The funeral costs are actually paid for from an insurance fund. The premiums foe that insurance are paid by the police association(s), which represent officers. The officers who attend the funeral do so, for the most part, on time off such as vacation or rest days.
Tax payers do not contribute to those associations; police officers do with each and every paycheck.
Policemen are paid higher than other normal people --- this is because of high risk they will have during their work. Just like Dr. and nurses are paid high because they are taking more risk to be sick than normal people. Don't know why so many people got such a big suprised when policemen die during their work. Will there be big ceremony if Dr. or nurse or other people who taking high risk and die during their work?