question

1. What did the UT System Board of Regents decide in May 2014? 348

answer

Not to raise tuition for in-state students, provisions to raise out-of-state tuition, that the Board allocate monies to UT Austin from the state's Permanent University Fund, and that universities were allowed to approve optional four-year fixed tuition programs

question

2. Prior to 2003, who set the tuition for public colleges and universities in Texas? 347

answer

State legislature

question

3. Prior to 2003, how would you describe tuition rates for public colleges and universities in Texas?

answer

Very low

question

4. Following a legislative decision in 2003 to reduce state funding to higher education, which source of university revenue began to increase most rapidly?

answer

Student tuition and fees

question

5. Why must the Texas legislature maintain a balanced budget?

answer

The state constitution mandates a balanced budget

question

6. Describe General Revenue-Dedicated Funds

answer

Budget for a non dedicated revenue account that functions as the state's primary operating fund

question

8. Federal money is an important part of the Texas budget, but monies that Texas receives from the federal government (complete) __?

answer

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

question

10. What reputation does Texas have? 351

answer

Low service, low tax state

question

11. Texas seeks to maintain a favorable environment for (complete) __?

answer

Businesses

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12. How much is Texas spending on a per capita? 354

answer

$1,000

question

13. In 2012, how did Texas rank when compared to other states on the per capital federal dollars?

answer

46

question

14. Is there is a high sales tax in Texas? What is the __ percent? 355

answer

High; 6.25%

question

15. Which is the single largest source of tax revenue for the state of Texas? 355

answer

Sales tax

question

16. According to our text, what determines the amount of tax revenue generated from oil and natural gas produced in Texas? 356

answer

Price and amount produced

question

17. The revenues flowing from the motor fuels tax are dedicated to (what) __? 356

answer

Construction, maintenance, policing of public roads, and public education

question

18. Overall, what does the tax system in Texas generally considered to be__? which means __? 358

answer

Regressive. Which means that the tax burden in the state falls more heavily on lower-income individuals

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19. Who pays the greatest portion of their income in property taxes? 358

answer

Poor homeowners and renters

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20. What generally are considered to be an example of regressive taxes or fees?

answer

Sales and use taxes

question

21. What is the argument commonly used by supporters of a state income tax?

answer

Supporters argued that not only is the income tax a more reliable source of revenue for the state, it can also be made fairer

question

22. If Texas instituted a progressive income tax, what would happen __?

answer

The people with lower income will pay a lower tax rate than people with high income

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23. Texas will never have a personal income tax in the future, why __?

answer

Few politicians have been willing to support an income tax. One of the attractive features of Texas to business has always been the absence of an income tax. An amendment was passed in 1993 that required voter approval of any personal income tax and that funds raised under the tax be used to support public education.

question

24. Next to revenue generated by state taxes, where does the second-largest source of state revenue come from? 360

answer

The federal government

question

25. In addition to federal monies, which two other sources in recent years have had a major impact on monies flowing into the state budget? 360

answer

Lottery (1991) and tobacco settlement (1998)

question

26. Describe federal matching funds 360

answer

Federal monies going to a state based on state spending for a program

question

27. What is true regarding state-federal spending in Texas? 360

answer

Texas spends relatively little, compared with other states, for state-federal programs. As a result, federal grants and matching funds also have been low

question

28. What is true statement concerning matching funds in Texas? 360

answer

Texas has historically participated in matching funds at a relatively low rate

question

29. Authorized by voters in 1991, the Texas state lottery generates a sizeable sum for the state budget. What is true statement regarding the Texas lottery? 360

answer

The lottery is played by large numbers of people from all social classes

question

30. The Permanent School Fund distributes money to school districts across the state based on what two factors. List them?

answer

Attendance and etc.

question

31. When (in what year) was the Permanent School Fund created? 362

answer

1854

question

32. What is the main purpose of the Permanent School Fund? 362

answer

To fund primary and secondary schools

question

33. What entity determines how much money is available to public education through the Permanent School Fund? 362

answer

The State Board of Education

question

34. Available School Fund (definition)? 362

answer

Dedicated fund established by the constitution for the support of public education in the state

question

35. What is another name for "Economic Stabilization Fund"? 362

answer

Rainy Day Fund

question

36. The Permanent University Fund was established in 1876 with a land grant of 1 million acres. It contributes to the support of (what) __? 365

answer

Most institutions in the University of Texas (UT) and Texas A&M University systems

question

37. What was the purpose for the establishment of the National Research University Fund? 365

answer

To provide a source of funding for universities seeking to achieve national prominence as research institutions

question

38. For universities to be eligible for the National Research University Fund they must meet certain criteria. List them. 365

answer

Maintain an endowment of at least $400 million in two preceding academic year. Produce 200 Ph.D. degrees during previous two years. Have a freshman class of high academic achievement. Be designated as a member of the Association of Research Libraries, have a Phi Beta Kappa. Have a certain number of tenured faculty who have demonstrated excellence by winning a Nobel prize or other prestigious fellowships, or have been elected to one of the National Academies. Have a demonstrable excellence in graduate education

question

39. What is one significant component of the budget process that is relatively unique to Texas? 366

answer

Pay-as-you-go limit (Article 3, Section 49a)

question

40. Who is at the heart of the budget process in Texas? 366

answer

The comptroller

question

41. What percent of the state budget that Texas Constitution specifies for assistance to needy children and their caretakers? 366

answer

1%

question

42. In theory, Texas has a dual-budget system, meaning the budget authority is shared by the governor and the legislature; however, in practice, who is (are) the primary player(s) in the budget? 369

answer

The legislature

question

43. Who are key players in the budgetary process? 370

answer

The Legislative Budget Board (LBB), the governor and the Governor's Office of Budget, Planning, and Policy (GOBPP), and the comptroller of public accounts

question

44. What is the purpose of the Biennial Revenue Estimate?

answer

Detailed forecast of the total revenue that the state is expected to take in over the biennium

question

45. Nationally, what two factors caused the bubble in the real estate market?

answer

Low interest rates supported by the Federal Reserve policy and loose credit standards

question

46. During the 2011 session, why was this legislative session particularly difficult? 373

answer

The legislative session was particularly difficult because of the budgetary choices that would have to be faced due to the Great Recession. For 2 years, Texas had dodged the worst effects of the Great Recession. But in 2011, hard decisions were going to have to be made to balance the budget.

question

47. When compared to the rest of the nation, how was the real estate collapse in Texas?

answer

Less severe

question

48. To help compensate for lower property tax revenue in the 2012-2013 budget cycle, what action the Texas legislature took?

answer

Increase the state corporate franchise tax and the cigarette tax

question

49. What action forced the legislature to bring the 2012-2013 state budget into balance?

answer

A special session of the Texas legislature voted for a balanced budget

question

50. To address the budget shortfall in the 2012-2013 budget, what was the most common tactic used by the legislature? 375

answer

Reducing spending

question

51. According to the text, just as the economy began to improve and state revenues started increasing, what was the new threat that arose to threaten the newly balanced budget?

answer

Increasing healthcare costs due to recent efforts to reform the health care system

question

52. From an overall standpoint, what is a relationship between the Texas and the national economy?

answer

TX economy is closely tied to the national economy

Chapter 11- Public Finance in Texas – Flashcards

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