The authors present a study on expenditures by state mental health, substan
ce abuse, and developmental disability agencies in the United States for th
e period between 1981 and 1993. The relationship between agency spending an
d organizational structure of state bureaucracy was examined. Results indic
ate that organizational structure is a determinant of agency spending. The
more independent an agency, the higher its spending; conversely, the more i
ndependent its competitor, the lower the agency's spending. The number of l
evels between an agency and the governor's office was not significant in ex
plaining agency expenditures.