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 2012 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: 2002-2012

Texas state government expenditures by county rose from a net $62.1 billion in 2002 to $110.3 billion in 2012, a 77.6 percent increase. During this period, the seven major categories of expenditure grew at different rates.

Public assistance expenditures led all expenditure categories in both dollars and percentage of total net expenditures in both fiscal 2002 and 2012. These expenditures represented $21.9 billion of $62.1 billion in fiscal 2002 (35.2 percent), jumping by 104.4 percent to $44.7 billion out of a total $110.3 billion in fiscal 2012 (40.5 percent). Medical services and specialties ($18.6 billion) and unemployment payments ($5.1 billion) made up the bulk of these expenditures in fiscal 2012.

The second-largest category was intergovernmental payments, which comprised 26.8 percent (about $29.6 billion) of total expenditures in fiscal 2012. Labor costs were the third-largest category, at $23.1 billion, followed by miscellaneous expenses ($5.5 billion), highway construction ($4.2 billion), operating expenses ($2.8 billion) and capital outlays ($499 million).

The tables and chart below illustrate the growth in expenditures by major category between 2002 and 2012.

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

Fiscal 2002 and 2012

Major Category of Expenditure Fiscal 2002 Fiscal 2012 Percent Change
FY 2002 to 2012
Rank by
Percent Change
FY 2002 to 2012
Intergovernmental Payments $16,452,277,377 $29,558,606,947 79.7 4
Labor Costs 15,262,023,314 23,104,954,376 51.4 5
Public Assistance 21,865,656,669 44,698,772,383 104.4 2
Highway Construction 3,512,991,134 4,186,344,597 19.2 6
Operating Expenses 1,520,692,069 2,811,577,022 84.9 3
Capital Outlays 476,366,298 499,363,461 4.8 7
Miscellaneous 2,442,903,562 5,459,803,333 123.5 1
Total Net State Expenditures by County $62,106,906,632 $110,319,422,119 77.6

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

Fiscal 2002 and 2012

Category of Expense Fiscal 2002 Percent of
Net Expenditures
Fiscal 2002
Fiscal 2012 Percent of
Net Expenditures
Fiscal 2012
Intergovernmental Payments $16,452,277,377 26.5 $29,558,606,947 26.8
Labor Costs 15,262,023,314 24.6 23,104,954,376 21.0
Public Assistance 21,865,656,669 35.2 44,698,772,383 40.5
Highway Construction 3,512,991,134 5.7 4,186,344,597 3.8
Operating Expenses 1,520,692,069 2.4 2,811,577,022 2.6
Capital Outlays 476,366,298 0.8 499,363,461 0.5
Miscellaneous 2,442,903,562 3.9 5,459,803,333 4.9
Total Net Expenditures $62,106,906,632 $110,319,422,119

Major Categories of Expense
as Percent of Total Net Expenditures

Fiscal 2002 and 2012

Major Categories of Expense as Percent of Total Net Expenditures

Changes Affecting State Agencies

Legislation from the 82nd Texas Legislature affected a number of state agencies. The Texas Juvenile Probation Commission (Agency 665) and the Texas Youth Commission (Agency 694) were abolished, and their duties transferred to the new Texas Juvenile Justice Department (Agency 644). The Office of Violent Sex Offender Management (Agency 544) was funded separately under the Department of State Health Services Agency 537) for the 2012-2013 biennium. The Texas Department of Rural Affairs (Agency 357) became a department within the Texas Department of Agriculture (Agency 551). The Texas Real Estate Commission (Agency 329) became a self-directed, semi-independent agency.

Adjustments to the Uniform Statewide Accounting System

Most of the data in this report comes from the Uniform Statewide Accounting System. The Comptroller’s office uses USAS, a computerized accounting system, to control and report all Texas state government expenditures. 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 draws expenditure data from USAS in the form of vouchers submitted by state agencies for payment of goods and services. Vouchers, which cite 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 counties relies on 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 adjust the data for this report. For fiscal 2012, the Attorney General’s office provided a list of its distribution of child support payments made to recipients in and out of 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, were used to adjust fee-for-service and managed-care Medicaid expenditures. HHSC provided payment data by county for Temporary Assistance for Needy Families to make a proportional distribution by county.

The Comptroller’s office collected additional expenditure data from the Texas Education Agency (TEA) on school textbooks and allowable purchases from school districts’ allotments. TEA also supplied intergovernmental payments data on grants for elementary and secondary schools and school apportionment (the Foundation School Program). Senate Bill 6, passed by the 2011 Texas Legislature, established the Instructional Materials Fund (IMF) using funds from the distribution of the permanent school fund. A school district is entitled to receive an annual Instructional Materials Allotment (IMA) from the IMF for each student enrolled. The IMA may be used to purchase adopted and non-adopted instructional materials, technological equipment and technology-related services. For adopted instructional materials, TEA pays the publisher on the district’s behalf, using its IMA (7383 report). For non-adopted instructional materials, technology services and technological equipment, the district must request a disbursement of funds to acquire the products or services. Upon TEA approval, the funds are sent directly to the district (7601 report).

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 receiving housing assistance and home improvement program funds.

The Texas Workforce Commission supplied fiscal 2012 unemployment insurance benefit data by county reflecting more than $2.5 billion in federal and nearly $2.4 billion in state benefits, for a total of almost $4.9 billion in unemployment insurance benefit payments paid in fiscal 2012.

Each year, the Texas Workforce Commission includes federal unemployment benefits in its data submission 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, Congress passed Public Law 110-252 (the Supplemental Appropriations Act, 2008), which established the Emergency Unemployment Compensation Program (EUC08). Since then, Congress has passed 11 additional statutes that extended and in some cases expanded the program. Most recently, HR 8, the American Taxpayer Relief Act, was signed into law on January 2, 2013. This law extends federally funded EUC08 unemployment benefits to January 3, 2014. During portions of fiscal 2012, Texans were able to collect up to 99 weeks of unemployment benefits. Under the most recent statute, however, the maximum length of state and federally funded benefits is 60 weeks.

Expenditures not allocated to counties are moved to “Expenditures Unallocable to Texas Counties.” Transactions moved to this category in fiscal 2012 include expenditures for Object Codes 7001-7048, Salaries and Wages; Object Code 7206, Service Fee Paid to the Lottery Operator (GTech, 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 7829, Disburse Medicaid Incentive Transfer – State (UPL); 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 comprising each of the major spending categories are:

7383 Textbooks for Public Free Schools $366,336,624
7601 Grants–Elementary and Secondary Schools 5,963,134,225
7602 School Apportionment–Foundation Program 19,222,015,479
7603 Grants–Junior Colleges 1,022,776,947
7604 Grants–Senior Colleges and Universities 124,890,692
7611 Payments/Grants–Cities 761,603,460
7612 Payments/Grants–Counties 892,718,504
7613 Payments/Grants–Other Political Subdivisions 619,708,739
7621 Grants–Council of Governments 196,682,571
7622 Grants–Judicial Districts 239,730,008
7683 Allocations to Cities–Mixed Beverage Tax 55,072,015
7684 Allocation to Counties–Mixed Beverage Tax 59,735,138
7688 Allocation for International Fuels Tax Agreement (IFTA ) 34,202,545

2012 Expenditures
Salaries and Wages
7001 Salaries and Wages–Line Item Exempt Positions $107,370,214
7002 Salaries and Wages–Classified and Non-Classified Permanent Full-Time Employees 5,497,471,653
7003 Salaries and Wages–Classified and Non-Classified Permanent Part-Time Employees 48,133,634
7004 Salaries and Wages–Classified and Non-Classified Non-Permanent Full-Time Employees 16,577,611
7005 Salaries and Wages–Classified and Non-Classified Non-Permanent Part-Time Employees 5,569,656
7006 Salaries and Wages–Hourly Full-Time Employees 32,136,854
7007 Salaries and Wages–Hourly Part-Time Employees 6,439,541
7008 Higher Education Salaries–Faculty/Academic Employees 1,802,123,410
7009 Higher Education Salaries–Faculty/Academic Equivalent Employees 52,444,043
7010 Higher Education Salaries–Professional/Administrative Employees 771,319,332
7011 Higher Education Salaries–Extension–Professional/Administrative Employees 14,085,137
7014 Higher Education Salaries–Student Employees 186,144,650
7015 Higher Education Salaries–Classified Employees 954,115,807
7016 Salaries and Wages–Classified Employees Receiving Twice-a-Month Salary Payment 292,116,960
7017 One-Time Merit Increase 36,133,621
7018 Hardship Stations Pay 384,325
7019 Compensatory Time Pay 10,058,530
7020 Hazardous Duty Pay 51,495,900
7021 Overtime Pay 154,732,407
7022 Longevity Pay 159,442,291
7023 Lump Sum Termination Payment $81,204,342
7024 Termination Pay–Death Benefits 1,584,306
7025 Compensatory or Salary Per Diem 208,872
7028 Productivity Bonus Awards 335,524
7031 Emoluments and Allowances 38,656,825
7035 Stipend Pay 6,381,725
7037 Incentive Award for Authorized Service to Veterans 104,134
7046 High Performance Bonus for Administration of the Supplemental Nutrition Assistance Program (SNAP) 8,638,400
7047 Recruitment and Retention Bonuses 1,421,863
7050 Benefit Replacement Pay 33,227,322
Employee Benefits
7032 Employees Retirement–State Contribution 356,369,707
7033 Employee Retirement–Other Employment Expenses 1,420,490
7041 Employee Insurance Payments–Employer Contribution 1,910,863,086
7042 Payroll Health Insurance Contribution 54,510,343
7043 F.I.C.A. Employer Matching Contribution 726,643,588
7052 Unemployment Compensation Benefits–Special Fund Reimbursement 47,641,086
7061 Workers' Compensation Claims–Self Insurance Programs 2,722,916
7062 Workers' Compensation–Indemnity Payments 15,442,930
7082 Retirement/Benefits Payments–Judicial Retirement System 26,464,422
7086 Optional Retirement–State Match 141,886,232
7231 Workers' Compensation–Medical Services and Attorney Payments 24,143,597
7232 Workers' Compensation Self Insurance Programs–Medical Services and Attorney Payments 1,943,323
7233 Employee Benefit Payments 5,476,763,080
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) 1,688,831,687
7101 Travel In-State–Public Transportation Fares 17,174,131
7102 Travel In-State–Mileage 58,060,302
7103 Travel–Per Diem, Non-Overnight Travel–Legislature 168,616
7104 Travel In-State–Actual Meal and Lodging Expenses–Overnight Travel 317,589
7105 Travel In-State–Incidental Expenses 8,065,840
7106 Travel In-State–Meals and Lodging 45,920,010
7107 Travel In-State–Non-Overnight Travel (Meals) 430,281
7108 Travel In-State–Actual Expense Meals–No Overnight Travel 38,289
7110 Travel In-State–Board or Commission Member Meal and Lodging Expenses 659,740
7111 Travel Out-of-State–Public Transportation Fares 6,256,218
7112 Travel Out-of-State–Mileage 386,764
7113 Travel–Per Diem, Overnight Travel–Legislature 623,028
7114 Travel Out-of-State–Actual Meal and Lodging Expenses, Overnight Travel 1,177,004
7115 Travel Out-of-State–Incidental Expenses 1,194,952
7116 Travel Out-of-State–Meals and Lodging Not to Exceed the Locality-Based Allowance 4,301,786
7117 Travel Out-of-State–Non-Overnight Travel (Meals) 696
7118 Travel Out-of-State–Actual Expense Meals–No Overnight Travel 477
7121 Travel–Foreign $564,938
7122 Travel In-State–Single-Engine Aircraft Mileage 23,415
7123 Travel Out-of-State–Single-Engine Aircraft Mileage 979
7124 Travel In-State–Twin-Engine Aircraft Mileage 9,596
7126 Travel In-State–Turbine-Powered or Other Aircraft Mileage 22,084
7128 Travel–Apartment/House Rental Expense 17,239
7130 Travel Out-of-State–Board or Commission Member Meal and Lodging Expenses 64,380
7131 Travel–Prospective State Employees 312,311
7134 Legislative Per Diem 6,023
7135 Travel In-State–State Hotel Occupancy Tax Expense Outside Galveston, Port Aransas and South Padre Island City Limits (423,551)
7136 Travel In-State–State Hotel Occupancy Tax Expense Inside Galveston City Limits (3,770)
7137 Travel In-State-State Hotel Tax Expense Inside South Padre Island City Limits (682)
7138 Travel In-State-State Hotel Tax Expense Inside Port Aransas City Limits (30)
TOTAL TRAVEL 145,368,656
Professional Fees and Services
7238 Foreign Office Activities 351,520
7239 Consultant Services–Approval by Office of the Governor 7,336,424
7240 Consultant Services–Other 21,538,272
7242 Consulting Services–Information Technology (Computer) 13,821,162
7243 Educational/Training Services 14,989,908
7245 Financial and Accounting Services 32,956,470
7246 Legal Services 18,138,840
7247 Hearings Officers–Pre-approved by the State Office of Administrative Hearings 22,817
7248 Medical Services 507,025,512
7249 Veterinary Services 590,583
7252 Lecturers–Higher Education 1,108,560
7253 Other Professional Services 980,725,615
7254 Other Witness Fees 4,282,749
7255 Investment Counseling Services 19,625,465
7256 Architectural/Engineering Services 269,901,088
7257 Legal Services–Approval by the State Office of Administrative Hearings 221,495
7258 Legal Services–Other 13,186,840
7259 Race Track Officials 3,500
7275 Information Technology Services 207,950,598
7396 TxDOT Toll Road Expenditures-Preliminary Engineering 112,927
TOTAL LABOR COSTS $23,104,954,376
2012 Expenditures
7214 Public Assistance Payments–Unemployment $5,124,527,964
7215 Return of Retirement Contributions 473,204,294
7623 Grants–Community Service Programs 2,346,919,004
7624 Grants–Individuals 31,760,290
7640 Public Assistance–Child Support Payments, Non-Title IV-D 777,454,864
7641 Public Assistance–Temporary Assistance for Needy Families (TANF) 96,075,667
7642 Public Assistance–Child Support Payments, Title IV-D 3,407,356,025
7643 Other Financial Services 81,449,913
7644 Commodity Distribution Program $352,427,615
7645 Disaster Relief Payments 2,723,636
7651 Financial Services–Discharged Convicts 4,046,075
7652 Financial Services–Rehabilitation Clients 224,511,585
7661 Medical Services–Nursing Home Programs 4,127,078,073
7662 Vendor Drug Program 1,890,449,612
7664 Supplementary Medical Insurance Benefits 1,041,713,032
7666 Medical Services and Specialties 18,625,578,332
7671 Grants-in-Aid (Day Care) 21,854
7672 Grants-in-Aid (Foster Care) 575,847,878
7673 Grants-in-Aid (Care for Aged, Blind and Disabled) 107,426,984
7674 Grants-in-Aid (Services for Children/Clients) 137,462,817
7676 Grants-in-Aid (Transportation) 186,562,542
7677 Family Planning Services 102,260,397
7678 Employment Social Services 94,866
7679 Grants–College/Vocational Students 53,498,122
7680 Grants-in-Aid (Food) 567,532,853
7681 Grants–Survivors 11,768,472
7829 Disburse Medicaid Incentive Transfers to State Hospitals (UPL) 163,039,955
7830 Disbursement of Disproportionate Share Funds/State Hospitals 285,703,533
7831 Disbursement of Disproportionate Share Funds/Non-State Hospitals 864,613,581
7832 State Hospital Payments of State Matching Disproportionate Share and Upper Payment Limit (UPL) Funds 451,943,488
7835 Disbursement Medicaid Incentive Transfers to Urban/Rural Hospitals (UPL) 2,583,719,060
2012 Expenditures
7347 Real Property–Construction in Progress–Highway Network–Capitalized $3,733,634,038
7348 Real Property–Land/Highway Right-of-Way–Capitalized 452,823,487
7397 TxDOT Toll Road Expenditures–Construction 0
7398 TxDOT Toll Road Expense–Construction Engineering (112,927)
7399 TxDOT Toll Road Expenditures–Right of Way 0
  2012 Expenditures
Supplies and Materials
7291 Postal Services $84,417,631
7300 Consumables 88,558,680
7303 Subscriptions, Periodicals and Information Services 5,717,112
7304 Fuels and Lubricants–Other 102,412,555
7307 Fuels and Lubricants–Aircraft 1,543,270
7310 Chemicals and Gases 7,916,096
7312 Medical Supplies 220,302,438
7315 Food Purchased by the State 1,420,032
7316 Food Purchased for Wards of the State 130,723,576
7322 Personal Items–Wards of the State 8,237,378
7324 Credit Card Purchases for Clients or Wards of the State 1,660,369
7325 Services for Wards of the State 45,702,709
7328 Supplies/Materials–Agriculture, Construction and Hardware 331,048,893
7330 Parts–Furnishings and Equipment 52,522,748
7331 Plants $2,243,117
7333 Fabrics and Linens 1,691,921
Repairs and Maintenance
7262 Personal Property–Maintenance and Repair–Computer Software–Expensed 111,614,636
7263 Personal Property–Maintenance and Repair–Aircraft–Expensed 1,818,078
7266 Real Property–Buildings–Maintenance and Repair–Expensed 123,353,817
7267 Personal Property–Maintenance and Repair–Computer Equipment–Expensed 54,539,055
7270 Real Property–Infrastructure–Maintenance and Repair–Expensed 546,025,683
7271 Personal Property–Land–Maintenance and Repair–Expensed 8,119,616
7338 Real Property–Facilities and Other Improvements–Maintenance and Repairs–Expensed 3,885,732
7354 Leasehold Improvements–Expensed 780,800
7358 Real Property–Infrastructure–Preservation Costs–Expensed (1,706)
7367 Personal Property–Maintenance and Repair–Expensed 31,950,101
7368 Personal Property–Maintenance and Repairs/Motor Vehicle–Expensed 33,150,621
7514 Real Property–Infrastructure/Telecommunications–Maintenance and Repair–Expensed 19,019,718
Communication and Utilities
7276 Communication Services 51,234,296
7293 Statewide Telecommunications Network 46,551,366
7501 Electricity 187,926,217
7502 Natural and Liquefied Petroleum Gas 16,016,994
7503 Telecommunications–Long Distance 1,345,787
7504 Telecommunications–Monthly Charge 29,642,113
7507 Water 36,181,803
7510 Telecommunications–Parts and Supplies 3,402,958
7516 Telecommunications–Other Service Charges 36,840,063
7517 Personal Property–Telecommunications Equipment– Expensed 6,913,670
7518 Telecommunications–Dedicated Data Circuit 1,381,154
7521 Real Property–Infrastructure/Telecommunications Equipment–Expensed 1,090,471
7522 Telecommunications–Equipment Rental 3,256,427
7524 Other Utilities 2,372,064
7526 Waste Disposal 36,455,192
7530 Thermal Energy 19,022,759
Rentals and Leases
7401 Rental of Radio Towers 400,775
7406 Rental of Furnishings and Equipment 48,734,236
7411 Rental of Computer Equipment 33,487,170
7415 Rental of Computer Software 7,859,933
7421 Rental of Reference Material 1,089,751
7442 Rental of Motor Vehicles 1,752,401
7443 Rental of Aircraft–Exempt 2,261,317
7444 Charter of Aircraft (2,227)
7445 Rental of Aircraft 118,972
7449 Rental of Marine Equipment $2,907
7461 Rental of Land 2,045,473
7462 Rental of Office Buildings or Office Space 155,135,862
7468 Rental of Service Buildings 4,208,534
7470 Rental of Space 15,211,613
Printing and Reproduction
7218 Publications 4,887,899
7273 Reproduction and Printing Services 34,374,395