Why must the Texas legislature maintain a balanced budget?
It is required by the Texas constitution
Prior to 2003, tuition for public colleges and universities in Texas was set by
The state legislature
Prior to 2003, tuition rates for public colleges and universities in Texas tended to be
low compared to other states
… which source of university revenue began to increase most rapidly?
student tuition and fees
Federal funds appropriated in Texas generally are
concentrated on a few state agencies
Texas spending on a per capita basis is
much lower than the national average
…Which statement regarding revenue sources for the state of Texas is true?
Texas has no income tax but high sales tax
Which is the single largest source of tax revenue for the state of Texas?
What determines the amount of tax revenue generated from oil and natural gas produced in Texas?
Market price and the amount produced
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
Who pays the greatest portion of their income in property taxes?
Poor homeowners and renters
Which of the following are not generally considered to be an example of regressive taxes or fees?
What is the argument commonly used by supporters of a state income tax?
It is a fairer and more reliable source of revenue
If Texas instituted a progressive income tax
Low income Texans would pay a lower tax rate than wealthy Texans
Texas will not implement a state income tax in the immediate future because
The voters would not approve the measure
Federal matching funds are
Awarded to states that agree to fund a federal program on behalf of their own citizens
Which statement regarding state federal spending in Texas is true?
Texas spends less on state federal programs than most states do
Which statement concerning matching funds in Texas is true?
Texas has historically participated in matching funds at a relatively low rate
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 by large numbers of people from all social classes
The main purpose of the Permanent School Fund is to
Fund primary and secondary schools in the state
Which of the following agencies is responsible for managing the Permanent School fund?
The Texas Board of Education
The funds generated by the Permanent School Fund are distributed to school districts across the state
based on attendance rates
The National Research University Fund was established through a constitutional amendment to provide a source of funding for
Universities seeking to achieve national prominent as research institutions
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
Which of the following is at the heart of the budget process in Texas?
The Texas Comptroller
…The primary player in the budget is
the purpose of the Biennial Revenue Estimate is to
provide a detailed forecast of total revenues that the state is expected to take in
Who prepared the BRE?
Who certifies the state budget of Texas?
____ monitors state agencies to ensure that they comply with the state budget
The LBB, in conjunction with the State Auditor’s Office
Which two factors caused the bubble in the real estate market?
Low interest rate and loose credit standards
… Legislators seeking to balance the budget are left with
few choices as to how to balance the budget
Federal money is an important part of the Texas budget. Money that Texas receives from the federal government
often comes with strings attached, which is mainly that Texas must spend a certain amount of their money before the federal money will be given
Which phrase best characterizes Texas’s reputation in terms of taxes and services?
low tax, low service
Next to revenue generated by state taxes, the second largest source of state revenue comes from
the federal government
The Permanent School Fund was created in
The Economic Stabilization Fund is commonly known as the
Rainy Day Fund
The Permanent University Fund was established in 1876 with a land grant of 1 million acres. It contributes to the support of
The University of Texas and Texas A&M university systems
The Texas Constitution specifies that state payments for assistance to needy children and their caretakers shall not exceed___ percent of the states’ budget in any biennium
The Legislative Budget Board is chaired by the
Who prepared the Biennial Review Estimate?
When there is disagreement on the two versions of the bill, the bill goes to ___ to work out the differences
In Texas, the governor’s line item veto power is
Very powerful because the governor can use it to limit expenditures
When compared to the rest of the nation, the real estate collapse in Texas was
To address the budget shortfall in the 2012-2013 budget, the most common tactic used by the legislature was
Just as the economy began to improve and state revenues started increasing, a new threat arose to threaten the newly balanced budget. It was the
Increasing health care costs due to recent efforts to reform the health care system.. Obamacare
Which of the following statements is true?
The legislative session was particularly difficult because the Great Recession had significantly decreased state revenue
Taking into account increasing Medicaid and school district funding, the general revenue shortfall for the 2012-2013 biennium budget was
between 24 and 27 billion
The Texas Legislature increased ___ to help compensate for lower property tax revenues in the 2012-2013 budget cycle.
State corporate franchise taxes and cigarette taxes
What action forced the legislature to bring the 2012-2013 state budget into balance?
A special session of the Texas legislature voted for a balanced budget
From an overall standpoint, which statement is true?
The Texas economy is closely tied to the national economy