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

Major Categories of Expense as Percent of Total Net Expenditures

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:

  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

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
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
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 LABOR COSTS $23,070,375,666
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