Texas state budget
Energy policy • Public education • School choice • Public pensions • State budget • Ballot measures
|Texas state budget|
|State Credit Rating:||AA+ (as of May 2012)|
|Current Governor:||Rick Perry|
|GF expenses:||$43.521 billion (estimated for FY 2013)|
|All funds expenses:||$96.925 billion (estimated for FY 2013)|
|Spending % Change:||4.26%|
|% from Federal Funding:||34.51%|
|Per Capita State Debt:||$13,083|
|Other state budgets|
|Alabama • Alaska • Arizona • Arkansas • California • Colorado • Connecticut • Delaware • Florida • Georgia • Hawaii • Idaho • Illinois • Indiana • Iowa • Kansas • Kentucky • Louisiana • Maine • Maryland • Massachusetts • Michigan • Minnesota • Mississippi • Missouri • Montana • Nebraska • Nevada • New Hampshire • New Jersey • New Mexico • New York • North Carolina • North Dakota • Ohio • Oklahoma • Oregon • Pennsylvania • Rhode Island • South Carolina • South Dakota • Tennessee • Texas • Utah • Vermont • Virginia • Washington • West Virginia • Wisconsin • Wyoming|
- 1 Budget process
- 2 Expenditures
- 3 Revenues
- 4 State budgets by year
- 5 Historical spending
- 6 State debt
- 7 Federal aid to state budget
- 8 Budget transparency
- 9 Accounting principles
- 10 Contact information
- 11 See also
- 12 External links
- 13 References
- A summary of the budget drafting process
- Trends in expenditures and revenues
- Current and past fiscal year budget developments
- Financial transparency measures
Between fiscal year 2009 and fiscal year 2013, Texas's total expenditures increased by approximately $4.629 billion, from $92.296 billion in 2009 to $96.925 billion in 2013. This represents a 5.02 percent increase, below the cumulative rate of inflation during the same period (9.06 percent, calculated using the Consumer Price Indices for January 2009 and January 2013).
- Budget instructions are sent to state agencies beginning in March.
- Agencies submit their budget requests to the governor from July through September.
- Agency and public hearings are held from July through September.
- The governor submits his or her proposed budget to the state legislature on the 30th day of the regular session.
- The legislature typically adopts a budget in May. A simple majority is required to pass a budget. The fiscal year begins in September.
In Texas, the governor may exercise line item veto and item veto of appropriations authority.
The legislature is legally required to adopt a balanced budget. Similarly, the governor must sign a balanced budget into law.
Although each state executes its budget process differently, the National Association of State Budget Officers (NASBO) breaks down state expenditures into four general categories. This allows for comparisons among the 50 states. NASBO's categories are as follows:
- General fund: "The predominant fund for financing a state’s operations. Revenues are received from broad-based state taxes. However, there are differences in how specific functions are financed from state to state."
- Other funds: "Expenditures from revenue sources that are restricted by law for particular governmental functions or activities. For example, a gasoline tax dedicated to a highway trust fund would appear in the “Other funds” column. For Medicaid, other state funds include provider taxes, fees, donations, assessments, and local funds."
- Federal funds: "Funds received directly from the federal government."
- Bonds: "Expenditures from the sale of bonds, generally for capital projects."
The table below breaks down expenditures for fiscal year 2013 (comparable figures from surrounding states are provided to give additional context). Figures for all columns except "Per capita expenditures" are rendered in millions of dollars (for example, $2,448 translates to $2,448,000,000). Figures in the column labeled "Per capita expenditures" have not been abbreviated.
|Total state expenditures, FY 2013 ($ in millions)|
|State||General fund||Federal funds||Other funds||Bonds||Total||Per capita expenditures|
| Per capita figures are calculated by taking the state's total expenditures and dividing by the number of state residents according to United States Census estimates.|
Source: National Association of State Budget Officers
Expenditures by function
State expenditures in Texas can be further broken down by function (elementary and secondary education, public assistance, etc.). Fiscal year 2012 data is included in the table below (information from neighboring states is provided for additional context). Figures are rendered as percents, indicating the share of the total budget spent per category.
|Expenditures by function, FY 2012 (as percents)|
|State||Elementary and secondary ed.||Higher ed.||Public assistance||Medicaid||Corrections||Transportation||Other|
|Source: National Association of State Budget Officers|
From 2008 to 2012, the share of the state budget allotted for Medicaid expenditures rose by nearly 14 percentage points, or 83.5 percent. During the same period, transportation funding fell by 1.60 percentage points, or 16.5 percent, as a share of the budget. The table below details changes in expenditures from 2008 to 2012. Figures are rendered as percents, indicating the share of the total budget spent per category.
|Expenditures from 2008 to 2012 (as percents)|
|Year||Elementary and secondary ed.||Higher ed.||Public assistance||Medicaid||Corrections||Transportation||Other|
|Change in %||-0.10%||3.70%||0.00%||13.70%||-0.50%||-1.60%||-15.00%|
|Source: National Association of State Budget Officers|
The table below breaks down general fund revenues by source in fiscal year 2013 (comparable figures from surrounding states are also provided to give additional context). Figures for all columns except "Per capita revenue" are rendered in millions of dollars (for example, $2,448 translates to $2,448,000,000). Figures in the column labeled "Per capita revenue" have not been abbreviated.
|Revenue sources in the general fund, FY 2013 ($ in millions)|
|State||Sales tax||Personal income tax||Corporate income tax||Gaming tax||Other taxes and fees||Total||Per capita revenue**|
| Per capita figures are calculated by taking the state's total revenues and dividing by the number of state residents according to United States Census estimates for 2013.|
Source: National Association of State Budget Officers
The table below details the change in revenue sources in the general fund from 2009 to 2013. Figures for all columns except "Per capita revenue" are rendered in millions of dollars (for example, $2,448 translates to $2,448,000,000). Figures in the column labeled "Per capita revenue" have not been abbreviated.
|Revenue sources in the general fund, Texas ($ in millions)|
|Year||Sales tax||Personal income tax||Corporate income tax||Gaming tax||Other taxes and fees||Total||Per capita revenue**|
|Change in %||24.16%||0.00%||0.00%||0.00%||24.91%||24.50%||16.65%|
| Per capita figures are calculated by taking the state's total revenues and dividing by the number of state residents according to United States Census estimates.|
Source: National Association of State Budget Officers
State budgets by year
See budget bill: General Appropriations Act
Fiscal years 2014 and 2015
|Texas state budget -- 2014-2015|
|Texas State Legislature|
|Text:||General Appropriations Act|
|Introduced:||January 23, 2013|
|State House:||April 4, 2013|
|Vote (lower house):||135-12-1|
|State Senate:||March 20, 2013|
|Vote (upper house):||29-2|
|Conference:||May 26, 2013|
|Conference Vote (upper house):||27-4|
|Conference Vote (lower house):||118-29|
|Signed:||June 14, 2013|
Some conservatives criticized the budget and argued that state spending was expanding too quickly. A few days before signing the budget into law Perry responded by saying, "I did read some of the criticism, and I'm not sure that those who were making that criticism have a really good handle on the Texas budgeting process. Frankly, I don't understand their math." Perry contended that critics were including a supplemental spending bill in their calculations, which he maintained should be considered separately from the larger budget.
One-time expenditures from the state's Rainy Day Fund totaling approximately $4 billion were also included in the budget, primarily to pay for infrastructure projects and "accounting tricks used in previous budgets." Perry said, "This state is growing and we're growing fast, and we're putting great pressure on infrastructure, both transportation, water, schools, and we have been meeting that challenge rather well."
Fiscal years 2012 and 2013
- See also: Texas state budget (2011-2013)
Fiscal year 2011
- See also: Texas state budget (2010-2011)
Fiscal year 2010
- See also: Texas state budget (2009-2010)
State budget historical spending below was compiled by the National Association of State Budget Officers. Figures reflect the reported "Total Expenditures" in Table 1. Figures for all columns are rendered in millions of dollars (for example, $2,448 translates to $2,448,000,000).
|Historical state budget spending in Texas ($ in millions)|
|Fiscal year||General Fund||Other funds||Federal funds||Bonds||Budget totals|
|Total||% of Budget||Total||% of Budget||Total||% of Budget||Total||% of Budget|
|General Fund: The predominant fund for financing a state’s operations. Revenues are received from broad-based state taxes. However, there are differences in how specific functions are financed from state to state.|
Other funds: Expenditures from revenue sources that are restricted by law for particular governmental functions or activities. For example, a gasoline tax dedicated to a highway trust fund would appear in the “Other funds” column. For Medicaid, other state funds include provider taxes, fees, donations, assessments, and local funds.
Federal funds: Funds received directly from the federal government.
Bonds: Expenditures from the sale of bonds, generally for capital projects.
According to a January 2014 report by the nonprofit organization State Budget Solutions, Texas had a state debt of over $340 billion. Its state debt per capita was $13,083. The report revealed that state governments faced a combined $5.1 trillion in debt, 33 percent of annual gross state product. The obligation amounts to $16,178 per capita in the nation. A bulk of the state debt -- 79 percent -- was linked to unfunded public pensions.
|Total state debt in Texas|
|Total state debt||$340,944,239,000||3|
|Per capita debt||$13,083||31|
|State and other fund expenditures||$59,766,000,000||8|
A 2012 report from the Pew Center on the States noted that Texas's pension system was funded at 83 percent at the close of fiscal year 2010, above the 80 precent funding level experts recommend. Consequently, Pew designated the state's pension system as a "solid performer."
The funding ratio for the state's pension system decreased from 88.75 percent in fiscal year 2008 to 83.14 percent in fiscal year 2012, a decrease of 5.61 percentage points, or 6.3 percent. Likewise, unfunded liabilities increased from nearly $20.9 billion in fiscal year 2008 to more than $37.2 billion in fiscal year 2012.
States sometimes sell general obligation bonds to investors in order to finance large-scale undertakings (e.g., road construction and other public works projects). Credit rating agencies, such as Standard and Poor's, assign grades to states, evaluating their ability to pay the principal and interest on such bonds. Standard and Poor's grades range from AAA, the highest available, to BBB, the lowest. Generally speaking, a higher credit rating indicates lower risk for an investor, which in turn lowers costs for taxpayers.
The table below lists the Standard and Poor's credit rating for Texas from 2001 to 2012 (grades from surrounding states are provided for additional context).
|S&P credit ratings from 2001 to 2012|
Federal aid to state budget
- See also: Federal aid to budgets in the 50 states
The chart below notes how much of the state’s general revenues come from the federal government. Figures were calculated by dividing each state’s federal intergovernmental revenue into its general revenue. The number in the rightmost column indicates the state's ranking in relation to the rest of the nation (e.g., if "1," the state receives the highest percentage of federal funding in the nation). Figures from neighboring states are included to provide additional context.
State governments receive aid from the federal government to fund a variety of joint programs, such as Medicaid. Federal aid varies considerably from state to state. For example, Mississippi received approximately $7.7 billion in federal aid in 2012, which accounted for more than 45 percent of the state's general revenues. By contrast, Alaska received roughly $2.9 billion in federal aid in 2012, just under 20 percent of the state's general revenues.
|Federal aid to state budgets in 2012|
|State||Federal aid as % of general revenue||Total federal aid||National rank|
Texas received $15.19 billion in federal stimulus funding between February 2009 and June 1013.
|Line item expenditures|
|Public employee salaries|
|Date of last evaluation unknown.|
The state's official online spending transparency database is managed by the State Comptroller.
Independent transparency sites
The Texas Public Policy Foundation has created an independent website dedicated to Texas's budget and issues of transparency. In addition to state transparency information, the site includes data about local government and school district transparency.
Multi-measure budget transparency profile
The Institute of Government and Public Affairs at the University of Illinois created a multi-measure transparency profile for Texas, which measured state transparency as of September 2011 using indicators from a range of organizations. These indicators measured both website transparency and other recognized facets of governmental transparency. In addition, IGPA presented four unique indicators of non-transparency based on the observation that transfers or reassignments between general and special funds can obscure the true fiscal condition of a state.
IGPA devised a budget transparency index based on information available from the National Association of State Budget Officers. Texas tied for 33rd in the nation with 12 other states, earning four out of eight possible points.
|Texas - IGPA score for budget process, contents and disclosure|
|Budget transparency indicator||Yes or no?|
|"Generally Accepted Accounting Principles" budget|
|Binding revenue forecast|
|Legislative revenue forecast|
|Constitution or statutory tax/spend limitations|
In addition to the individual state profile, IGPA offers a 50-state comparison and profiles for other states.
U.S. PIRG "Following the Money" report
- See also: Following the Money 2014 Report
The U.S. Public Interest Research Group, a consumer-focused nonprofit organization based in Washington, D.C., released its annual report on state transparency websites in April 2014. The report, entitled "Following the Money," measured how transparent and accountable state websites are with regard to state government spending. According to the report, Texas received a grade of A- and a numerical score of 91, indicating that Texas was "leading" in terms of transparency regarding state spending.
- See also: Texas government accounting principles
The Texas State Auditor's Office (SAO) is the independent auditor for Texas state government. The SAO operates with oversight from the Legislative Audit Committee (LAC), a six-member permanent standing committee of the Texas state legislature. The LAC consists of the lieutenant governor, the speaker of the state house, one member of the senate appointed by the lieutenant governor, and the chairmen of the Senate Finance Committee, House Appropriations Committee and the House Ways and Means Committee.
Texas Governor's Office of Budget, Planning and Policy
1100 San Jacinto, 4th Floor
Austin, Texas 78711
- Texas government sector lobbying
- Texas public pensions
- Governor of Texas
- Texas State Senate
- Texas House of Representatives
- Texas State Legislature
- State Budget Solutions, Texas
- Texas Public Policy Foundation
- Texans for Fiscal Responsibility
- Window on State Government (official website)
- Texas Comptroller of Public Accounts
- Texas Budget Information from the Riley Group, LLC.
- Texas Legislative Budget Board
- Model transparency legislation from the American Legislative Exchange Council is available here
- Texas EDGE, Economic Data for Growth and Expansion
- U.S. PIRG, "Report: Transparent & Accountable Budgets," April 8, 2014
- The New York Times, "Battles loom in many states over what to do with budget surpluses," February 3, 2014
- Center on Budget and Policy Priorities, "Policy Basics: The ABCs of State Budgets," February 7, 2013
- Refers to General Fund spending. Typically in state budgets the General Fund is spending that is most directly controlled by state legislators.
- This figure is derived by calculating the percent difference between the prior two years' spending levels according to the National Association of State Budget Officers.
- Bureau of Labor Statistics, "CPI Detailed Report Data for February 2014," accessed April 9, 2014
- InflationData.com, "Cumulative Inflation Calculator," February 28, 2014
- National Conference of State Legislatures, "State Experiences with Annual and Biennial Budgeting," updated April 2011
- National Association of State Budget Officers, "Budget Processes in the States, Summer 2008," accessed February 21, 2014
- National Association of State Budget Officers "State Expenditure Report, 2011-2013," accessed February 21, 2014
- United States Census Bureau, "Annual Estimates of the Resident Population: April 1, 2010 to July 1, 2013," accessed February 26, 2014
- National Association of State Budget Officers, "State Expenditure Report, 2009-2011," accessed February 24, 2014
- National Association of State Budget Officers, "State Expenditures Report, 2010-2012," accessed February 24, 2014
- National Association of State Budget Officers, "State Expenditure Report, 2009," accessed February 24, 2014
- National Association of State Budget Officers, "State Expenditure Report, 2008," accessed February 24, 2014
- United States Census Bureau, "Vintage 2009: Annual Population Estimates," accessed February 26, 2014
- Office of the Governor, "Gov. Perry Line-Item Vetoes in SB 1," June 14, 2013
- The Texas Tribune, "Amid Criticism, Perry Defends State Budget," June 10, 2013
- State Budget Solutions, "State Budget Solutions' Fourth Annual State Debt Report," January 8, 2014
- Washington Examiner, "EXography: Unfunded public employee pensions drive state debts skyward," January 21, 2014
- State Budget Solutions "State Budget Solutions' Fourth Annual State Debt Report," January 8, 2014
- Pew Center on the States, "Widening Gap Update: Texas," June 18, 2012
- Employees Retirement System of Texas, "2012 Comprehensive Annual Financial Report," accessed November 20, 2013
- Teacher Retirement System of Texas, "2013 Actuarial Valuation Report," accessed November 20, 2013
- Texas Municipal Retirement System, "2012 Comprehensive Annual Financial Report," accessed November 20, 2013
- Texas County and District Retirement System, "2012 Comprehensive Annual Financial Report," accessed November 20, 2013
- Texas Emergency Services Retirement System, "2012 Actuarial Valuation," accessed November 20, 2013
- Stateline: The Daily News Service of The Pew Charitable Trusts, "Infographic: S&P State Credit Ratings, 2001-2012," July 13, 2012
- United States Census Bureau, "State Government Finances: 2012," accessed February 24, 2014
- Recovery.gov, "Stimulus Spending by State," accessed February 21, 2014
- Texas Budget Source, "Home page," accessed May 5, 2014
- Institute of Government and Public Affairs at University of Illinois, "Home page," accessed February 21, 2014
- Institute of Government and Public Affairs at University of Illinois, "Budget Transparency Profiles - All 50 States," September 2011
- U.S. Public Interest Research Group, "Following the Money 2014 Report," accessed April 15, 2014
- Texas State Auditor's Office, "Home page," accessed November 13, 2009