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Article VIII:
Regulatory Functions

Dozens of Article VIII agencies, boards and commissions license and regulate a wide variety of professions and activities in Texas, from banking to physical therapy to pari-mutuel horse racing.

Total expenditures for programs in Article VIII rose from $137.5 million in fiscal 1990 to $228.6 million in 2002, an increase of 66.3 percent. In real (1990) dollars, the 2002 total was $162.9 million, an 18.5 percent increase. Article VIII expenditures made up 0.42 percent of the total expenditures used in the statewide index calculation.

The review team created 48 separate expenditure indices for Article VIII agencies. The majority of the individual indices used numbers of licensees as their workload unit; some indices used the general population.

The combined Article VIII expenditure index rose to 1.22 during the study period, marking a 22 percent increase in expenditures per unit served.

Relatively small programs produced the two highest individual indices in this article:

8.51, for State Office of Administrative Hearings “All Other” (non-salary) expenditures. The agency began operations in fiscal 1992 and has experienced a steady rise in its hearings caseload since. Total 2002 expenditures of $1.9 million account for just 0.8 percent of all Article VIII spending.

7.49, for spending by the State Finance Commission. Agency 2002 spending accounted for just 0.4 percent of Article VIII spending.

3.64, for “All Other” (non-salary) expenditures by the Health Professions Council, which began operations in fiscal 1996. Agency 2002 spending accounts for just 0.02 percent of Article VIII spending.

The fiscal 2002 expenditures for these three indices amounted to just over $2 million and on a weighted basis had very little impact on the Article VIII calculation.

The indices with the largest share of Article VIII expenditures in 2002 were:

Texas Department of Insurance salaries and wages of $42.8 million, which accounted for 18.7 percent of Article VIII spending; and

Texas Workers’ Compensation Commission salaries and wages of $37 million, or 16.2 percent of all Article VIII spending.

These two indices had fiscal 2002 values of 1.15 and 1.43, respectively.