Government 2 Chapter 11 – Flashcards
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Why must the Texas legislature maintain a balanced budget?
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It is required by the Texas constitution
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Prior to 2003, tuition for public colleges and universities in Texas was set by
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The state legislature
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Prior to 2003, tuition rates for public colleges and universities in Texas tended to be
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low compared to other states
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... which source of university revenue began to increase most rapidly?
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student tuition and fees
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Federal funds appropriated in Texas generally are
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concentrated on a few state agencies
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Texas spending on a per capita basis is
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much lower than the national average
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...Which statement regarding revenue sources for the state of Texas is true?
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Texas has no income tax but high sales tax
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Which is the single largest source of tax revenue for the state of Texas?
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Sales
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What determines the amount of tax revenue generated from oil and natural gas produced in Texas?
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Market price and the amount produced
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The tax system in Texas is generally considered to be regressive, which means that
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the tax burden consumes a greater percentage of income received by lower-income individuals
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Who pays the greatest portion of their income in property taxes?
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Poor homeowners and renters
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Which of the following are not generally considered to be an example of regressive taxes or fees?
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Income taxes
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What is the argument commonly used by supporters of a state income tax?
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It is a fairer and more reliable source of revenue
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If Texas instituted a progressive income tax
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Low income Texans would pay a lower tax rate than wealthy Texans
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Texas will not implement a state income tax in the immediate future because
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The voters would not approve the measure
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Federal matching funds are
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Awarded to states that agree to fund a federal program on behalf of their own citizens
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Which statement regarding state federal spending in Texas is true?
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Texas spends less on state federal programs than most states do
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Which statement concerning matching funds in Texas is true?
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Texas has historically participated in matching funds at a relatively low rate
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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?
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The lottery is played by large numbers of people from all social classes
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The main purpose of the Permanent School Fund is to
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Fund primary and secondary schools in the state
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Which of the following agencies is responsible for managing the Permanent School fund?
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The Texas Board of Education
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The funds generated by the Permanent School Fund are distributed to school districts across the state
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based on attendance rates
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The National Research University Fund was established through a constitutional amendment to provide a source of funding for
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Universities seeking to achieve national prominent as research institutions
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One significant component of the budget process that is relatively unique to Texas is
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The constitutional mandate that Texas legislators write a budget every two years
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Which of the following is at the heart of the budget process in Texas?
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The Texas Comptroller
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...The primary player in the budget is
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the legislature
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the purpose of the Biennial Revenue Estimate is to
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provide a detailed forecast of total revenues that the state is expected to take in
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Who prepared the BRE?
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The comptroller
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Who certifies the state budget of Texas?
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The comptroller
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____ monitors state agencies to ensure that they comply with the state budget
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The LBB, in conjunction with the State Auditor's Office
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Which two factors caused the bubble in the real estate market?
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Low interest rate and loose credit standards
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... Legislators seeking to balance the budget are left with
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few choices as to how to balance the budget
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Federal money is an important part of the Texas budget. Money that Texas receives from the federal government
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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
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Which phrase best characterizes Texas's reputation in terms of taxes and services?
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low tax, low service
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Next to revenue generated by state taxes, the second largest source of state revenue comes from
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the federal government
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The Permanent School Fund was created in
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1854
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The Economic Stabilization Fund is commonly known as the
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Rainy Day Fund
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The Permanent University Fund was established in 1876 with a land grant of 1 million acres. It contributes to the support of
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The University of Texas and Texas A&M university systems
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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
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1
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The Legislative Budget Board is chaired by the
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Lieutenant Governor
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Who prepared the Biennial Review Estimate?
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The comptroller
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When there is disagreement on the two versions of the bill, the bill goes to ___ to work out the differences
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Conference committee
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In Texas, the governor's line item veto power is
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Very powerful because the governor can use it to limit expenditures
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When compared to the rest of the nation, the real estate collapse in Texas was
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less severe
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To address the budget shortfall in the 2012-2013 budget, the most common tactic used by the legislature was
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reducing spending
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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
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Increasing health care costs due to recent efforts to reform the health care system.. Obamacare
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Which of the following statements is true?
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The legislative session was particularly difficult because the Great Recession had significantly decreased state revenue
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Taking into account increasing Medicaid and school district funding, the general revenue shortfall for the 2012-2013 biennium budget was
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between 24 and 27 billion
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The Texas Legislature increased ___ to help compensate for lower property tax revenues in the 2012-2013 budget cycle.
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State corporate franchise taxes and cigarette taxes
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What action forced the legislature to bring the 2012-2013 state budget into balance?
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A special session of the Texas legislature voted for a balanced budget
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From an overall standpoint, which statement is true?
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The Texas economy is closely tied to the national economy
