Politics Chapter 12- Finance and Fiscal Policy

19 April 2023
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Government decisions regarding revenues, expenditures, and borrowing are referred to as
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fiscal policy.
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Texas has generally resisted using all of the following to balance the budget, except
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reducing agency funding.
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The traditional Texas fiscal policy is the achievement of a balanced budget through
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low taxes and low levels of public spending.
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Most Texans have indicated in numerous polls that they prefer __________ taxation.
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regressive
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Taxes that are a greater burden on lower incomes and less so on higher incomes are known as
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regressive taxes.
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Taxes that rely more heavily on revenues from higher incomes are known as
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progressive taxes.
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Texas has one of the most __________ state tax systems in the United States.
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regressive
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Which of the following is not a source of revenue for Texas state government?
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State income tax
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Which group of Texans pays the most in taxes proportional to their income?
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Poorest 20 percent
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Most non-farm jobs in Texas are in the general area of
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service providing.
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The Texas state tax mandated on the revenue of many businesses is the
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franchise tax.
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The "pay-as-you-go" system means that the Texas legislature must
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not pass a deficit budget.
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The fund that measures the state's fiscal health is the
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general revenue fund
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The fund available to the Texas legislature for general appropriations purposes is called the
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general revenue fund.
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More than half of the expenditures in Texas are paid from
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dedicated funds.
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Regarding fiscal policy, the Texas Constitution requires that the
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state's spending should be in balance with projected state revenues.
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In response to pressure from small businesses, the state legislature recently
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reduced the franchise tax for many businesses
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The tax that produces the most significant amount of revenue in Texas is the
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general sales tax.
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The online retailer Amazon must collect sales taxes on items consumers purchase because
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it has facilities in the state of Texas.
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So-called "sin taxes" are levies placed on
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alcohol, mixed drinks, and tobacco.
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The state of Texas provides workers compensation under monies collected from
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payroll taxes.
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The unemployment compensation system is supported by
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a payroll tax.
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Which of the following classes of corporations has the least business tax burden?
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Banking companies
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Most taxes in Texas are administered by the
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comptroller of public accounts.
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Where does Texas rank among the states in the tax burden on its citizens?
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Near the bottom
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A state tax levied on a natural resource taken from the earth is the
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severance tax.
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If someone fails to claim their prize from the Texas Lottery within 180 days after a drawing the money is used to fund
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hospitals for indigent care.
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Grants-in-aid are defined as
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money from the federal government to the state.
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Which state program in Texas does not receive substantial federal funding?
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Teacher retirement
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As a result of a lawsuit filed by the State of Texas over tobacco related illnesses, the American tobacco industry must pay
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$18 billion in damages.
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The largest share of public land revenue in Texas is derived from
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oil lease fees and royalties.
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The investment of state funds is currently handled by the
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comptroller of public accounts.
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In order for Texas to increase its bond debt, approval must be given by the
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voters of Texas.
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A bond whose repayment is guaranteed by the full faith and credit of the state is a
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general obligation bond.
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Texas may accrue state debt when it
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issues general obligation or revenue bonds.
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Another name for the state's Economic Stabilization Fund is the
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"rainy day" fund.
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The state's Economic Stabilization Fund is
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sometimes called the "rainy day" fund.
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. The fiscal biennium in Texas begins on
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September 1 of odd-numbered years.
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Unlike the federal budget, a budget passed by the Texas legislature
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authorizes spending for a two-year period.
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Arguably the most influential budgeting organization in Texas is the
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Legislative Budget Board.
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The "dual budgeting" system in Texas means that both
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the governor and the legislature draw up budget proposals.
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In Texas, projected revenue levels are provided to the governor and legislature by the
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state comptroller of public accounts.
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After the legislature approves a biennial budget, the governor cannot sign it until
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the comptroller certifies the state will collect sufficient revenue to cover the expenditures.
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Approximately what percentage of state expenditures goes to all education funding in Texas?
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35-40 percent
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Approximately what percentage of state expenditures goes to Health and Human Services funding?
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45-50 percent
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The second largest single expenditure item by functional class of the Texas government is
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public elementary and secondary education.
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Most major agency purchases are made through or are supervised by the
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Texas Procurement and Support Services.
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Which of the following task(s) does the comptroller's office oversee?
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Issuing checks to pay state obligations
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Which agency takes reservations for football tailgating on state property in Austin?
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The Texas Facilities Commission
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State accounts are audited under the direct supervision of the
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state auditor.
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The state auditor is appointed by and serves at the will of the
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Legislative Audit Committee.
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Which of the following determines if state agencies have spent public funds in accordance with law?
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The State Auditor's Office
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What amount of state funding for public schools is provided by the Foundation School Fund?
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More than 70 percent
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The Robin Hood Plan is an attempt to equalize funding among
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public schools.
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Which factor will increase the state's outcomes-based funding to a community college?
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An increase in the number of students successfully completing courses
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Which area of the state is home to the newest regional comprehensive university?
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The Rio Grande Valley
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The state's largest financial aid program is the
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Texas Grant Program (Toward Excellence, Access, and Success).
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Parents may lock in the cost of future tuition and fees at a state university or college through
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Texas Tomorrow Fund.
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Compared to the rest of the nation, the number of children without health insurance coverage in Texas is
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the highest.
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The program acronym CHIP stands for
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Children's Health Insurance Program.
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The problem with denying CHIP benefits to children is that it involves
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a reduction of federal money to the state.
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Which statement best characterizes the status of Texas highways?
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Large sums of money are currently needed for highway repair and maintenance.
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The "toilet-to-tap" program describes
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the recycling of toilet water for human consumption.
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According to the Texas Transportation Commission, the newest means of financing Texas highways is the use of
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money collected from tolls.