However, welfare caseloads have declined and Medicaid caseloads have not grown as much as anticipated, leading to a slower rate of growth of federal dollars coming into the Lone Star State. Moreover, Texas spends relatively little to match programs for which the amount of federal aid received depends on the amount of state aid dollars spent. Other major non-tax sources of revenue include miscellaneous fees and charges, such as motor vehicle and college and university registration fees, interest and other investment earnings, and income from state lands. Where the money goes. Texas state government may issue bonds to finance a variety of specific capital projects.
Most programs supported by general obligation bonds pay their own costs.
Two examples of self-supporting general obligation bonds are Veterans Land and Housing Bonds, used to help Texas veterans buy land and homes, and College Student Loan Bonds, which fund loans to eligible Texas students. Revenue bonds are backed only by specifically designated state funds. No other state revenues or assets are pledged to support them, and no constitutional amendment is necessary to issue them. Revenue bond issues are designed to be self-supporting. State debt in Texas is low.