ARIZONA STATE SENATE
Phoenix, Arizona
state employees; salaries
Purpose
Appropriates $188.8 million
in total funds in FY 2001-2002 and $379.8 million in total funds in FY
2002-2003 for increases in state employee pay.
Background
The Joint Legislative Study
Committee on State Employee Compensation was created in 1997 to study the
various state personnel systems, state employee compensation and related
issues. In addition, the Committee is
required to submit recommendations on a long-term strategy for addressing state
employee compensation. Laws 1998,
Chapter 292 established the legislative intent that state employee compensation
be within five percent of market compensation, including salary and benefits,
by the end of FY 2002-2003.
In its 2000 report, the
Committee accepted recommendations of the various personnel systems to bring
the compensation of their respective employees to within five percent of
market. This legislation appropriates
the approximate amounts recommended by the Committee.
This legislation
appropriates $188.8 million in FY 2001-2002 and $379.8 million in FY 2002-2003
from a variety of funds to be allocated in amounts sufficient for pay
adjustments to the various personnel systems.
Of these amounts, $156 million and $312.9 million are from the state
general fund in FY 2001-2002 and FY 2002-2003 respectively. Fiscal impacts to specific other funds are
unknown at this time.
Provisions
1. Appropriates $188,800,000 in FY 2001-2002 ($156,000,000 state general fund and $32,800,000 other funds) and $379,800,000 in FY 2002-2003 ($312,900,000 general fund and $66,900,000 other funds) for increases in state employee pay.
2. Allows other appropriated funds to be allocated from listed funds.
3. Includes personal services and employee related expenditures for state officers and employees in accordance with the department’s or agency’s compensation plan.
4. Requires the Joint Legislative Budget Committee (JLBC) staff to determine, and the Arizona Department of Administration (ADOA) to allocate, an amount sufficient for pay adjustments that increase the agency’s or department’s total eligible personal services base on the following percentages:
|
Entity |
FY 2001-2002 |
FY 2002-2003 |
|
Universities |
7.8 percent |
7.8 percent |
|
Department of Public Safety |
5.4 percent |
5.4 percent |
|
Arizona State Schools for the Deaf and Blind |
4.25 percent |
4.25 percent |
|
Judiciary |
19 percent |
0 percent |
|
All other agencies |
7.1 percent, plus 3.5 percent merit |
7.1 percent, plus 3.5 percent merit |
5. Prohibits an individual merit pay adjustment from exceeding twice the percentage of the merit pay percent.
6. Provides a legislative intent that the guidelines established by each personnel system for distribution of the merit pay adjustments must ensure that eligible employees who are performing satisfactorily must receive merit adjustments.
7. Requires the JLBC staff to determine and the ADOA to allocate, adjustments, as necessary, in total expenditure authority to allow implementation of salary adjustments of comparable amounts.
8. Disqualifies, from the salary adjustments, board and commission members who are paid on a per diem basis and agency heads who are appointed for a fixed term of office.
9. Provides for a general effective date.
Prepared by Senate Staff
January 31, 2001