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Texas State Expenditures by County 2010

Major Spending Categories

The tables in this report list state expenditures in major categories that parallel those used in the 2010 Annual Cash Report.

Intergovernmental Payments include grants to colleges, schools and local governments; distribution of Foundation School Program funds to local school districts; textbooks for public schools; and allocations of mixed beverage taxes to cities and counties.

Labor Costs are salaries, wages, employee benefits payments, travel expenses and fees for professional consultant services. Also included is the state’s share of retirement contributions on behalf of state employees and public school teachers.

Public Assistance includes Temporary Assistance for Needy Families (TANF), Medicaid, grants in aid, child support payments and similar state services.

Highway Construction includes purchases of highway right-of-way and the expenses of constructing the state’s roads and bridges.

Operating Expenses are supplies, maintenance, utilities, rentals, leases, printing and non-capitalized equipment.

Capital Outlay expenditures include aircraft, computer equipment, land and buildings, major improvements to state property, motor vehicles and capitalized purchases of furniture and equipment.

Miscellaneous includes all other expenditures, such as court costs, fees, interest on debt, lottery payments and payment of claims and judgments.

Overview of Changes in Major Categories of Expenditure: 2000-2010

Since 2000, Texas state government expenditures by county grew from $52.2 billion in net expenditures to $107.9 billion in 2010, up 106.8 percent. During this time, the seven major categories of expenditure grew at different rates.

Public assistance expenditures led all expenditure categories, in dollars and percentage of total net expenditures in both fiscal 2000 and 2010. Those expenditures represented $16.4 billion of $52.2 billion (31.4 percent) in fiscal 2000, jumping 177.4 percent to $45.4 billion (42.1 percent) out of a total $107.9 billion in fiscal 2010.

Medical Services and Specialties ($15.4 billion) and unemployment payments ($7.9 billion) made up the bulk of these expenditures in fiscal 2010. The second largest category was intergovernmental payments, which comprised 26.1 percent (about $28.2 billion) of total expenditures. Labor costs were the third largest category ($23 billion), followed by miscellaneous ($4.7 billion) highway construction ($3.4 billion), operating expenses ($2.6 billion) and capital outlays ($577 million).

The tables and chart below illustrate the growth in expenditures by major category between 2000 and 2010.

Comparison of Major Categories of Expenditure
Amount, Percent Change and Rank by Percent Change

Fiscal 2000 and 2010

Major Category of Expenditure	Fiscal 2000	Fiscal 2010	Percent Change FY 2000 to 2010	Rank by Percent Change FY 2000 to 2010
Intergovernmental Payments	$15,743,032,218	$28,195,490,435	79.1	3
Labor Costs	11,650,077,537	23,070,375,666	98.0	2
Public Assistance	16,371,606,627	45,407,089,305	177.4	1
Highway Construction	3,225,001,966	3,370,921,600	4.5	6
Operating Expenses	1,453,093,800	2,570,972,987	76.9	4
Capital Outlays	694,986,426	576,853,328	(17.0)	7
Miscellaneous	3,058,885,605	4,741,768,573	55.0	5
Total Net State Expenditures by County	$52,196,684,179	$107,933,471,894	106.8

Comparison of Major Categories of State Expenditures
by County as Percent of Total Net Expenditures

Fiscal 2000 and 2010

Category of Expense	Fiscal 2000	Percent of Net Expenditures Fiscal 2000	Fiscal 2010	Percent of Net Expenditures Fiscal 2010
Intergovernmental Payments	$15,743,032,218	30.2	$28,195,490,435	26.1
Labor Costs	11,650,077,537	22.3	23,070,375,666	21.4
Public Assistance	16,371,606,627	31.4	45,407,089,305	42.1
Highway Construction	3,225,001,966	6.2	3,370,921,600	3.1
Operating Expenses	1,453,093,800	2.8	2,570,972,987	2.4
Capital Outlays	694,986,426	1.3	576,853,328	0.5
Miscellaneous	3,058,885,605	5.9	4,741,768,573	4.4
Total Net Expenditures	$52,196,684,179		$107,933,471,894

Changes Affecting State Agencies

Changes from the 81st Legislature affected a number of agencies. All activities and functions shared by the Commission on State Emergency Communications (Agency 477) and the Texas Department of State Health Services (537) connected with oversight of poison control networks and regional poison control centers were transferred to the Commission on State Emergency Communications (477).

The 81st Legislature created the Texas A&M-Central Texas (770) and the Texas A&M University-San Antonio (749) in 2010 once they received certification from the Texas Higher Education Coordinating Board verifying both institutions had reached required enrollment levels. The Office of Capital Writs (215) was also established.

The Incentive and Productivity Commission (353) was abolished. The Texas Residential Construction Commission (370) was also abolished because its sunset provision was not extended. The Texas Department of Criminal Justice (696) received the functions of the Private Sector Prison Industries Oversight Authority (645) which was abolished. The Board of Professional Tax Examiners (337) and the Polygraph Examiners Board (474) were abolished and functions of both agencies were transferred to the Texas Department of Licensing and Regulation (452).

The Texas Department of Banking (451), the Credit Union Department (469), the Office of Consumer Credit Commissioner (466) and the Department of Savings and Mortgage Lending (450) became self-directed and semi-independent agencies.

The 81st Legislature renamed the Office of Rural Community Affairs (357) the Texas Department of Rural Affairs. The Texas Department of Transportation (601) transferred the Automobile Burglary and Theft Prevention Authority, Motor Vehicle Division, Registration Division and Vehicle Titles Division to the Department of Motor Vehicles (608).

The University of North Texas (UNT) established the UNT at Dallas College of Law and the University of Texas System established the UT Health Science Center-South Texas.

Adjustments to the Uniform Statewide Accounting System

Most of the data in this report comes from the Uniform Statewide Accounting System (USAS). The Comptroller’s office uses USAS, a computerized accounting system, for controlling and reporting all expenditures for Texas state government. In several instances, inconsistencies between the accounting system’s requirements and the need for an accurate report of state expenditures by county required the Comptroller’s office to adjust the distribution of state expenditures to counties.

The Comptroller’s office takes expenditure data from USAS in the form of vouchers submitted by state agencies for payment of goods and services. Vouchers, which carry a citation of the legal authority for the payment, result in state checks or warrants — either an electronic transfer or a check – to the vendor of the goods or services. Vendors may be businesses, government entities, individuals or organizations.

The distribution of most state expenditures among the counties relies upon a computerized file with the name and mailing address of each vendor. Designed to track accounting transactions, USAS does not identify the location of expenditures. A vendor’s address might not accurately indicate where the purchased goods or services were delivered.

The Comptroller’s office makes adjustments to the underlying USAS data for large expenditure categories that, if not reallocated, would misrepresent the distribution of state funds to counties. With USAS, certain major expenditures, such as state employee benefit payments or public assistance, may appear to be made only in Travis County, since it is the headquarters for most state agencies. In this report, these payments, including expenditures for insurance, retirement contributions and Social Security, are adjusted.

The Comptroller’s office reallocates unemployment compensation benefits to former state employees and insurance payments for current employees based on a percentage of state employees in each county. Employee retirement and Social Security payments are allocated by a ratio of state employee salaries by county and by agency, using USAS data. State contributions to the Teacher Retirement System are allocated to counties based on where payments to retirees from the trust fund were made.

Each year, the Comptroller’s office uses information from selected state agencies to make adjustments to the data for this report. For fiscal 2010, the Attorney General’s office provided a list of the agency’s distribution of child support payments made to recipients in and out of the state. The Department of Aging and Disability Services provided data by county for payments made for long-term care nursing facilities and hospice care; Title XX Long Term Care/Non-Medicaid Services, and Intermediate Care Facilities/Mental Retardation. The Department of Criminal Justice provided a list of vendors for each state-operated facility with amounts paid to out-of-state vendors. The Comptroller’s office adjusted the Department of State Health Services’ payments for the Special Supplemental Food Program for Women, Infants and Children using a statewide distribution of the program’s client population. Data collected from the Health and Human Services Commission (HHSC), for Medicaid clients by county, was used to adjust fee-for-service and managed care Medicaid expenditures. Payment data by county for Temporary Assistance for Needy Families was provided by HHSC to make a proportional distribution by county. The Comptroller’s office collected expenditure data on textbooks for public schools from the Texas Education Agency. The Texas Department of Transportation provided information on highway construction, maintenance and right-of-way purchases to more accurately allocate expenditures to the county in which the construction was performed. The Veterans Land Board at the Texas General Land Office provided expenditure data on counties that received housing assistance and home improvement program funds.

The Texas Workforce Commission supplied fiscal 2010 unemployment insurance benefit data by county reflecting more than $3.9 billion in federal and almost $3.4 billion in state benefits for a total of more than $7.3 billion in unemployment insurance benefit payments paid in fiscal 2010.

Each year, the Texas Workforce Commission includes federal unemployment benefits in its data by county submission to the Comptroller’s office for this report. Before July 2008, federal benefits were typically modest and included natural disaster benefits, benefits due to employees laid off due a trade agreement and benefits for federal or military employees. Since July 1, 2008 when the economy began to slump, a number of laws were passed that expanded or otherwise extended federally funded unemployment benefits. The following federal laws affecting unemployment benefits paid by the Texas Workforce Commission in fiscal 2010 included:

• P.L. 110-252 (Supplemental Appropriations Act, 2008) signed on June 30, 2008, which established the Emergency Unemployment Compensation (EUC08) Program.
• The EUC08 program was expanded on Nov. 21, 2008 by P.L. 110-449 under the Unemployment Compensation Extension Act of 2008.
• The EUC08 program was extended on Feb. 17, 2009 by P.L. 111-5 (American Recovery and Reinvestment Act) and the Federal Additional Compensation (FAC) was initiated which added $25 per week to every unemployment check. Additionally, the EB program (state/federal extended benefits) was initiated as 100 percent federally funded.
• The EUC08 program and the EB program were expanded on Nov. 6, 2009 by P.L. 111-92 (Worker, Homeownership, and Business Assistance Act of 2009).
• The EUC08 program and the EB program were extended on Dec. 19, 2009 by P.L. 111-118 (Department of Defense Appropriations Act, 2010).
• The EUC08 program and the EB program were extended on March 2, 2010 by P.L. 111-144 (Temporary Extension Act of 2010).
• The EUC08 program and the EB program were extended on April 15, 2010 P.L. 111-157 (Continuing Extension Act of 2010).
• On July 22, 2010, the EUC08 program and the EB program were further extended by P.L. 111-205 (Unemployment Compensation Extension Act of 2010).

Expenditures not allocated to counties are moved to “Expenditures Unallocable to Texas Counties.” Transactions moved to this category in fiscal 2010 include expenditures for Object Codes 7001-7048, Salaries and Wages; Object Code 7206, Service Fee Paid to the Lottery Operator (GTech in Rhode Island, a subsidiary of Lottomatica in Rome, Italy); Object Code 7209, Lottery Winnings-Installment; Object Code 7245, Financial and Accounting Services; Object Code 7253, Other Professional Services; Object Code 7299, Purchased Contracted Services; Object Code 7312, Medical Supplies; Object Code 7641, Public Assistance-Temporary Assistance for Needy Families (TANF); Object Code 7662, Vendor Drug Program; Object Code 7664, Supplementary Medical Insurance Benefits and Object 7801, Interest on Governmental and Fiduciary Long-Term Debt. Unallocable state hospital expenditures are listed under Object code 7830, Disbursement of Disproportionate Share Funds to State Hospitals; and Object Code 7832, State Hospital Payments of State Matching Disproportionate Share Funds and Upper Payment Limit Funds to the Texas Department of Health.

In some cases, smaller objects of expenditure that have not been redistributed may be reflected in the county where payment was made, not in the county where the goods or services were delivered.

The objects of expenditure that comprise each of the major spending categories are these:

INTERGOVERNMENTAL PAYMENTS
		2010 Expenditures
7383	Textbooks for Public Free Schools	$513,731,353
7601	Grants-Elementary and Secondary Schools	7,115,380,378
7602	School Apportionment-Foundation Program	16,293,092,453
7603	Grants-Junior Colleges	1,043,902,521
7604	Grants-Senior Colleges and Universities	112,317,545
7611	Payments/Grants-Cities	830,868,233
7612	Payments/Grants-Counties	982,915,179
7613	Payments/Grants-Other Political Subdivisions	631,459,580
7621	Grants-Council of Governments	285,247,128
7622	Grants-Judicial Districts	249,984,523
7683	Allocations to Cities-Mixed Beverage Tax	60,500,863
7684	Allocation to Counties-Mixed Beverage Tax	65,562,903
7688	Allocation for International Fuels Tax Agreement (IFTA )	19,527,778
TOTAL INTERGOVERNMENTAL PAYMENTS		$28,195,490,435

LABOR COSTS
		2010 Expenditures
Salaries and Wages
7001	Salaries and Wages-Line Item Exempt Positions	$104,195,207
7002	Salaries and Wages-Classified and Non-Classified Permanent Full-Time Employees	5,630,415,357
7003	Salaries and Wages-Classified and Non-Classified Permanent Part-Time Employees	49,940,433
7004	Salaries and Wages-Classified and Non-Classified Non-Permanent Full-Time Employees	25,139,300
7005	Salaries and Wages-Classified and Non-Classified Non-Permanent Part-Time Employees	5,750,872
7006	Salaries and Wages-Hourly Full-Time Employees	50,244,833
7007	Salaries and Wages-Hourly Part-Time Employees	7,060,857
7008	Higher Education Salaries-Faculty/Academic Employees	1,785,034,424
7009	Higher Education Salaries-Faculty/Academic Equivalent Employees	58,655,479
7010	Higher Education Salaries-Professional/Administrative Employees	819,988,492
7011	Higher Education Salaries-Extension-Professional/Administrative Employees	15,678,557
7014	Higher Education Salaries-Student Employees	194,881,083
7015	Higher Education Salaries-Classified Employees	1,007,094,525
7016	Salaries and Wages-Classified Employees Receiving Twice-a-Month Salary Payment	288,720,957
7017	One-Time Merit Increase	22,642,539
7018	Hardship Stations Pay	422,381
7019	Compensatory Time Pay	8,202,205
7020	Hazardous Duty Pay	51,243,562
7021	Overtime Pay	120,265,991
7022	Longevity Pay	163,201,758
7023	Lump Sum Termination Payment	53,526,060
7024	Termination Pay-Death Benefits	1,507,270
7025	Compensatory or Salary Per Diem	233,070
7028	Productivity Bonus Awards	467,439
7030	Employee Incentive Bonus	0
7031	Emoluments and Allowances	38,148,686
7035	Stipend Pay	6,389,503
7037	Incentive Award for Authorized Service to Veterans	106,118
7047	Recruitment and Retention Bonuses	2,971,463
7050	Benefit Replacement Pay	41,079,998
	TOTAL SALARIES AND WAGES	10,553,208,417
Employee Benefits
7032	Employees Retirement-State Contribution	432,955,298
7033	Employee Retirement-Other Employment Expenses	136,413
7041	Employee Insurance Payments-(Employer Contribution)	1,882,694,564
7043	F.I.C.A. Employer Matching Contribution	765,892,178
7048	Performance Rewards	100,109
7052	Unemployment Compensation Benefits-Special Fund Reimbursement	34,966,581
7061	Workers' Compensation Claims-Self Insurance Programs	3,438,713
7062	Workers' Compensation-Indemnity Payments	16,546,809
7082	Retirement/Benefits Payments-Judicial Retirement System	27,298,519
7086	Optional Retirement-State Match	159,767,848
7092	Ranger Pensions	200
7231	Workers' Compensation-Medical Services and Attorney Payments	26,727,448
7232	Workers' Compensation Self Insurance Programs-Medical Services and Attorney Payments	3,335,036
7233	Employee Benefit Payments	4,853,375,809
7917	Allocations from Fund 0001 to TRS Trust Account 0960, Retired School Employee GIP Trust 0989, and GR Account-Excess Benefit Arrangement, TRS 5031 (Dedicated Receipts)	1,908,605,204
	TOTAL EMPLOYEE BENEFITS	10,115,840,729
Travel
7101	Travel In-State-Public Transportation Fares	17,189,042
7102	Travel In-State-Mileage	66,450,753
7103	Travel-Per Diem, Non-Overnight Travel-Legislature	201,907
7104	Travel In-State-Actual Meal and Lodging Expenses-Overnight Travel	314,238
7105	Travel In-State-Incidental Expenses	6,989,898
7106	Travel In-State-Meals and Lodging	47,807,178
7107	Travel In-State-Non-Overnight Travel (Meals)	859,227
7108	Travel In-State-Actual Expense Meals-No Overnight Travel	41,663
7110	Travel In-State-Board or Commission Member Meal and Lodging Expenses	876,356
7111	Travel Out-of-State-Public Transportation Fares	5,340,178
7112	Travel Out-of-State-Mileage	405,708
7113	Travel-Per Diem, Overnight Travel-Legislature	986,053
7114	Travel Out-of-State-Actual Meal and Lodging Expenses, Overnight Travel	500,624
7115	Travel Out-of-State-Incidental Expenses	1,090,801
7116	Travel Out-of-State-Meals and Lodging Not to Exceed the Locality-Based Allowance	5,111,413
7117	Travel Out-of-State-Non-Overnight Travel (Meals)	1,018
7118	Travel Out-of-State-Actual Expense Meals-No Overnight Travel	176
7121	Travel-Foreign	943,179
7122	Travel In-State-Single-Engine Aircraft Mileage	23,300
7123	Travel Out-of-State-Single-Engine Aircraft Mileage	601
7124	Travel In-State-Twin-Engine Aircraft Mileage	32,470
7125	Travel Out-of-State-Twin-Engine Aircraft Mileage	901
7126	Travel In-State-Turbine-Powered or Other Aircraft Mileage	13,018
7127	Travel Out-of-State-Turbine-Powered or Other Aircraft Mileage	4,545
7128	Travel-Apartment/House Rental Expense	54,795
7130	Travel Out-of-State-Board or Commission Member Meal and Lodging Expenses	47,832
7131	Travel-Prospective State Employees	341,361
7134	Legislative Per Diem	9,192
7135	Travel In-State-State Hotel Occupancy Tax Expense Outside Galveston, Port Aransas and South Padre Island City Limits	47,253
7136	Travel In-State-State Hotel Occupancy Tax Expense Inside Galveston City Limits	1,326
7137	Travel In-State-State Hotel Tax Expense Inside South Padre Island City Limits	566
7138	Travel In-State-State Hotel Tax Expense Inside Port Aransas City Limits	(1,023)
	TOTAL TRAVEL	155,685,547
Professional Fees and Services
7238	Foreign Office Activities	328,627
7239	Consultant Services-Approval by Office of the Governor	8,746,135
7240	Consultant Services-Other	19,975,878
7242	Consulting Services-Information Technology (Computer)	8,469,031
7243	Educational/Training Services	20,048,699
7245	Financial and Accounting Services	173,309,286
7246	Legal Services	8,851,264
7247	Hearings Officers-Pre-approved by the State Office of Administrative Hearings	29,580
7248	Medical Services	548,566,667
7249	Veterinary Services	660,540
7252	Lecturers-Higher Education	1,765,146
7253	Other Professional Services	964,549,225
7254	Other Witness Fees	4,576,843
7255	Investment Counseling Services	18,398,595
7256	Architectural/Engineering Services	268,260,106
7257	Legal Services-Approval by the State Office of Administrative Hearings	67,234
7258	Legal Services-Other	5,625,826
7275	Information Technology Services	193,412,292
7396	TxDOT Toll Road Expense-Preliminary Engineering	0
	TOTAL PROFESSIONAL FEES AND SERVICES	2,245,640,973
TOTAL LABOR COSTS		$23,070,375,666

PUBLIC ASSISTANCE PROGRAMS
		2010 Expenditures
7214	Public Assistance Payments-Unemployment	$7,883,534,781
7215	Return of Retirement Contributions	329,923,689
7623	Grants-Community Service	2,840,544,143
7624	Grants-Individuals	3,746,372
7640	Public Assistance-Child Support Payments, Non-Title IV-D	825,090,839
7641	Public Assistance-Temporary Assistance for Needy Families (TANF)	111,090,244
7642	Public Assistance-Child Support Payments, Title IV-D	2,883,804,787
7643	Other Financial Services	86,731,203
7644	Commodity Distribution Program	323,536,081
7645	Disaster Relief Payments	1,903,309
7651	Financial Services-Discharged Convicts	3,607,550
7652	Financial Services-Rehabilitation Clients	227,759,604
7661	Medical Services-Nursing Home Programs	4,538,826,929
7662	Vendor Drug Program	2,391,934,951
7664	Supplementary Medical Insurance Benefits	926,928,010
7666	Medical Services and Specialties	15,429,676,330
7671	Grants-in-Aid (Day Care)	3,835
7672	Grants-in-Aid (Foster Care)	544,615,876
7673	Grants-in-Aid (Care for Aged, Blind and Disabled)	90,056,006
7674	Grants-in-Aid (Services for Children/Clients)	204,628,646
7676	Grants-in-Aid (Transportation)	187,940,529
7677	Family Planning Services	118,716,710
7678	Employment Social Services	89,239
7679	Grants-College/Vocational Students	175,858,011
7680	Grants-in-Aid (Food)	569,975,732
7681	Grants-Survivors	13,324,508
7829	Disburse Medicaid Incentive Transfers to State Hospitals (UPL)	67,472,460
7830	Disbursement of Disproportionate Share Funds/State Hospitals	337,695,016
7831	Disbursement of Disproportionate Share Funds/Non-State Hospitals	1,276,158,450
7832	State Hospital Payments of State Matching Disproportionate Share and Upper Payment Limit (UPL) Funds	408,195,075
7835	Disbursement Medicaid Incentive Transfers to Urban/Rural Hospitals (UPL)	2,603,720,389
TOTAL PUBLIC ASSISTANCE PAYMENTS		$45,407,089,305