Fiscal policy/ Public finance

The economic stabilization fund (ESF) of Texas is also known as the

Rainy Day Fund

What taxes does Texas rely on more than any other source of revenue to find the government?

Sales tax

Article 3 section 49 a a of the Texas constitution also known as the pay-as-you-go limit requires that

Texas maintains a balanced budget meaning that spending from the general revenue fund cannot exceed projected available revenue

why does Texas have two year budgets (budgets that will be valid for a biennium)?

The legislature only meets an odd numbered years so all of the business of the state for the next two years, including passing a budget needs to be done during that legislative session

Overall, the tax system in Texas is regressive, which means what?

The tax burden consumes a greater percentage of income, earned by lower income individuals

if there is a budget deficit during the Texas legislatures biennium, then money can be used from the economic stabilization fund with what

with approval of 3/5 of the members of both the Texas house and Texas senate

The position of State Treasure and texas was eliminated in 1996. Which office took over the treasurers responsibilities, including being responsible for the safety of the states money and for investing the state's money?

Comptroller of Public accounts

General state and local sales taxes combine to reach a rate of _____ percent

8. 25.

The purpose of the bi annual revenue estimate is to provide

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

Texas has a reputation of being a ___ state No services low tax low service low tax Low service low tax High service, high tax

Low service low tax

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

a) often comes with strings attached

In Texas what is the most important power of the state comptroller?

estimating state revenues for the legislature

which statement about progressive taxation is most accurate?

individuals with a lower income, Payless in taxes, because of a lower tax rate in those with a higher income

which statement about the Texas budget is true? a) allows highway trust funds to be used for education during economic recessions b) it's impossible to run a budget surplus c) it can include deficit financing from some government operations d) it covers a two-year period

it covers 2 year period

What are federal matching funds?

monies going to a state based on the state's spending for a program