One of a series of studies, this monograph presents descriptive information to provide an understanding of the present budgetary system for Community Mental Health Centers (CMHCs) as it relates to Mexican Americans in Texas. The document: (1) provides a description of federal and state laws and their historical evolution germane to the funding of CMHCs; (2) explains the appropriation system that Texas follows for its biennial budget; and (3) describes the sources of funds and the methods of securing them. An explanation of the grant-in-aid process employed by Texas is given indicating that no policy currently exists in the funding criteria that specifically creates policy which addresses the mental health needs of Mexican Americans, the state's largest linguistic minority group; however, information is presented which reveals an effort to reformulate this policy as of May, 1980. The paper also examines the relationship between the amount of a center's aid and the Mexican American population in the center's catchment area, and between the aid and the ethnic content of the centers' programs. No direct relationship is indicated, and further research is recommended to identify the variables and values needed to be included in budgeting systems to ensure that all populations, including special linguistic ones, are adequately and appropriately served. (Author/JD)