TX gov CH 11

When the federal government reimburses Texas for monies spent in program such as Medicaid or the Children's Health Insurance Program, these reimbursements go into which fund? A) General Revenue Funds B) Other Funds C) Federal Funds D) General Revenue-Dedicated Funds

D) General Revenue-Dedicated Funds

Most federal expenditures in Texas go to education and health and human services. However, in order for us to receive these funds, taxes must A) Allow the federal government to manage these programs. B) Coordinate efforts with neighboring states which economies of scale. C) Implement progressive taxes in order to generate more revenue. D) Spend state money in these areas first.

D) Spend state money in these areas first.

When you pay your motor vehicle registration fees, the money goes into which fund? A) User Fee Fund B) Department of Motor Vehicles Fund C) Road Maintenance Fund D) State Highway Fund

D) State Highway Fund

The Economic Stabilization Fund (ESF) is also known as the A) Rainy Day Fund. B) General Revenue Fund. C) Pay-As-You-Go Fund. D) Enterprise Fund.

Rainy Day Fund.

Article 3, Section 49a of the Texas Constitution, also known as the pay-as-you-go limit, requires that the dedicated funds are mandated in the constitution and cannot be altered. there is a specific margin of error allowed in the budgeting process. Texas maintain a balanced budget, meaning that spending from the General Revenue Fund cannot exceed projected available revenue. since taxes are paid into the state on a yearly basis, the legislature is able to set an annual budget.

Texas maintain a balanced budget, meaning that spending from the General Revenue Fund cannot exceed projected available revenue.

________ is a nondedicated revenue account and is the state's primary operating fund. The General Revenue Funds budget The General Revenue-Dedicated Funds budget The Federal Funds budget The Other Funds budget

The General Revenue Funds budget

One significant component of the budget process that is relatively unique to Texas is The constitutional mandate that Texas legislators write a budget every two years the constitutional mandate that Texas legislators allocate at least 50 percent of the budget toward health care. a federal budget cycle that complicates the state budgeting process. the unpredictability of natural disaster funding.

The constitutional mandate that Texas legislators write a budget every two years

Authorized by voters in 1991, the Texas state lottery generates a sizeable sum for the state budget. Which of the following statements regarding the Texas lottery is true? The lottery is played almost entirely by poor people. The lottery is played almost entirely by the wealthy. The lottery is played by large numbers of people from all social classes. All Texans unanimously support the lottery.

The lottery is played by large numbers of people from all social classes.

Compared to other states, Texas tends to spend a relatively small amount of money on programs that are jointly funded by the state and federal governments. Because of this, Texas is ineligible for any matching funds because they are distributed only to the largest contributors. the amount of money that Texas receives in matching funds and grants from the federal government is relatively low as compared to other states. Texas receives a higher than average amount of money from the federal government in grants and matching funds compared to other states. Texas shares a pool of funds with other states that are designated as "low-level" contributors.

the amount of money that Texas receives in matching funds and grants from the federal government is relatively low as compared to other states.

Overall, the tax system in Texas is generally considered to be regressive, which means that the tax burden consumes a greater percentage of income received by lower-income individuals. the tax burden consumes a greater percentage of the income earned by higher-income individuals. everybody pays the same percent of his or her income in taxes. the more income one has, the larger the percentage of it that goes to pay taxes.

the tax burden consumes a greater percentage of income received by lower-income individuals.

The National Research University Fund (NRUF) was established through a constitutional amendment to provide a source of funding for Question 61 options: community colleges in poorly performing districts. community colleges in primarily minority districts. independent school districts that sought to reduce the dropout rate. universities seeking to achieve national prominence as research institutions.

universities seeking to achieve national prominence as research institutions.

According to the Texas Constitution (Article 3, Section 51a), Texas cannot spend more than _____ of the state budget in any two-year period to help Navy dependent children or their caretakers. A) 1% B) 5% C) 15% D) 10%

A) 1%

What happens if money needs to be transferred from one agency to another and the legislature is not in session to authorize the transfer? A) The Governor can propose the transfer and the LBB can approve the proposal. B) The governor has to call a special session of legislature to solve this problem. C) The agency receiving the money will have the funds debited from its budget in the next state budget, and the agency giving the money will have the funds credited to its budget in the next day budget. D) The comptroller of public accounting to authorize the transfer.

A) The Governor can propose the transfer and the LBB can approve the proposal.

Nondedicated funds A) can be used for any purpose. B) can only be used for specific purposes. C) are exempt from the pay-as-you-go requirement. D) are provided by the federal government to the state.

A) can be used for any purpose.

Federal money is an important part of the Texas budget, but monies that Texas receives from the federal government A) often come with strings attached. B) are usually categorical grants with no federal guidelines or mandates whatsoever. C) are too insignificant to be included in the state budgetary process. D) are usually not received in time to affect the budget process.

A) often come with strings attached.

Who is responsible for developing independent audits for state agencies to ensure that they are complying with the state budget? A) the state auditor's office B) the Legislative Budget Board (LBB) C) the state comptroller's office D) the lieutenant governor's office

A) the state auditor's office

If you want to get the overall picture of revenue for the State of Texas, then you should look at which of the following? Question 60 options: General Allocations State Appropriations Funds All Funds State Revenue Account

All funds

The ________ is a dedicated fund established by the constitution for the support of public education in the state. A) Permanent University Fund (PUF) B) Available School Fund (ASF) C) National Research University Fund (NRUF) D) state lottery

B) Available School Fund (ASF)

The ________ budget is comprised of funds for dedicated revenues that target money for specific purposes. A) General Revenues Fund B) General Revenue-Dedicated Funds C) Federal Funds D) Rainy Day Funds

B) General Revenue-Dedicated Funds

Why must the Texas legislature maintain a balanced budget? A) It is required by the U.S. Constitution. B) It is required by the Texas Constitution. C) Each legislative session decides to balance or not balance the state budget. D) The Texas Office of the Comptroller writes the state budget.

B) It is required by the Texas Constitution.

In Texas, the state and local governments can both levy sales taxes. These general state and local sales taxes can combine to reach a rate of _________ percent. 8.25 7.15 9.50 6.25

8.25

Which universities are eligible to receive monies from the permanent university fund (PUF)? A) Any accredited university-based in Texas that offers at least two different masters degree programs. B) Universities that are part of the university of Texas and Texas A&M systems. C) Universities that are part of the university of Texas, Texas A&M, and University of North Texas systems. D) Any university-based in Texas that is not designated as either a research university of an emerging research university

B) Universities that are part of the university of Texas and Texas A&M systems.

In 1978, the Texas Constitution was amended (Article 8, Section 22), so that if the economy of the state shrinks, Question 66 options: A) appropriations can stay the same, as long as the budget balances. B) appropriations have to shrink as well. C) appropriations have to increase to stimulate the economy. D) the comptroller and the governor have the sole authority to decide how to deal with this kind of economic issue.

B) appropriations have to shrink as well.

Federal matching funds are A) state monies going to support the federal government in its efforts to reduce the deficit. B) monies going to a state based on a state spending for a program. C) always distributed to states without any strings attached. D) only awarded to states that have an income tax.

B) monies going to a state based on a state spending for a program.

The Permanent School Fund (PSF) was established to provide funds for ___________________ on the basis of _________________. A) the purchase of textbooks for K-12 students in Texas; the number of schools in a district B) primary and secondary schools in Texas; student attendance C) universities in Texas; test scores of students admitted to those institutions D) community colleges in Texas; how well the programs offered align with the needs of the local area

B) primary and secondary schools in Texas; student attendance

Texas relies on ____________ taxes more than any other source of revenue to fund the government. A) income B) sales C) property D) gasoline

B) sales

While the Texas Constitution does require that the state maintains a balanced budget, the state is allowed to carry debt as long as A) the projects funded by the debt are approved by the comptroller, governor, and LBB. B) the debt payments are not more than 5 percent of the state's revenue. C) all debts are automatically paid first to ensure that the state does not default. D) all debts are paid from a distinct fund kept separate from monies needed for essential functions.

B) the debt payments are not more than 5 percent of the state's revenue.

In theory, Texas has a dual budget system, meaning the budget authority is shared by the governor and the legislature; however, in practice, the primary players in the budget is/are A) the governor B) the legislature C) the taxpayers D) special interests

B) the legislature

When thinking about the system of public financing through these various budgets and funds, it is important to remember that A)personal income taxes are the largest source of funding for the state. B) the legislature does not have direct control of most of the money in the state budget. C) the legislature has a good amount of flexibility in terms of how money in the different funds can be spent. D) federal expenditures are determined by the state legislature.

B) the legislature does not have direct control of most of the money in the state budget.

While many of the sources of revenue in Texas are dedicated to specific purposes, designated as "nondedicated," or come from the federal government, there are some funds that are not included in the specific budget categories. Where do we classify these funds? A) Miscellaneous Funds B) Supplementary Funds C) Other Funds D) Auxiliary Funds

C) Other Funds

Is it through what process of the legislature legally authorize a government agency or body to spend up to a particular amount of money A) state spending B) revenue bonds C) appropriations D) general obligation bonds

C) appropriations

The Legislative Budget Board is chaired by A) the comptroller of public accounts. B) the governor. C) the lieutenant governor. D) the land commissioner.

C) the lieutenant governor.

If there is a budget deficit during the biennium, then money can be used from the Economic Stabilization Fund (ESF) A) at the request of the comptroller of public accounts and with the approval of the governor. B) only once every ten years. C) with the approval of three-fifths of the members of both the Texas House and Texas Senate. D) with the approval of the state treasurer and the governor.

C) with the approval of three-fifths of the members of both the Texas House and Texas Senate.

Why is the price of oil important for the budget of the State of Texas? A) Texas invests the monies within the Economic Stabilization Fund (ESF), including into the energy sector. When the price of oil is low, stocks in this sector lose value, and the ESF can lose money. B) Many cities and counties set their own sales tax rates based on the benchmark of the price of a barrel of oil. C) The price of oil is considered to be a leading indicator of the health of the overall economy in Texas since it is the largest and most important sector of the Texas economy. D) Texas collects tax revenue on all oil removed from the ground based on a percentage of the market value of a barrel of oil. Higher prices raise more revenue, and lower prices less revenue.

D) Texas collects tax revenue on all oil removed from the ground based on a percentage of the market value of a barrel of oil. Higher prices raise more revenue, and lower prices less revenue.

T/F According to article 3, section 49a (pay-as-you-go limit) on the Texas constitution, state agencies are allowed to take on debt, but only for one project at a time

False

T/F All colleges and universities in Texas have access to monies through the higher education fund

False

T/F Although Texas must maintain a balance budget, the legislature has a lot of flexibility and control over the state budget

False

T/F Because the budget process in Texas operates on a two-year cycle, Texas legislators have adequate time to gather information, carefully analyze it, and craft a detailed and accurate state budget.

False

T/F Besides the state government, the only other governmental authority who can impose a sales tax is a city government

False

T/F Federal matching funds for a program or not depending on how much the state also contributes to that program

False

T/F In the first stage of the budgetary process, the governors office develops a draft budget based on request from state agencies

False

T/F Texas is known as a high tax state, because of this it is a good place to do business

False

T/F The rainy day fund is more properly known as the national research university fund

False

T/F The state legislature can impose a personal income tax without requiring voter approval

False

T/F There is no mechanism available under the current budgetary system in Texas to ship monies between agencies or programs when the legislature is not in session

False

T/F When crafting a final legislative budget, the legislature works from the governors draft budget rather than the legislative budget boards draft budget

False

Universities that are not eligible to receive funding from the Permanent University Fund (PUF), are eligible for funding from the Education Equalization Fund (EEF) University Development Fund (UDF) Available University Fund (AUF) Higher Education Fund (HEF)

Higher Education Fund (HEF)

Which statement about the Texas budget is true? It covers a two-year period. It can include deficit financing from some government operations. It is impossible to run a budget surplus. It allows the Highway Trust Fund to be used for education during economic recessions.

It covers a two-year period.

Texas has a reputation of being a ________ state. "low service, high tax" "low service, low tax" "no services, low tax" "high service, high tax"

Low service, low tax

T/F If the comptroller certifies the budget, then it is considered to be balanced

True

T/F Money from the state highway fund can be used to acquire rights away for roadways

True

T/F Money is generated from the motor fuels tax are dedicated to either construction, maintenance, and policing of public roads or public education.

True

T/F Public education in Texas is funded through both the permanent school fund and the available school fund

True

T/F The legislative budget board plays an important role in the budget process in Texas

True

T/F Texas maintains a balanced budget because the state Constitution requires it.

True

T/F The Texas Comptroller's Office is predicting declining receipts in the tobacco settlement account due to fewer people purchasing cigarettes.

True

T/F The bulk of federal funds expenditures is in two areas: health and human services and education

True

T/F The states auditors office is responsible for making sure that agencies are in compliance with their budgets

True

T/F With a progressive income tax, people with lower income pay a lower tax rate then people with higher income

True

Which of the following make it unlikely that Texas will enact a personal income tax in the near future? A) Voters approved constitutional amendments in 1993 and 2019 that would make it extremely difficult to create a personal income tax in Texas. B) The Texas Constitution explicitly prohibits a personal income tax, and does not include any provision for creating a personal income tax. C) The Texas Supreme Court ruled that the personal income tax that had been in place previously violated the Texas Constitution. Once a law has been declared unconstitutional by the Texas Supreme Court, it cannot be reintroduced. D) The creation of any new forms of revenue, including a personal income tax, would require the support of three-fourths of both chambers of the legislature. In the current partisan polarized environment, it is nearly impossible to reach this threshold.

Voters approved constitutional amendments in 1993 and 2019 that would make it extremely difficult to create a personal income tax in Texas.

The purpose of the Biennial Revenue Estimate is to provide A) a detailed forecast of total revenues that the state is expected to take in over the next biennium. B) a detailed forecast of expenditures the state expects to be obligated for in the two-year budget cycle. C) a detailed forecast of the estimated federal funds the state can expect to receive during the two-year budget cycle. D) the governor a detailed estimate of the likelihood of a balanced budget during the two-year budget cycle.

a detailed forecast of total revenues that the state is expected to take in over the next biennium.

When we talk about a progressive tax, we are talking about a type of tax where Question 65 options: the money collected from the specific tax can only be used for policies determined to be in the "public good." individuals with a lower income pay less in taxes because of a lower tax rate than those with a higher income. individuals with a higher income pay less in taxes because of how the tax rates are established and constructed. everyone pays the same amount in tax regardless of income.

individuals with a lower income pay less in taxes because of a lower tax rate than those with a higher income.