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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

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:

INTERGOVERNMENTAL PAYMENTS
		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
TOTAL INTERGOVERNMENTAL PAYMENTS		$29,542,501,264

LABOR COSTS
		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
	TOTAL SALARIES AND WAGES	10,468,815,676
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
	TOTAL EMPLOYEE BENEFITS	10,523,821,886
Travel
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 PROFESSIONAL FEES AND SERVICES	2,334,156,714
TOTAL LABOR COSTS		$23,475,733,838

PUBLIC ASSISTANCE PROGRAMS
		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
TOTAL PUBLIC ASSISTANCE PAYMENTS		$46,381,754,724