As the official technology agency for the state, the Texas Department of Information Resources (DIR) has shared the state’s technology expenditures as part of its 2022 Biennial Performance Report.
For context, state agencies and institutions of higher education (IHEs) are not required to report their technology expenditures directly to DIR. Instead, the agency uses existing data from secondary sources to derive estimates.
With that said, DIR estimates that the state has spent approximately $4.2 billion annually on IT in fiscal years 2021 and 2022.
Between FY 2016 through FY 2020, amounts spent hovered between $3 billion and $3.5 billion.
As for state funding sources, the state has spent approximately $3.7 billion per year on technology expenditures in FY 2021 and FY 2022.
In FY 2022 alone, state-employed IT staff compensation made up approximately 12 percent of estimated agency technology expenditures, while agencies spent 88 percent of funds on goods and services. In this case, goods and services include computer hardware, software, contract services, data center services, supplies, telecom hardware, telecom services and training.
Meanwhile, IHE-employed IT staff compensation comprised about half of estimated agency technology expenditures in FY 2022, with IHEs spending its remaining funds on goods and services.
To put this into perspective, staff compensation totaled $763 million in FY 2022, while purchased goods and services cost $238 million.
Agency Shares State Technology Expenditures in Performance Report
A majority of expenditures include staff compensation and purchased goods and services.
