TX GOV Ch. 11

Overall, the tax system in Texas is generally considered to be regressive, which means that 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 tax burden consumes a greater percentage of the income earned by higher-income individuals.

The Texas economy is tied to the booms and busts of the national economy. True False

Under Texas's budgetary system, there is NO power to shift monies between agencies or programs when the legislature in NOT in session. True False

Prior to 2003, tuition rates for public colleges and universities in Texas tended to be low compared to other states. slightly above the national average. slightly below the national average. much higher than the national average, because Texas has no state income tax.

The Permanent School Fund is managed primarily by what entity? the State Board of Education a Blue Ribbon Committee on Education the governor the Texas Higher Coordinating Board

Given the budget structure and constitutional limitations on spending and taxing, legislators seeking to balance the budget are left with only one choice as to how to balance the budget. many choices as to how to balance the budget. few choices as to how to balance the budget. no other option than to borrow heavily, thereby increasing state debt.

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

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

The Legislative Budget Board plays an important role in the budget process in Texas. True False

Which of the following is at the heart of the budget process in Texas? the Permanent University Fund the Texas Education Commission the Texas Higher Education Coordination Board the Texas comptroller

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 towards health care. the unpredictability of natural disaster funding. a federal budget cycle that complicates the state budgeting process.

In 2003, state political leaders found themselves staring at a $10 billion shortfall in the upcoming budget period. One way to close the budget gap without raising taxes was to allocate monies to UT Austin from the state's Permanent University Fund. to allow universities the option to approve a four-year fixed tuition program. to allocate monies to other Texas schools from the Available University Fund. to cut higher education funding.

Which factor(s) related to public finance will work against a return to highly regulated tuition and fees? State political leaders want costs held down, but few want to return all decision making about tuition back to the legislature. The legislature has been unwilling to allocate more general revenue monies directly to fund higher education, even in an era of rapidly escalated costs in the industry. Most political leaders recognized that if Texas wants to build high-quality universities, someone has to pay for them. All of these are correct.

Texas spending on a per capita basis is much higher than the national average. much lower than the national average. among the highest, particularly in education. about even with the national average.

The Rainy Day Fund is more properly known as the National Research University Fund. True False

In a comparison of the 15 most populous states, where did Texas rank in the amount of revenue raised per $1,000 of personal income? It was the median. highest near the highest near the lowest

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. True False

From an overall standpoint, which statement is true? The Texas economy is largely immune to the national economy. The Texas economy is closely tied to the national economy. The Texas budget cycle effectively insulates the state economy from the rest of the world. The Texas economy is much larger than the national economy.

Who pays the greatest portion of their income in property taxes? poor homeowners and renters business owners wealthy homeowners and renters renters

Texas is one of a handful of states that does NOT have a state income tax. True False

What determines the amount of tax revenue generated from oil and natural gas produced in Texas? the minimum wage and unemployment rate market price and the amount produced pipeline construction and environmental issues federal regulations and excise taxes imposed by the federal government

In addition to the state sales tax of 6.25 percent, county, city, and metropolitan transit authorities are allowed to impose an additional 2 percent sales tax. True False

What is the most important single tax financing Texas government? income property sales gasoline

Texas's 6.25 percent sales tax is the highest in the nation. True False

The news segment discusses the estimated income of the state of Texas and its expenditures. Such an estimate is called a budget. fiscal probity. fiscal governance. an appropriation.

The news segment mentions sales taxes, business taxes, and taxes on the production and regulation of oil and gas as the most important sources of state revenue. Other important sources of state revenue include franchise taxes, tobacco taxes, and taxes on motor vehicle sales and rentals. state income taxes and utility taxes. property taxes. customs duties.