I just ran across the proposed 2010-2011 DPS budget: http://www.txdps.state.tx.us/dps_lar_vol_1.pdf
(Be warned: This is an 8-MB file.)
Some interesting points:
The budget for the Concealed Handgun Licensing Division is broken out (on page 10)
Actual 2007 ...... $5,555,039
Estimated 2008 .. 5,467,950
Budgeted 2009 ... 4,518,796
Requested 2010 .. 4,518,796
Requested 2011 .. 4,518,796
That's right: with an increase in applications of 30% or so, the budget request is for the same amount of money as the current fiscal year.
For perspective, the entire DPS budget request for 2010 is about $114 million, so CHL is about 4% of the whole.
In 2008 (the last full year for which data is available) DPS issued 73,090 licenses and also processed fewer than 500 that were denied. At an estimated $100 per application, that comes out to more than $7 million in revenue.
In other words, CHL fees are bringing in about $4.5 million more than DPS spends processing them.
Unless I'm missing some piece of information, something is rotten in Austin.