Fiscal Note
BILL # HB 2386 TITLE: pay parity; law enforcement; benchmarks
SPONSOR: Marshall STATUS: As Introduced
PREPARED BY: Jordan Johnston
Description
The bill would make the Parity Compensation Fund, administered by the Department of Public Safety (DPS), a non-
appropriated fund. The bill would also require DPS to establish annual benchmarks for department law enforcement
compensation and to consider those benchmarks when determining expenditures from the Parity Compensation Fund.
The bill further requires that the benchmark information be included in the annual state personnel report.
Estimated Impact
Based on input from DPS, we estimate the bill would have a minimal General Fund fiscal impact. DPS is not required to
use the benchmarks in setting compensation and the benchmarks only apply to Parity Compensation Fund expenditures.
The salaries of DPS Troopers, for example, are mostly paid from the General Fund.
The bill requires that the benchmarks be based on the total compensation offered by the 3 largest county or municipal
peer law enforcement agencies in the state. For reference, according to the 2024 DPS Personnel Report, the DPS starting
base salary for state troopers is currently $65,400. In comparison, the 3 highest Arizona law enforcement agency starting
base salaries for officers are Phoenix PD ($74,400), Tempe PD ($74,100), and Paradise Valley PD ($72,500).
Analysis
The Parity Compensation Fund receives 1.51% of the portion of vehicle license tax revenues that would otherwise be
deposited in the State Highway Fund. In FY 2024, the fund received revenues of $4.2 million. Revenues in the fund are to
be used to fund salary and benefit adjustments for DPS law enforcement personnel. In FY 2024, DPS reported
expenditures of $3.0 million, all which was for salary and benefits.
The bill establishes benchmarks within the fund for the department to consider when expending monies from the fund.
These benchmarks shall be based on the average "total compensation" for each comparable law enforcement rank
relative to the 3 largest local law enforcement agencies in the state. Total compensation includes base salary, educational
incentive pay, physical performance pay, longevity pay, and retirement contributions. The bill requires the new
benchmark information to be included in the annual state personnel report.
The department believes that they would be responsible for tracking and reporting the benchmarks in the annual DPS
personnel report. They do not estimate that the new reporting requirements would generate additional costs to the
agency.
Local Government Impact
None
2/7/25