Exam 10: The State Economy and the Financing of State Government

The current strategy by the national government is to increase the amount of federal aid flowing to the states.

Almost one-half of the state's revenue comes from:

The Comptroller of Public Accounts must certify the budget passed by the legislature before it can go to the governor.

The Texas economy was initially based on:

Before the state of Texas can borrow money on the credit of the state, what must happen?

Historically, the Texas economy was based on natural resources such as oil, land, and water.

Sales of lottery tickets now fund about ten percent of the Texas budget.

Taxes create over three-quarters of the revenue necessary to fund the Texas budget.

Privatization is a name given to the practice of having governmental activities conducted by corporate rather than governmental employees.

Since 1990, after adjusting for inflation and population growth, the budget of Texas has:

The final version of the appropriations bill is written by a conference committee appointed by the presiding officers of the Texas legislature.

A severance tax is a tax levied on natural resources which are removed from the earth.

The function which received the majority of federal funds is

The tax structure of Texas is complicated by the fact that the poor pay a greater percentage of their income in taxes than do the wealthy in Texas.

Taxes on tobacco and alcoholic beverages are generally listed as

The entity that take the lead in formulating the budget for the state government during the planning phase is the

A fair tax structure is a value associated with a democratic government.

A regressive tax is one that

What functions require the most revenue in Texas? How does Texas rank with other states in per capita spending on education and highways?

Texas spends more on education per capita than most other major urban states.