Article I agencies administer a variety of programs; they include the Governor’s Office, Comptroller’s office, Office of the Attorney General and a number of other agencies, boards and commissions.
The review team created 64 separate expenditure indices for Article I agencies, most of them using population as a workload measure. Some, however, employed more specific measures. For example, the State Office of Risk Management Worker’s Compensation Payments index was calculated in terms of the cost per state worker covered.
Total expenditures for programs in Article I agencies rose from $1.2 billion in fiscal 1990 to $2.2 billion in 2002, an increase of 84 percent. In real (1990) dollars, the total rose to $1.6 billion, a 33 percent increase. Fiscal 2002 Article I spending amounted to 4.03 percent of all expenditures used to calculate the statewide index.
The Article I expenditure index rose to 3.99 during the fiscal 1990-2002 period, representing a 299 percent increase in expenditures per workload unit.
The largest individual Article I indices for fiscal 2002 were:• 138.05, for the Texas Public Finance Authority’s “All Other” expenditure index (all spending other than interest payments, salaries and wages and the authority’s Master Lease Purchase Program). Total expenditures rose from $67,000 in fiscal 1990 to $16 million in 2002. Real expenditures increased to $11.6 million over the period. Most of this increase occurred in fiscal 2002, due to a $13 million expenditure for building improvements. Also contributing to the index’s growth was the authority’s expanded use of financial and accounting services, legal services, and fees for other professional services beginning in fiscal 1993. This index accounted for just 0.74 percent of Article I expenditures in 2002.
• 42.43, for Texas Historical Commission grant expenditures. Total spending in this area rose from $167,000 in fiscal 1990 to $23.3 million in 2002. Real expenditures increased to $17.3 million during this period; real expenditures per 10,000 Texas residents rose by 8,167 percent. Most of this increase began in fiscal 2001, due to new spending associated with a Courthouse Preservation Initiative authorized by the 1999 Legislature. This index accounted for 1.1 percent of Article I expenditures in 2002.
• 24.99, for major IT-related expenditures of the Department of Information Resources. Total expenditures for this index rose from $135,000 in fiscal 1990 to $74.4 million in 2002; real expenditures rose to $31.9 million over the period.
Since DIR makes purchases on behalf of other state agencies, vendor payments were used as the workload measure; the number of these payments rose by 842 percent during this period. Real expenditures per vendor payment rose by 2,399 percent. This index accounted for 3.4 percent of Article I spending in fiscal 2002.
• 23.43, for grant expenditures of the Commission on State Emergency Communications. Total expenditures rose from $2.5 million in fiscal 1995 to $34.1 million in 2002 (1995 expenditures representing the first full year of data reported to the state’s accounting system). Real expenditures per 10,000 Texans rose by 890.6 percent between fiscal 1995 and 2002, with the bulk of the increase occurring between fiscal 2000 and 2002, due to a requirement by the 1999 Legislature that both the emergency service and wireless service fees be deposited in the Treasury. Before, telephone companies remitted emergency service fees to regional councils of government; wireless service fees were remitted to the agency but not deposited in the Treasury. This index accounted for 1.6 percent of all Article I expenditures in fiscal 2002.
The index accounting for the largest share of 2002 Article I expenditures was the state’s contribution to state employee insurance, at $390.8 million or 18 percent of all Article I spending. Its index was 2.24, representing a 124 percent increase in real expenditures per employee receiving insurance payments through ERS from 1990 to 2002.
The second-largest share belonged to the Office of the Attorney General’s child support enforcement program administration, with $235.1 million or 10.8 percent of all Article I spending. Its index was 1.42, representing a 42 percent increase in real administration expenditures per child served from 1990 to 2002.