITTEE ON THE IMPLEMENTATION OF TRAINING FOR
MANAGERS AND SUPERVISORS PURSUANT TO SECTION 41-763, ARIZONA REVISED STATUTES.
2. STUDY AND REPORT TO THE COMMITTEE ON THE IMPLEMENTATION MEASURES
NECESSARY TO CENTRALIZE HUMAN RESOURCES POLICIES WITHIN THE DEPARTMENT AND
TO DECENTRALIZE HUMAN RESOURCES OPERATIONAL FUNCTIONS.
3. AT THE DIRECTION OF THE COMMITTEE, CONDUCT A SURVEY TO EXAMINE
STATE EMPLOYEE PERCEPTIONS REGARDING BENEFITS AND REPORT THE RESULTS OF THE
SURVEY TO THE COMMITTEE.
4. STUDY AND REPORT TO THE COMMITTEE ON THE CURRENT COMPARABILITY OF
STATE EMPLOYEE BENEFITS TO THOSE PROVIDED BY OTHER PUBLIC AND PRIVATE SECTOR
EMPLOYERS. THE STUDY SHALL INCLUDE A RANGE OF EMPLOYER TYPES AND SIZES THAT
ARE REPRESENTATIVE OF THE STATE LABOR MARKET.
5. REPORT TO THE COMMITTEE ON THE DEPARTMENT'S PROGRESS IN PURCHASING
AND INSTALLING A COMPREHENSIVE COMPENSATION SOFTWARE PACKAGE FOR ONGOING DATA
COLLECTION, ANALYSIS AND AD HOC REPORTING REQUIREMENTS RELATING TO STATE
EMPLOYEE COMPENSATION.
6. EXAMINE AND REPORT TO THE COMMITTEE ON A NEW APPRAISAL FORM FOR
MANAGERS AND SUPERVISORS.
Sec. 2. Laws 1997, first special session, chapter 1, section 107 is amended to read:
Sec. 107.
1997-98 1998-99
General salary adjustments $ 47,645,000
Fund sources:
State general fund $ 40,500,000
Other appropriated funds 7,145,000
Classification salary adjustments $ 4,115,000
Fund sources:
State general fund $ 3,500,000
Other appropriated funds 615,000
The other appropriated funds may be allocated from the following funds:
abandoned vehicle fund, board of accountancy fund, office of administrative
hearings fund, air permits administration fund, air quality fund, antitrust
revolving fund, board of appraisal fund, Arizona arts trust fund, state
aviation fund, auto theft authority fund, bond fund, board of barber
examiners fund, board of behavioral health examiners fund, capital outlay
stabilization fund, state charitable, penal and reformatories land fund,
child abuse prevention fund, child fatality review team fund, child support
enforcement administration fund, board of chiropractic examiners fund,
citrus, fruit and vegetable revolving fund, Arizona coliseum and exposition
center fund, collection enforcement revolving fund, commerce and economic
development commission fund, commercial feed fund, community college
certification fund, confidential intermediary fund, consulting and training
fund, corrections fund, board of cosmetology fund, criminal justice
enhancement fund, county fair racing fund, court appointed special advocate fund, dealer enforcement fund, board of dental examiners fund, board of
dispensing opticians fund, drug and gang prevention resource center fund, egg
inspection fund, emergency medical services operating fund, emissions
inspection fund, environmental special plate fund, estate and unclaimed
property fund, fertilizer materials fund, full employment demonstration
project fund, board of funeral directors and embalmers fund, game and fish
fund, game, non-game, fish and endangered species fund, hazardous waste fund,
state highway fund, Arizona highway patrol fund, board of homeopathic medical
examiners fund, housing trust fund, industrial commission administrative
fund, information technology fund, interagency service agreements fund,
investment management and regulatory enforcement fund, judicial collection
enhancement fund, juvenile education fund, state lottery fund, state medical
examiners board fund, the miners' hospital for disabled miners land fund,
motor vehicle pool revolving fund, board of naturopathic physicians examiners
fund, nursing board fund, board of nursing care institution administrators
licensing and adult care home managers' certification fund, occupational
therapy board fund, oil overcharge fund, board of optometry fund, board of
osteopathic examiners fund, state parks enhancement fund, permanent
tribal-state compact fund, personnel division fund, pesticide fund, board of
pharmacy fund, board of physical therapy examiners fund, Arizona protected
native plant fund, board of podiatry examiners fund, commission of
postsecondary education fund, board of private postsecondary education fund,
board of psychologist examiners fund, public access fund, public assistance
collections fund, radiologic technologist certification fund, registrar of
contractors fund, residential utility consumer office fund, board of
respiratory care examiners fund, state retirement system administration
account, permanent risk management revolving fund, safety enforcement and
transportation infrastructure fund, securities regulatory and enforcement
fund, solid waste fee fund, special administration fund, Arizona state
hospital fund, structural pest control commission fund, structural pest
control commission inspection support fund, teacher certification fund, board
of technical registration fund, technology and telecommunications fund,
telecommunication fund for the deaf, tobacco tax and health care fund,
underground storage tank revolving fund, utility regulation revolving fund,
state veterans' conservatorship fund, state home for veterans' trust fund,
board of veterinary medical examining fund, victims' rights implementation
revolving fund, watercraft licensing fund, water quality assurance revolving
fund, water quality fee fund,
The general pay adjustments include personal services and employee
related expenditures for state officers and employees in accordance with the
department's or agency's compensation plan, except as otherwise provided by
For fiscal year 1997-1998, the joint legislative budget committee staff shall determine and the department of administration shall allocate to each agency or department an amount sufficient to increase the annual salary level of each employee by the lesser of $1,000 or two and one-half per cent effective October 1, 1997. The $1,000 limit shall apply to less than full time employees on a prorated basis.
For fiscal year 1997-1998, the joint legislative budget committee staff shall also determine and the department of administration shall allocate to each agency or department an amount projected to equal two and one-half per cent of their total eligible personal services base for the period January 1, 1998 through June 30, 1998 for merit pay adjustments. An individual merit pay adjustment shall not exceed five per cent of an employee's salary.
For fiscal year 1998-1999, the joint legislative budget committee staff
shall determine and the department of administration shall allocate to each
agency or department an amount to annualize the salary adjustments for fiscal
year 1997-1998
The joint legislative budget committee staff shall also determine and
the department of administration shall allocate adjustments, as necessary,
in total expenditure authority to allow implementation of general salary
adjustments of comparable amounts. The employees of the Arizona state
schools for the deaf and the blind, board and commission members who are paid
on a per diem basis and agency heads who are appointed for a fixed term of
office are not eligible for general salary adjustments. Employees of the
Arizona state schools for the deaf and the blind shall receive salary
adjustments pursuant to
The department of administration shall increase the salary schedule for
clerical pool employees by two and one-half per cent effective October 1,
1997, by two and one-half per cent effective January 1, 1998
The amounts appropriated for classification salary adjustments shall
be for adjustments to the salary levels of positions in certain identified
job classifications, inclusive of applicable employee related expenditures,
for the periods October 1, 1997 through June 30, 1998 and October 1, 1998
through June 30, 1999, respectively. The joint legislative budget committee
staff shall determine and the department of administration shall allocate to
each agency or department the appropriate amounts. The joint legislative
budget committee staff shall also determine and the department of
administration shall allocate adjustments, as necessary, in total expenditure
authority to allow implementation of classification salary adjustments of
appropriate amounts. On or before July 1, 1997 and
It is the intent of the legislature that the adjustments be made to job classifications that are critical to the orderly conduct of state operations and that are experiencing substantially above average turnover or have current salary levels that are substantially below comparable positions outside state service.
It is the intent of the legislature that an adjustment be applied to all positions within a single job classification. If the recommendation includes an adjustment that will not be applied to all positions within a single job classification, these agencies shall separately list all of the positions within the job classification, by agency or department, and the rationale for excluding some positions from the adjustment.
On or before November 1, 1997 and November 1, 1998, respectively, these agencies shall report to the staff director of the joint legislative budget committee the suballocation of the adjustment amounts, by program and/or cost center, line item and fund name. Any unallocated balance shall revert to the fund from which it was appropriated on February 1, 1998 and February 1, 1999, respectively, unless the joint legislative budget committee determines additional classification salary adjustments are necessary.
Of the amounts determined by the joint legislative budget committee staff and allocated by the department of administration for fiscal year 1997-1998 for merit pay adjustments, the sum of $4,000,000 is deposited into the faculty teaching incentive program fund of the Arizona board of regents and is exempt from the provisions of section 35-190, Arizona Revised Statutes, relating to lapsing of appropriations.
The teaching incentive bonuses shall be awarded in January of 1998 to
qualifying faculty of each university, based on the tenth week faculty
teaching audit during the fall semester of 1997. Bonuses may be incorporated
into existing base salaries of qualifying faculty. By June 1
The teaching incentive bonuses shall be awarded at a rate between two and five per cent of academic year base salary per semester for qualifying faculty who teach a minimum of six credit hours in regular classes per semester. The board of regents shall design the salary awards based on the above criteria.
At the college of medicine of the university of Arizona, faculty teaching effort in regular classes and clinical training may be counted toward the teaching load requirement needed to qualify for bonuses, with the total amount of all awards not to exceed $250,000 per semester.
Sec. 3.
A. The sum of $100,000 is appropriated in fiscal year 1998-1999 from the state general fund to the special merit award fund established by section 38-613, Arizona Revised Statutes, for the purpose of making merit awards or purchasing recognition materials.
B. The sum of $2,162,900 is appropriated from the state general fund to the department of administration for the purpose of purchasing and installing a comprehensive compensation software package to enable the ongoing data collection, analysis and ad hoc reporting requirements relating to state employee compensation. Notwithstanding section 35-190, Arizona Revised Statutes, the appropriation made in this subsection does not lapse until the purpose for which the appropriation is made is accomplished or abandoned. The department shall report to the joint legislative budget committee and the joint committee on state employee compensation on or before October 31 annually through October 31, 2003 regarding the department's progress in purchasing and installing the software package. Monies appropriated pursuant to this subsection shall not exceed $642,400 in fiscal year 1998-1999, $457,200 in fiscal year 1999-2000, $464,500 in fiscal year 2000-2001, $289,600 in fiscal year 2001-2002 and $309,200 in fiscal year 2002-2003.
C. The following sums are appropriated for the following fiscal years for the purposes specified:
1999-2000 2000-2001 2001-2002 2002-2003
Merit salary adjustments $ 23,400,000 $ 26,000,000 $ 28,600,000 $ 31,200,000
Fund sources:
State general fund $ 18,000,000 $ 20,000,000 $ 22,000,000 $ 24,000,000
Other appropriated funds 5,400,000 6,000,000 6,600,000 7,200,000
Classification salary adjustments $ 59,800,000 $ 57,200,000 $ 54,600,000 $ 52,000,000
Fund sources:
State general fund $ 46,000,000 $ 44,000,000 $ 42,000,000 $ 40,000,000
Other appropriated funds 13,800,000 13,200,000 12,600,000 12,000,000
The other appropriated funds may be allocated from the following funds: abandoned vehicle fund, board of accountancy fund, office of administrative hearings fund, air permits administration fund, air quality fund, antitrust revolving fund, board of appraisal fund, Arizona arts trust fund, state aviation fund, auto theft authority fund, bond fund, board of barber examiners fund, board of behavioral health examiners fund, capital outlay stabilization fund, state charitable, penal and reformatories land fund, child abuse prevention fund, child fatality review team fund, child support enforcement administration fund, board of chiropractic examiners fund, citrus, fruit and vegetable revolving fund, Arizona coliseum and exposition center fund, collection enforcement revolving fund, commerce and economic development commission fund, commercial feed fund, community college certification fund, confidential intermediary fund, consulting and training fund, corrections fund, board of cosmetology fund, criminal justice enhancement fund, county fair racing fund, court appointed special advocate fund, dealer enforcement fund, board of dental examiners fund, board of dispensing opticians fund, drug and gang prevention resource center fund, egg inspection fund, emergency medical services operating fund, emissions inspection fund, environmental special plate fund, estate and unclaimed property fund, fertilizer materials fund, full employment demonstration project fund, board of funeral directors and embalmers fund, game and fish fund, game, non-game, fish and endangered species fund, hazardous waste fund, state highway fund, Arizona highway patrol fund, board of homeopathic medical examiners fund, housing trust fund, industrial commission administrative fund, information technology fund, interagency service agreements fund, investment management and regulatory enforcement fund, judicial collection enhancement fund, juvenile education fund, state lottery fund, state medical examiners board fund, the miners' hospital for disabled miners land fund, motor vehicle pool revolving fund, board of naturopathic physicians examiners fund, nursing board fund, board of nursing care institution administrators licensing and adult care home managers' certification fund, occupational therapy board fund, oil overcharge fund, board of optometry fund, board of osteopathic examiners fund, state parks enhancement fund, permanent tribal-state compact fund, personnel division fund, pesticide fund, board of pharmacy fund, board of physical therapy examiners fund, Arizona protected native plant fund, board of podiatry examiners fund, commission of postsecondary education fund, board of private postsecondary education fund, board of psychologist examiners fund, public access fund, public assistance collections fund, radiologic technologist certification fund, registrar of contractors fund, residential utility consumer office fund, board of respiratory care examiners fund, state retirement system administration account, permanent risk management revolving fund, safety enforcement and transportation infrastructure fund, securities regulatory and enforcement fund, solid waste fee fund, special administration fund, Arizona state hospital fund, structural pest control commission fund, structural pest control commission inspection support fund, teacher certification fund, board of technical registration fund, technology and telecommunications fund, telecommunication fund for the deaf, tobacco tax and health care fund, underground storage tank revolving fund, utility regulation revolving fund, state veterans' conservatorship fund, state home for veterans' trust fund, board of veterinary medical examining fund, victims' rights implementation revolving fund, watercraft licensing fund, water quality assurance revolving fund, water quality fee fund, workers' compensation fund, cop building operating and maintenance fund, administrative expenses special employee health insurance trust fund, Arizona health care cost containment system administrative expenses health care group fund, domestic violence shelter fund, temporary assistance for needy families block grant and child care block grant fund, newborn screening program fund, community punishment program fund, defensive driving fund and equipment revolving fund.
The merit pay adjustments include personal services and employee related expenditures for state officers and employees in accordance with the department's or agency's compensation plan, except as otherwise provided by this act.
The joint legislative budget committee staff shall determine and the department of administration shall allocate to each agency or department an amount on a percentage basis for the period of July 1 through June 30 for merit pay adjustments. The total of these increases shall not exceed $23,400,000 in fiscal year 1999-2000, $26,000,000 in fiscal year 2000-2001, $28,600,000 in fiscal year 2001-2002 and $31,200,000 in fiscal year 2002-2003.
The joint legislative budget committee staff shall also determine and the department of administration shall allocate adjustments, as necessary, in total expenditure authority to allow implementation of merit salary adjustments of comparable amounts. The employees of the Arizona state schools for the deaf and the blind, board and commission members who are paid on a per diem basis and agency heads who are appointed for a fixed term of office are not eligible for merit salary adjustments.
The amounts appropriated for classification salary adjustments shall be for adjustments to the salary levels of positions in certain identified job classifications, inclusive of applicable employee related expenditures, for the period of July 1 through June 30. The joint legislative budget committee staff shall determine and the department of administration shall allocate to each agency or department the appropriate amounts. The joint legislative budget committee staff shall also determine and the department of administration shall allocate adjustments, as necessary, in total expenditure authority to allow implementation of classification salary adjustments of appropriate amounts. To receive adjustments, on or before February 1 annually, the department of administration, the Arizona board of regents, the department of public safety and the administrative office of the courts shall each report its recommendations for the job classifications for the coming fiscal year to the joint legislative budget committee for its review. The recommendations shall include the rationale for these selections, the estimated dollar amount associated with each classification salary adjustment and information concerning the job classifications selected including, but not limited to, turnover in the classification, salaries for comparable positions outside state service, vacancy rates and duration in the classification, and the availability of applicants for vacant positions in the classification.
It is the intent of the legislature that the adjustments be made to job classifications that are critical to the orderly conduct of state operations and that are experiencing substantially above average turnover or that have current salary levels that are substantially below comparable positions outside state service.
It is the intent of the legislature that an adjustment be applied to all positions within a single job classification. If the recommendation includes an adjustment that will not be applied to all positions within a single job classification, these agencies shall separately list all of the positions within the job classification, by agency or department, and the rationale for excluding some positions from the adjustment.
On or before November 1 annually, these agencies shall report to the staff director of the joint legislative budget committee the suballocation of the adjustment amounts, by program or cost center, or both, line item and fund name. Any unallocated balance reverts to the fund from which it was appropriated on February 1 annually, unless the joint legislative budget committee determines additional classification salary adjustments are necessary.
Sec. 4.
Laws 1997, first special session, chapter 3, section 10, as amended by this act, is repealed from and after December 31, 2003.
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