2012 Biennial Performance Report 


Report on State Technology Expenditures

This report addresses Section 2054.055(b)(4) of the Texas Government Code, which requires DIR to provide a summary of the total expenditures for information resources technologies by the state.

The Report on State Technology Expenditures is presented in the following sections:


Assessment

DIR estimates that the state’s technology expenditures totaled approximately $2.9 billion in fiscal 2011 and $2.8 billion in fiscal 2012. These numbers reflect both the costs of technology goods and services like the purchase of computers and software, and information technology staff compensation.

While technology spending in the state has increased slightly over the past six years, it has remained roughly constant as a percentage of state operating budget. Texas also remains well under national averages for technology spend in government which averaged 3.6 percent of operating expenses in 2011 and 3.3 percent in 2012. The following charts reflect trends in technology spending over the past six years and the trend relative to total state expenditures.

Estimated State Technology Expenditures
(Dollars Rounded, in Billions)

 

Technology Expenditures as a Percentage of Total State Spend
(Dollars Rounded, in Billions)

 

Analysis

State Agency Technology Expenditures

Staff compensation accounts for approximately 28 percent of total technology expenditures. State agencies account for 60 percent of total technology expenditures. In hardware alone, Texas has 539,000 computers and laptops that are either owned or leased, 42,800 mobile devices and 73,800 printers. Table 1 shows state agency technology expenditures for total staff compensation and for goods and services, by category (excluding higher education institutions).

Table 1. State Agency Technology Expenditures – Fiscal Years 2007–2012*
(Dollars Rounded, in Millions)

State Agencies

FY2007

FY2008

FY2009

FY2010

FY2011

FY2012

Total, Staff Compensation

$204.0

$240.6

$305.7

$261.1

$270.8

$261.6

Goods and Services

  

  

  

  

  

  

    Computer Hardware

$227.1

$240.6

$174.1

$209.4

$219.3

$217.1

    Computer Software

$119.8

$122.5

$127.1

$171.2

$131.9

$139.8

    Contract Services

$413.8

$428.0

$510.3

$553.2

$663.9

$553.2

    Data Center Services

$7.7

$153.3

$172.1

$190.9

$169.2

$174.3

    Telecom Hardware

$30.9

$36.0

$52.7

$53.3

$139.6

$111.8

    Telecom Services

$178.8

$220.5

$169.8

$218.4

$163.6

$158.8

    Supplies

$17.6

$19.6

$19.7

$19.3

$19.2

$17.8

    Training

$11.0

$12.1

$13.9

$14.3

$11.4

$11.0

Total, Goods and Services

$1,006.7

$1,232.6

$1,239.7

$1,430.1

$1,518.3

$1,389.9

GRAND TOTAL

$1,210.7

$1,473.2

$1,545.4

$1,691.2

$1,789.1

$1,645.5

* State agency payroll data is tracked by the CPA in the Uniform Statewide Payroll/Personnel System (USPS) and in the Standardized Payroll/Personnel Reporting System (SPRS). Texas has 882 job classifications, of which 54 are categorized as Information Technology. Some state technology workers have non-technology job classifications, thus the figures from the payroll systems slightly understate the true payroll expenditures. Purchases of goods and services are recorded in the CPA’s Uniform Statewide Accounting System (USAS). Technology expenditure estimates based on USAS are approximate because certain object codes used to describe goods and services in USAS do not precisely differentiate between technology and non-technology items.

Higher Education Technology Expenditures  

Table 2 shows estimated technology expenditures for higher education institutions for fiscal years 2007–2012 for both staff compensation and goods and services. Sub-categories are not shown under goods and services, as these are not available. (The best available higher education technology expenditure data, both staff compensation and goods and services, comes from the annual Core Data Survey conducted by EDUCAUSE, Inc. Some Texas institutions do not participate in the survey; expenditures for non-participating institutions were estimated by extrapolation based on institution size.)

Table 2. Higher Education Institutions Technology Expenditures – Fiscal Years 2007–2012
(Dollars Rounded, in Millions)

Higher Education

FY2007

FY2008

FY2009

FY2010

FY2011

FY2012

Total, Staff Compensation

$431.1

$473.7

$473.4

$522.5

$551.5

$580.5

Total, Goods and Services

$407.0

$501.5

$539.2

$622.0

$592.2

$562.5

GRAND TOTAL

$838.1

$975.3

$1,012.6

$1,144.4

$1,143.7

$1,143.1

Combined Statewide Technology Expenditures

Combining results from the previous two tables, the following table shows DIR’s estimate of statewide technology expenditures for fiscal years 2007–2012.

Table 3. Estimated Statewide Technology Expenditures – Fiscal Years 2007–2012
(Dollars Rounded, in Millions)

State Agencies and Higher Education

FY2007

FY2008

FY2009

FY2010

FY2011

FY2012

Total, Staff Compensation

$1,210.7

$1,473.2

$1,545.4

$1,691.2

$1,789.1

$1,645.5

Total, Goods and Services

$838.1

$975.3

$1,012.6

$1,144.4

$1,143.7

$1,143.1

GRAND TOTAL

$2,048.7

$2,448.5

$2,558.1

$2,835.6

$2,932.8

$2,788.5

Technology Expenditures as a Total of State Expenditures

The Comptroller's Texas Annual Cash Report identifies the total state-funded expenditures by fiscal year. To calculate the percentage of state expenditures for information technology, only state-funded IT expenditures are included.

Table 4. Technology Expenditures  as a Percent of Total State Expenditures  – Fiscal Years 2007–2012
(Dollars Rounded, in Millions)

State Expenditures

FY2007

FY2008

FY2009

FY2010

FY2011

FY2012

Technology Expenditures

$1,782.3

$2,145.2

$2,219.2

$2,481.1

$2,501.2

$2,394.5

All Expenditures

$74,500.8

$81,935.8

$88,575.6

$90,434.1

$95,458.8

$94,256.9

TECHNOLOGY PERCENT

2.39%

2.62%

2.51%

2.68%

2.62%

2.54%