Question 1

Overall, the tax system in Texas is generally considered to be regressive, which means that

Accepted Answer

A)  the tax burden consumes a greater percentage of income received by lower-income individuals. 
B)  the tax burden consumes a greater percentage of the income earned by higher-income individuals. 
C)  everybody pays the same percent of the their income in taxes. 
D)  the more income you have, the larger the percentage of it that goes to pay taxes. 
E)  higher-income individuals pay progressively more taxes based on their incomes. 
A)  the tax burden consumes a greater percentage of income received by lower-income individuals. 
B)  the tax burden consumes a greater percentage of the income earned by higher-income individuals. 
C)  everybody pays the same percent of the their income in taxes. 
D)  the more income you have, the larger the percentage of it that goes to pay taxes. 
E)  higher-income individuals pay progressively more taxes based on their incomes.

Question 2

The process of drafting a bill is referred to as

Accepted Answer

A)  enrollment. 
B)  introduction. 
C)  markup. 
D)  referral. 
E)  filibustering. 
A)  enrollment. 
B)  introduction. 
C)  markup. 
D)  referral. 
E)  filibustering.

Question 3

Discuss three of the five budgetary categories that are part of the budget process in Texas.

Accepted Answer

In Texas, the budget process includes se

Question 4

Why must the Texas legislature maintain a balanced budget?

Accepted Answer

A)  It is required by the U.S. Constitution. 
B)  It is required by the Texas Constitution. 
C)  Each legislative session decides to balance or not balance the state budget. 
D)  The Texas Office of the Comptroller writes the state budget. 
E)  Prior to assuming office, politicians in Texas swear an oath to balance the budget. 
A)  It is required by the U.S. Constitution. 
B)  It is required by the Texas Constitution. 
C)  Each legislative session decides to balance or not balance the state budget. 
D)  The Texas Office of the Comptroller writes the state budget. 
E)  Prior to assuming office, politicians in Texas swear an oath to balance the budget.

Question 5

In Texas, the governor's line item veto power is

Accepted Answer

A)  prohibited by the state constitution. 
B)  meaningless because the legislature can override it with a simple majority vote. 
C)  very powerful because the governor can use it to limit expenditures. 
D)  meaningless because before the governor can use it, he or she must obtain approval of the comptroller. 
E)  The line-item veto can only be used when the governor and the LBB agree upon the veto. 
A)  prohibited by the state constitution. 
B)  meaningless because the legislature can override it with a simple majority vote. 
C)  very powerful because the governor can use it to limit expenditures. 
D)  meaningless because before the governor can use it, he or she must obtain approval of the comptroller. 
E)  The line-item veto can only be used when the governor and the LBB agree upon the veto.

Question 6

Federal expenditures play an important role in the Texas state budget.

Accepted Answer

A) True 
 B)False

Question 7

In ${\text{West Orange-Cove Consolidated ISD v. Neely}}$, the Texas Supreme Court ruled that school districts had adequate discretion to set tax rates within their jurisdictions.

Accepted Answer

A) True 
 B)False

Question 8

When compared to the rest of the nation, the real estate collapse in Texas was

Accepted Answer

A)  more severe. 
B)  less severe. 
C)  remedied by low property tax rates. 
D)  about the same as the national trend. 
E)  caused primarily by increased production of oil and natural gas. 
A)  more severe. 
B)  less severe. 
C)  remedied by low property tax rates. 
D)  about the same as the national trend. 
E)  caused primarily by increased production of oil and natural gas.

Question 9

The Economic Stabilization Fund (ESF) is commonly known as the

Accepted Answer

A)  bailout for poorly managed school districts. 
B)  fund to take advantage of economic opportunity for investments in Texas. 
C)  Rainy Day Fund. 
D)  Too-big-to-fail Fund. 
E)  fund to stabilize the price of oil and gas. 
A)  bailout for poorly managed school districts. 
B)  fund to take advantage of economic opportunity for investments in Texas. 
C)  Rainy Day Fund. 
D)  Too-big-to-fail Fund. 
E)  fund to stabilize the price of oil and gas.

Question 10

Who certifies the state budget of Texas?

Accepted Answer

A)  the governor 
B)  the legislature 
C)  the chair of the LBB 
D)  the comptroller 
E)  the Speaker of the House and the lieutenant governor 
A)  the governor 
B)  the legislature 
C)  the chair of the LBB 
D)  the comptroller 
E)  the Speaker of the House and the lieutenant governor

Question 11

Which of the following statements is true?

Accepted Answer

A)  During the 2011 legislative session, it became apparent that the booming state economy had dramatically increased state revenues. 
B)  The effects of the Great Recession did not reach Texas, as the state enjoyed surplus revenues. 
C)  The legislative session was particularly difficult because the Great Recession had significantly reduced state revenue. 
D)  The Texas legislature did not meet in 2011. 
E)  Resulting from the effects of the 2011 economic recession, the state budget deficit equals GDP. 
A)  During the 2011 legislative session, it became apparent that the booming state economy had dramatically increased state revenues. 
B)  The effects of the Great Recession did not reach Texas, as the state enjoyed surplus revenues. 
C)  The legislative session was particularly difficult because the Great Recession had significantly reduced state revenue. 
D)  The Texas legislature did not meet in 2011. 
E)  Resulting from the effects of the 2011 economic recession, the state budget deficit equals GDP.

Question 12

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

Accepted Answer

A)  gasoline taxes 
B)  student tuition and fees 
C)  general revenues 
D)  state income tax 
E)  Texas state lottery revenues 
A)  gasoline taxes 
B)  student tuition and fees 
C)  general revenues 
D)  state income tax 
E)  Texas state lottery revenues

Question 13

Which phrase best characterizes Texas's reputation in terms of taxes and services?

Accepted Answer

A)  high tax, low service 
B)  low service, low tax 
C)  high tax, high service 
D)  no tax and all services 
E)  Despite its reputation, Texas's tax and service rates exceed the national averages. 
A)  high tax, low service 
B)  low service, low tax 
C)  high tax, high service 
D)  no tax and all services 
E)  Despite its reputation, Texas's tax and service rates exceed the national averages.

Question 14

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

Accepted Answer

A)  the minimum wage and unemployment rate 
B)  market price and the amount produced 
C)  federal regulations and excise taxes imposed by the federal government 
D)  pipeline construction and environmental issues 
E)  refinery capacity and foreign competition 
A)  the minimum wage and unemployment rate 
B)  market price and the amount produced 
C)  federal regulations and excise taxes imposed by the federal government 
D)  pipeline construction and environmental issues 
E)  refinery capacity and foreign competition

Question 15

Prior to 2003, tuition for public colleges and universities in Texas was set by

Accepted Answer

A)  the Board of Education. 
B)  the state Department of Education. 
C)  the governor's Department of Education. 
D)  the state legislature. 
E)  the federal government. 
A)  the Board of Education. 
B)  the state Department of Education. 
C)  the governor's Department of Education. 
D)  the state legislature. 
E)  the federal government.

Question 16

Explain the strengths and weaknesses of the budgetary process in Texas.

Accepted Answer

The answer of Explain the strengths and weaknesses of the...

Question 17

From an overall standpoint, which statement is true?

Accepted Answer

A)  The Texas economy is closely tied to the national economy. 
B)  The Texas economy is largely immune to the national economy. 
C)  The Texas economy is much larger than the national economy. 
D)  The Texas budget cycle effectively insulates the state economy from the rest of the world. 
E)  Oil and natural gas production within the state's borders generate over two-thirds of state tax revenue. 
A)  The Texas economy is closely tied to the national economy. 
B)  The Texas economy is largely immune to the national economy. 
C)  The Texas economy is much larger than the national economy. 
D)  The Texas budget cycle effectively insulates the state economy from the rest of the world. 
E)  Oil and natural gas production within the state's borders generate over two-thirds of state tax revenue.

Question 18

The tax revenue projections of the LBB have been uniformly accurate regardless of changes in the economy in recent years.

Accepted Answer

A) True 
 B)False

Question 19

To address the budget shortfall in the 2012-2013 budget, the most common tactic used by the legislature was

Accepted Answer

A)  raising tax rates. 
B)  borrowing from the federal government. 
C)  spending cuts. 
D)  a newly implemented income tax. 
E)  a brand new source of revenue derived from underground fracking. 
A)  raising tax rates. 
B)  borrowing from the federal government. 
C)  spending cuts. 
D)  a newly implemented income tax. 
E)  a brand new source of revenue derived from underground fracking.

Question 20

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

Accepted Answer

A)  business owners 
B)  wealthy homeowners and renters 
C)  poor homeowners and renters 
D)  renters 
E)  Everybody pays the same. 
A)  business owners 
B)  wealthy homeowners and renters 
C)  poor homeowners and renters 
D)  renters 
E)  Everybody pays the same.

Overall, the tax system in Texas is generally considered to be regressive, which means that

The process of drafting a bill is referred to as

Discuss three of the five budgetary categories that are part of the budget process in Texas.

Why must the Texas legislature maintain a balanced budget?

In Texas, the governor's line item veto power is

Federal expenditures play an important role in the Texas state budget.

In ${\text{West Orange-Cove Consolidated ISD v. Neely}}$ , the Texas Supreme Court ruled that school districts had adequate discretion to set tax rates within their jurisdictions.

When compared to the rest of the nation, the real estate collapse in Texas was

The Economic Stabilization Fund (ESF) is commonly known as the

Who certifies the state budget of Texas?

Which of the following statements is true?

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

Which phrase best characterizes Texas's reputation in terms of taxes and services?

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

Prior to 2003, tuition for public colleges and universities in Texas was set by

Explain the strengths and weaknesses of the budgetary process in Texas.

From an overall standpoint, which statement is true?

The tax revenue projections of the LBB have been uniformly accurate regardless of changes in the economy in recent years.

To address the budget shortfall in the 2012-2013 budget, the most common tactic used by the legislature was

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

The Political Culture, People, and Economy of Texas

Texas and the Nation

The Texas Constitution

Political Parties in Texas

Elections in Texas

Interest Groups and Lobbying

The Texas Legislature

The Texas Executive Branch

The Texas Judiciary

Crime and Corrections Policy

Public Policy in Texas

Local Government in Texas

Filters

Exam 11: Public Finance in Texas

Overall, the tax system in Texas is generally considered to be regressive, which means that

The process of drafting a bill is referred to as

Discuss three of the five budgetary categories that are part of the budget process in Texas.

Why must the Texas legislature maintain a balanced budget?

In Texas, the governor's line item veto power is

Federal expenditures play an important role in the Texas state budget.

In West Orange-Cove Consolidated ISD v. Neely{\text{West Orange-Cove Consolidated ISD v. Neely}}West Orange-Cove Consolidated ISD v. Neely , the Texas Supreme Court ruled that school districts had adequate discretion to set tax rates within their jurisdictions.

When compared to the rest of the nation, the real estate collapse in Texas was

The Economic Stabilization Fund (ESF) is commonly known as the

Who certifies the state budget of Texas?

Which of the following statements is true?

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

Which phrase best characterizes Texas's reputation in terms of taxes and services?

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

Prior to 2003, tuition for public colleges and universities in Texas was set by

Explain the strengths and weaknesses of the budgetary process in Texas.

From an overall standpoint, which statement is true?

The tax revenue projections of the LBB have been uniformly accurate regardless of changes in the economy in recent years.

To address the budget shortfall in the 2012-2013 budget, the most common tactic used by the legislature was

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

The Political Culture, People, and Economy of Texas

Texas and the Nation

The Texas Constitution

Political Parties in Texas

Elections in Texas

Interest Groups and Lobbying

The Texas Legislature

The Texas Executive Branch

The Texas Judiciary

Crime and Corrections Policy

Public Policy in Texas

Local Government in Texas

Filters

In ${\text{West Orange-Cove Consolidated ISD v. Neely}}$ , the Texas Supreme Court ruled that school districts had adequate discretion to set tax rates within their jurisdictions.