Texas State Expenditures by County 2011

Major Spending Categories

The tables in this report list state expenditures in major categories that parallel those used in the 2011 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: 2001-2011

Since 2001, Texas state government expenditures by county grew from $57.2 billion in net expenditures to $111.9 in 2011, up 95.4 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 2001 and 2011. Those expenditures represented $18 billion of $57.2 billion (31.5 percent) in fiscal 2001, jumping 157.1 percent to $46.4 billion (42 percent) out of a total $111.9 billion in fiscal 2011.

Medical Services and Specialties ($17.2 billion) and unemployment payments ($6.1 billion) made up the bulk of these expenditures in fiscal 2011. The second largest category was intergovernmental payments, which comprised 26.4 percent (about $29.5 billion) of total expenditures. Labor costs were the third largest category ($23.5 billion), followed by miscellaneous expenses ($5.4 billion), highway construction ($3.8 billion), operating expenses ($2.7 billion) and capital outlays ($549 million).

The tables and chart below illustrate the growth in expenditures by major category between 2001 and 2011.

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

Fiscal 2001 and 2011

Major Category of Expenditure Fiscal 2001 Fiscal 2011 Percent Change
FY 2001 to 2011
Rank by
Percent Change
FY 2001 to 2011
Intergovernmental Payments $16,762,136,441 $29,542,501,264 76.2 2
Labor Costs 13,814,350,708 23,475,733,838 69.9 4
Public Assistance 18,038,822,860 46,381,754,724 157.1 1
Highway Construction 3,203,169,243 3,774,030,686 17.8 6
Operating Expenses 1,568,811,225 2,695,034,308 71.8 3
Capital Outlays 581,341,731 549,004,105 -5.6 7
Miscellaneous 3,274,156,484 5,442,339,359 66.2 5
Total Net State Expenditures by County $57,242,788,693 $111,860,398,284 95.4

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

Fiscal 2001 and 2011

Category of Expense Fiscal 2001 Percent of
Net Expenditures
Fiscal 2001
Fiscal 2011 Percent of
Net Expenditures
Fiscal 2011
Intergovernmental Payments $16,762,136,441 29.3 $29,542,501,264 26.4
Labor Costs 13,814,350,708 24.1 23,475,733,838 21
Public Assistance 18,038,822,860 31.5 46,381,754,724 41.5
Highway Construction 3,203,169,243 5.6 3,774,030,686 3.4
Operating Expenses 1,568,811,225 2.7 2,695,034,308 2.4
Capital Outlays 581,341,731 1 549,004,105 0.5
Miscellaneous 3,274,156,484 5.7 5,442,339,359 4.9
Total Net Expenditures $57,242,788,693 $111,860,398,284

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 Office of Capital Writs (215) was also established and 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 University of Texas System established the UT Health Science Center-South Texas and the University of North Texas established UNT at Dallas College of Law.

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

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, differences 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 2011, 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 2011 unemployment insurance benefit data by county reflecting more than $3.5 billion in federal and almost $2.6 billion in state benefits for a total of more than $6.1 billion in unemployment insurance benefit payments paid in fiscal 2011.

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. In July 2008, when the economy began to contract, a number of laws were passed that expanded or otherwise extended federally funded unemployment benefits. The cumulative effect of these laws allows an unemployed Texan to receive up to 99 weeks of state and federal unemployment compensation. The following federal laws affecting unemployment benefits paid by the Texas Workforce Commission in fiscal 2011 included:

  • P.O. 110-252 (Supplemental Appropriations Act, 2008) signed on June 30, 2008, established the Emergency Unemployment Compensation (EUC08) Program.
  • The EUC08 program was extended on Feb. 17, 2009, by P.L. 111-5 (American Recovery and Reinvestment Act). Also, the EB program (state/federal extended benefits) was initiated as 100 percent federally funded.
  • The EUC08 program and the EB program were extended on April 15, 2010, by P.L. 111-157 (Continuing Extension Act of 2010).
  • The EUC08 program and the EB program were extended on Dec. 17, 2010, by an additional 13 months by P.L. 111-312 (Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010).

Expenditures not allocated to counties are moved to “Expenditures Unallocable to Texas Counties.” Transactions moved to this category in fiscal 2011 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:

  2011 Expenditures
7383 Textbooks for Public Free Schools $124,966,500
7601 Grants–Elementary and Secondary Schools 7,411,144,581
7602 School Apportionment–Foundation Program 17,674,668,169
7603 Grants–Junior Colleges 1,032,966,824
7604 Grants–Senior Colleges and Universities 164,761,881
7611 Payments/Grants–Cities 788,818,982
7612 Payments/Grants–Counties 969,301,784
7613 Payments/Grants–Other Political Subdivisions 681,396,476
7621 Grants–Council of Governments 277,086,059
7622 Grants–Judicial Districts 265,628,401
7683 Allocations to Cities–Mixed Beverage Tax 64,218,609
7684 Allocation to Counties–Mixed Beverage Tax 70,544,978
7688 Allocation for International Fuels Tax Agreement (IFTA ) 16,998,021

2011 Expenditures
Salaries and Wages
7001 Salaries and Wages–Line Item Exempt Positions $106,751,682
7002 Salaries and Wages–Classified and Non-Classified Permanent Full-Time Employees 5,665,623,624
7003 Salaries and Wages–Classified and Non-Classified Permanent Part-Time Employees 49,142,677
7004 Salaries and Wages–Classified and Non-Classified Non-Permanent Full-Time Employees 23,904,791
7005 Salaries and Wages–Classified and Non-Classified Non-Permanent Part-Time Employees 6,225,523
7006 Salaries and Wages–Hourly Full-Time Employees 46,995,844
7007 Salaries and Wages–Hourly Part-Time Employees 6,804,679
7008 Higher Education Salaries–Faculty/Academic Employees 1,826,594,831
7009 Higher Education Salaries–Faculty/Academic Equivalent Employees 49,688,378
7010 Higher Education Salaries–Professional/Administrative Employees 772,261,942
7011 Higher Education Salaries–Extension–Professional/Administrative Employees 13,926,396
7014 Higher Education Salaries–Student Employees 177,468,305
7015 Higher Education Salaries–Classified Employees 905,045,406
7016 Salaries and Wages–Classified Employees Receiving Twice-a-Month Salary Payment 298,185,082
7017 One-Time Merit Increase 25,574,497
7018 Hardship Stations Pay 376,032
7019 Compensatory Time Pay 8,962,410
7020 Hazardous Duty Pay 52,146,099
7021 Overtime Pay 119,288,705
7022 Longevity Pay 162,546,776
7023 Lump Sum Termination Payment 66,505,246
7024 Termination Pay–Death Benefits 1,600,367
7025 Compensatory or Salary Per Diem 219,938
7028 Productivity Bonus Awards 91,301
7031 Emoluments and Allowances 38,325,610
7035 Stipend Pay 6,488,743
7037 Incentive Award for Authorized Service to Veterans 106,443
7047 Recruitment and Retention Bonuses 702,462
7050 Benefit Replacement Pay 37,261,887
Employee Benefits
7032 Employees Retirement–State Contribution 448,760,614
7033 Employee Retirement–Other Employment Expenses 890,884
7041 Employee Insurance Payments–(Employer Contribution) 1,967,959,990
7043 F.I.C.A. Employer Matching Contribution 749,307,559
7052 Unemployment Compensation Benefits–Special Fund Reimbursement 30,541,525
7061 Workers’ Compensation Claims–Self Insurance Programs 2,839,988
7062 Workers’ Compensation–Indemnity Payments 16,754,785
7082 Retirement/Benefits Payments–Judicial Retirement System 26,988,020
7086 Optional Retirement–State Match 154,279,712
7231 Workers’ Compensation–Medical Services and Attorney Payments 27,915,591
7232 Workers’ Compensation Self Insurance Programs–Medical Services and Attorney Payments 2,428,790
7233 Employee Benefit Payments 5,175,437,681
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) 1,919,716,747
7101 Travel In-State–Public Transportation Fares 17,316,081
7102 Travel In-State–Mileage 61,010,113
7103 Travel–Per Diem, Non-Overnight Travel–Legislature 190,280
7104 Travel In-State–Actual Meal and Lodging Expenses–Overnight Travel 304,525
7105 Travel In-State–Incidental Expenses 7,414,955
7106 Travel In-State–Meals and Lodging 44,512,559
7107 Travel In-State–Non-Overnight Travel (Meals) 764,544
7108 Travel In-State–Actual Expense Meals–No Overnight Travel 36,127
7110 Travel In-State–Board or Commission Member Meal and Lodging Expenses 725,596
7111 Travel Out-of-State–Public Transportation Fares 4,554,283
7112 Travel Out-of-State–Mileage 356,099
7113 Travel–Per Diem, Overnight Travel–Legislature 513,120
7114 Travel Out-of-State–Actual Meal and Lodging Expenses, Overnight Travel 465,869
7115 Travel Out-of-State–Incidental Expenses 928,209
7116 Travel Out-of-State–Meals and Lodging Not to Exceed the Locality-Based Allowance 3,987,933
7117 Travel Out-of-State–Non-Overnight Travel (Meals) 305
7118 Travel Out-of-State–Actual Expense Meals–No Overnight Travel 1,126
7121 Travel–Foreign 736,859
7122 Travel In-State–Single-Engine Aircraft Mileage 34,774
7123 Travel Out-of-State–Single-Engine Aircraft Mileage 822
7124 Travel In-State–Twin-Engine Aircraft Mileage 19,497
7126 Travel In-State–Turbine-Powered or Other Aircraft Mileage 46,686
7127 Travel Out-of-State–Turbine-Powered or Other Aircraft Mileage 3,634
7128 Travel–Apartment/House Rental Expense 51,830
7130 Travel Out-of-State–Board or Commission Member Meal and Lodging Expenses 32,232
7131 Travel–Prospective State Employees 329,745
7134 Legislative Per Diem 4,639,824
7135 Travel In-State–State Hotel Occupancy Tax Expense Outside Galveston, Port Aransas and South Padre Island City Limits (35,770)
7136 Travel In-State–State Hotel Occupancy Tax Expense Inside Galveston City Limits (1,238)
7137 Travel In-State-State Hotel Tax Expense Inside South Padre Island City Limits (1,031)
7138 Travel In-State-State Hotel Tax Expense Inside Port Aransas City Limits (26)
TOTAL TRAVEL 148,939,562
Professional Fees and Services
7238 Foreign Office Activities 348,875
7239 Consultant Services–Approval by Office of the Governor 20,730,541
7240 Consultant Services–Other 20,235,140
7242 Consulting Services–Information Technology (Computer) 7,618,970
7243 Educational/Training Services 16,356,063
7245 Financial and Accounting Services 196,546,156
7246 Legal Services 25,105,754
7247 Hearings Officers–Pre-approved by the State Office of Administrative Hearings 36,598
7248 Medical Services 602,144,213
7249 Veterinary Services 604,866
7252 Lecturers–Higher Education 1,699,494
7253 Other Professional Services 935,937,460
7254 Other Witness Fees 4,401,609
7255 Investment Counseling Services 20,220,062
7256 Architectural/Engineering Services 277,425,354
7257 Legal Services–Approval by the State Office of Administrative Hearings 11,127
7258 Legal Services–Other 6,673,837
7275 Information Technology Services 199,197,907
7396 TxDOT Toll Road Expenditures-Preliminary Engineering (1,137,312)
TOTAL LABOR COSTS $23,475,733,838
2011 Expenditures
7214 Public Assistance Payments–Unemployment $6,072,541,758
7215 Return of Retirement Contributions 412,760,313
7623 Grants–Community Service Programs 3,041,351,896
7624 Grants–Individuals 21,051,626
7640 Public Assistance–Child Support Payments, Non-Title IV-D 806,769,234
7641 Public Assistance–Temporary Assistance for Needy Families (TANF) 128,990,530
7642 Public Assistance–Child Support Payments, Title IV-D 3,154,379,946
7643 Other Financial Services 77,368,588
7644 Commodity Distribution Program 344,236,085
7645 Disaster Relief Payments 1,319,410
7651 Financial Services–Discharged Convicts 3,508,875
7652 Financial Services–Rehabilitation Clients 223,066,682
7661 Medical Services–Nursing Home Programs 4,515,064,366
7662 Vendor Drug Program 2,561,948,608
7664 Supplementary Medical Insurance Benefits 934,514,481
7666 Medical Services and Specialties 17,155,439,787
7671 Grants-in-Aid (Day Care) 0
7672 Grants-in-Aid (Foster Care) 572,502,235
7673 Grants-in-Aid (Care for Aged, Blind and Disabled) 111,198,205
7674 Grants-in-Aid (Services for Children/Clients) 178,039,738
7676 Grants-in-Aid (Transportation) 206,129,178
7677 Family Planning Services 124,157,717
7678 Employment Social Services 71,411
7679 Grants–College/Vocational Students 42,595,628
7680 Grants-in-Aid (Food) 548,451,472
7681 Grants–Survivors 12,420,293
7829 Disburse Medicaid Incentive Transfers to State Hospitals (UPL) 95,994,718
7830 Disbursement of Disproportionate Share Funds/State Hospitals 327,465,667
7831 Disbursement of Disproportionate Share Funds/Non-State Hospitals 1,325,051,446
7832 State Hospital Payments of State Matching Disproportionate Share and Upper Payment Limit (UPL) Funds 427,226,511
7835 Disbursement Medicaid Incentive Transfers to Urban/Rural Hospitals (UPL) 2,956,138,321