1. Chapter Eight Bureaucracy, Public Policies, and Finance

2. Copyright © Houghton Mifflin Company. All rights reserved. 8-2 Role of State Agencies State Employees Number Compensation

3. Copyright © Houghton Mifflin Company. All rights reserved. 8-3 Table 8.1: Texas Minorities and Women in Non-Higher Education State Employment, Fiscal Year 2002 Source: Texas Commission on Human Rights, 2002

4. Copyright © Houghton Mifflin Company. All rights reserved. 8-4 Education Public Schools Colleges and Universities

5. Copyright © Houghton Mifflin Company. All rights reserved. 8-5 Social Services Human Services Health, Mental Health, and Mental Retardation Services Employment

6. Copyright © Houghton Mifflin Company. All rights reserved. 8-6 Figure 8.1: The Consolidated Health and Human Services System

7. Copyright © Houghton Mifflin Company. All rights reserved. 8-7 Economic Policies Business Regulation Business Promotion

8. Copyright © Houghton Mifflin Company. All rights reserved. 8-8 Fiscal Policies Taxing Policy Budget Policy Spending Policy

9. Copyright © Houghton Mifflin Company. All rights reserved. 8-9 Figure 8.3: Sources of State Revenue, 2004-2005 Source: Office of the State Comptroller of Public Accounts, Biennial Review Estimate 2004-2005.

10. Copyright © Houghton Mifflin Company. All rights reserved. 8-10 Revenue Sources The Politics of Taxation Revenue from Gambling Nontax Revenues The Public Debt

11. Copyright © Houghton Mifflin Company. All rights reserved. 8-11 Figure 8.4: Texas Biennial Budget Cycle Source: Senate Research Center, A Guide to the Budget Process in Texas (Austin: Texas Senate, January 2003), 5.

12. Copyright © Houghton Mifflin Company. All rights reserved. 8-12 Budgeting and Fiscal Management Budgeting Procedure Budget Expenditures Budget Execution

13. Copyright © Houghton Mifflin Company. All rights reserved. 8-13 Figure 8.5: Texas Legislative Budget Board’s Biennial Budget Recommendations for Fiscal Years 2004-2005 Source: Legislative Budget Board, Summary of Legislative Budget Estimates for the 2004-2005 Biennium, January 2003, 1.

14. Copyright © Houghton Mifflin Company. All rights reserved. 8-14 Budgeting and Fiscal Management Purchasing Accounting Auditing

15. Copyright © Houghton Mifflin Company. All rights reserved. 8-15 Future Demands Public Education Public Higher Education Public Assistance

16. Copyright © Houghton Mifflin Company. All rights reserved. 8-16 Environmental Issues Air and Water Hazardous Waste

17. Copyright © Houghton Mifflin Company. All rights reserved. 8-17 Homeland Security State’s role

18. Copyright © Houghton Mifflin Company. All rights reserved. 8-18 Selected Reading “Memo Costs State Employee Her Job” by W. Gardner Selby