ABSTRACT
State government in Texas employs about 220,000. In recent years, spending by the state has totaled almost $70 billion annually. Health and education programs account for about threequarters of total spending.1 In contrast to practices at the federal level, where the president submits a budget that serves as the starting point for spending and revenue decisions, budget making in Texas is largely directed by the State Legislature. The process gives great emphasis to performance (see Box 10.1). Budgets show the amounts agencies will need to reach specific goals, as well as expected levels of progress in meeting those goals. The state uses a biennial system; that is, it approves a budget once every two years.
