Govt Chapter 11 InQuizitive

The Texas debt burden is relatively high compared to that of other states.

False

Which funding structure was created as a safeguard for the state in times of financial stress?

Economic Stabilization Fund

The Texas Constitution mandates that money spent on debt service cannot exceed more than what percentage of state revenue?

5 percent

What is the state portion of the sales tax rate on goods that can be purchased from retailers?

6.25 percent

Match each fund to its intended purpose(s).

Available School Fund: - a dedicated fund, supplemented by the motor fuels tax, to support general education State Highway Fund: - used to purchase rights of way to relieve congestion - a fund to support the construction, maintenance, and policing of roadways Permanent School Fund: - managed by the State Board of Education and distributed on basis of attendance levels - created in 1854, the largest source of funds for primary and secondary schools

The following table outlines a summary of the All Funds state budget and how it is allocated to different purposes. Looking closely at the data, which of the following statements are correct for the 2016-17 state budget?

Correct Answer(s) A significant portion of the state budget is dedicated to health and human services and education. In terms of actual dollars spent, allocation for education saw the biggest increase, and business and economic development received the second highest increase. Incorrect Answer(s) The biggest change in funding was for general government. In general, most categories of government spending went up in 2018-19 over 2016-17.

Study the figure on the budget-making process, and then determine which of the following statements are accurate.

Correct Answer(s) Both chambers of the legislature process the budget at the same time. The final stage of the budgetary cycle is with state agencies. Incorrect Answer(s) The budgetary process begins with a public hearing for agencies. The budgetary process begins in the governor's office.

Study the infographic below on taxation across America, and then determine which of the following statements are correct.

Correct Answer(s) Californians pay a higher state income tax than do Texans. Texas is one of seven states that do not have a state income tax. Incorrect Answer(s) Texans pay about 4.7 percent in state income taxes. In general, southern states have higher state income taxes than western and northeastern states.

Watch the animation on how taxes in Texas compare to other states in America, and then determine which of the following statements are accurate.

Correct Answer(s) Critics of states that lack state income taxes argue that the tax burden in such states is not distributed equally. Proponents of Texas's current income tax status argue that it helps the state attract more businesses to the state. Relatively few states in America do not have a state income tax.

The General Revenue Fund consists of which two parts?

Correct Answer(s) General Revenue-Dedicated account nondedicated General Revenue account Incorrect Answer(s) State Highway Fund Economic Stabilization Fund

Study the infographic below on the levels of taxation of different economic groups in Texas, and then determine which of the following statements are accurate.

Correct Answer(s) In terms of dollars, the top 1 percent of Texans pay the most in taxes. As a portion of their income, the bottom 20 percent of Texans pay more than do the top 20 percent. Incorrect Answer(s) As a portion of their income, the top 1 percent of Texans pay the most in taxes. As a proportion of income, the tax burden falls lightest on the poorest Texans and heaviest on the richest Texans.

Looking closely at the figure below on the sources of state tax revenue, which of the following statements are accurate?

Correct Answer(s) Sales taxes make up a significant portion of Texas's revenue. The motor fuel tax and the franchise tax are about the same in their contribution to the state's revenue. Incorrect Answer(s) The hotel occupancy tax makes up about half of Texas's revenue. The cigarette and tobacco tax contributes the least amount of revenue to the state.

Which of the following are reasons the Texas legislature refuses to regulate tuition and fees?

Correct Answer(s) The Texas legislature believes individual schools are best equipped to make decisions about their own tuition and fees. State political leaders want costs held down. The Texas legislature is unwilling to allocate more general revenue monies to higher education. Incorrect Answer(s) The Texas legislature cut overall spending but increased support for STEM programs.

Under the budget-execution authority granted in a 1985 constitutional amendment, how can state spending be affected between legislative sessions?

Correct Answer(s) The governor or the Legislative Budget Board can propose to transfer money from one agency to another. Either the governor or the Legislative Budget Board can propose to direct an agency to stop spending money appropriated to it in the budget. Either the governor or the Legislative Budget Board can propose that the purpose of an appropriation to an agency be changed. Incorrect Answer(s) The governor or Legislative Budget Board are authorized to make independent budgetary changes in between legislative sessions.

Which of the following statements about Texas public financing are correct?

Correct Answer(s) The state budget involves huge amounts of money. A significant amount of state revenues lies outside the direct control of the legislature. Federal expenditures shape the state's budget. Incorrect Answer(s) Legislators have a relatively free hand when it comes to making budget cuts.

Which issues will likely continue to dominate public finance in Texas over the next biennium?

Correct Answer(s) an increasing population and related needs for increased services growing antigovernment feeling encouraging cuts in services positive economic conditions in the short term Incorrect Answer(s) decreasing demand for federal funds for health care

Most federal funding given to the state of Texas is dedicated to which areas?

Correct Answer(s) health and human services education Incorrect Answer(s) immigration defense

Taxes assessed on which single industry form a significant source of income for the state and add an element of unpredictability?

Correct Answer(s) petroleum Incorrect Answer(s) tobacco hotels insurance

Which constitutional factors affect the way the budget is made in Texas?

Correct Answer(s) restrictions on dedicated funds time limits imposed by the biennial legislature Pay-as-You-Go Limit Incorrect Answer(s) agenda of the lieutenant governor Tea Party restriction on government spending

What are the primary revenue sources for local governments in Texas?

Correct Answer(s) sales taxes property taxes Incorrect Answer(s) state income tax block grants from the federal government

If an economic crisis were to occur that caused a significant decline in the projected tax revenue for the biennium, the state legislature would likely deal with the shortfall by taking which steps?

Correct Answer(s) use the Rainy Day Fund significant cuts in spending delay payments Incorrect Answer(s) increase the sales tax deficit spending

Watch the animation on the relative tax burden on Texans of different income levels, and then determine which of the following statements are accurate.

Correct Answers: Texas's taxes are mostly regressive. In terms of a percentage of their income, the richest Texans pay the least state taxes and the poor pay the most. Incorrect Answer(s) Texas's progressive state income tax helps keep the percentage of income paid in taxes relatively equal across different income levels.

Because Texas spends a large amount of money on jointly funded state-federal programs, it receives high levels of federal matching funds.

False

Texas has a reputation for being a "low service, high tax" state.

False

The Permanent University Trust Fund was established to provide funding to state universities seeking to achieve national prominence as competitive research institutions.

False

Which statement about trends in Texas government spending is best supported by the information presented in the following figure?

Spending by the state has been more or less steady since the 2008-09 biennium.

The Economic Stabilization Fund, created by the state legislature in 1988 as a sort of state savings account, is often also referred to as what?

Rainy Day Fund

A particular university in Texas is seeking to get National Research University Fund money from the state of Texas in order to further its efforts to become a competitive research institution. Not only must it meet several rigorous criteria laid out by the state legislature, but it must also be recognized as an emerging research university by which state institution?

Texas Higher Education Coordinating Board

The Welfare Spending Limit in the state constitution applies to which of the following?

needy dependent children

In 2003, Texas state political leaders found themselves facing a $10 billion shortfall. Required to balance the budget, which of the following did they do to close the deficit?

They cut higher education funding.

What is one way to view the budget proposed by the Legislative Budget Board?

a list of priorities of the legislative leaders

Which process does the legislature use to authorize spending money on programs and services?

appropriations

According to the terms of a 1993 _______ , in order for Texas to pass a state income tax, ________would need to give final approval for its introduction, and all funds from it could only support _______ .

constitutional amendment voter public education

In theory, preparing the initial budget is the responsibility of the _______ . and the legislature. In practice, preparing the budget is primarily the responsibility of the ___________

governor legislature

What is the name of funds in which federal monies go to a state based on that state's spending for a program?

matching funds

Liberty Park High School has received funding from the Texas Education Agency to fund 100 digital curriculum licenses for a new career technical training program for students obtaining a certification in architecture, construction, and manufacturing. Place in order the path that the funds for the new curriculum licenses took from the state to the high school.

permanent school funds available school funds instructional materials fund

A _________ is the type of tax where the tax burden falls more heavily on upper-income individuals.

progressive tax

When it comes to a budgetary surplus, conservative think tanks have suggested which of the following uses?

refunds for taxpayers

Suppose an economist argues that it would be fairer if everyone in society had to pay the same portion of their income in taxes rather than pay taxes at different rates based on income levels. The idea about paying a flat amount in taxes on income is an example of which kind of tax?

regressive

Tax rates that place more of a burden on low-and middle-income taxpayers than on wealthier taxpayers are called

regressive taxes

The ______ of Texas operate(s) under a "low tax, low services" philosophy that can often lead to _____ needing to raise taxes to keep up with funding demands for things such as education and infrastructure.

state local

Match each office with the responsibilities or tasks that it carries out in the budgeting process.

the comptroller of public accounts: -certify appropriations bills -collect state taxes the Legislative Budget Board: - prepare fiscal notes regarding costs and impacts of proposed legislation - prepare a general appropriations bill the governor: - develop a strategic plan for the state - exercise a line-item veto after an appropriations bill is passed

The budget of the state of Texas consists of five parts, representing different revenue sources and purposes. Match each budget with its correct definition and description.

the state's primary operating fund, derived from state sources of revenue: - General Revenue Funds budget the overall budget that includes all monies flowing into the state treasury and all state spending - All Funds budget a catchall budget that includes all funds flowing into the state treasury that are not included in other state budgets - Other Funds budget a budget for state funds dedicated to specific purposes - General Revenue-Dedicated Funds budget a fund that includes grants, payments, and reimbursements received from the federal government - Federal Funds budget