Question 1

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

Accepted Answer

A) True 
 B)False

Question 2

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 3

Texas will never have a personal income tax in the future because

Accepted Answer

A)  Bullock proposed a constitutional amendment that effectively gave the electorate a veto over any proposal for an income tax. 
B)  Bullock vetoed a bill proposing a state income tax. 
C)  former governor John Connally and then-governor Ann Richards were against the idea. 
D)  county commissioners must approve the personal income tax amendment, which is unlikely. 
E)  the federal government must approve the personal income tax amendment, which is unlikely. 
A)  Bullock proposed a constitutional amendment that effectively gave the electorate a veto over any proposal for an income tax. 
B)  Bullock vetoed a bill proposing a state income tax. 
C)  former governor John Connally and then-governor Ann Richards were against the idea. 
D)  county commissioners must approve the personal income tax amendment, which is unlikely. 
E)  the federal government must approve the personal income tax amendment, which is unlikely.

Question 4

Under Texas's budgetary system, there is NO power to shift monies between agencies or programs when the legislature in NOT in session.

Accepted Answer

A) True 
 B)False

Question 5

Which of the following is at the heart of the budget process in Texas?

Accepted Answer

A)  the lieutenant governor 
B)  the Texas Higher Education Coordination Board 
C)  the Texas comptroller 
D)  the Texas Education Commission 
E)  unions 
A)  the lieutenant governor 
B)  the Texas Higher Education Coordination Board 
C)  the Texas comptroller 
D)  the Texas Education Commission 
E)  unions

Question 6

The Permanent School Fund was created in

Accepted Answer

A)  1854. 
B)  1932. 
C)  1996. 
D)  2001. 
E)  2010. 
A)  1854. 
B)  1932. 
C)  1996. 
D)  2001. 
E)  2010.

Question 7

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

Question 8

The Texas Constitution specifies that state payments for assistance to needy children and their caretakers shall NOT exceed ________ percent of the state's budget in any biennium.

Accepted Answer

A)  1 
B)  15 
C)  25 
D)  40 
E)  There is no limit. 
A)  1 
B)  15 
C)  25 
D)  40 
E)  There is no limit.

Question 9

In addition to the state sales tax of 6.25 percent, county, city, and metropolitan transit authorities are allowed to impose an additional 2 percent sales tax.

Accepted Answer

A) True 
 B)False

Question 10

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

Accepted Answer

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

Question 11

One significant component of the budget process that is relatively unique to Texas is

Accepted Answer

A)  the constitutional mandate that Texas legislators write a budget every two years. 
B)  that, relative to other states, the rate of Texas employment and economic growth is extremely volatile. 
C)  a federal budget cycle that complicates the state budgeting process. 
D)  the unpredictability of natural disaster funding. 
E)  the governor's political agenda, which is influenced by election results. 
A)  the constitutional mandate that Texas legislators write a budget every two years. 
B)  that, relative to other states, the rate of Texas employment and economic growth is extremely volatile. 
C)  a federal budget cycle that complicates the state budgeting process. 
D)  the unpredictability of natural disaster funding. 
E)  the governor's political agenda, which is influenced by election results.

Question 12

Can Texas control spending when citizens are reluctant to see so many services cut?

Accepted Answer

Texas, like any state, faces the challen

Question 13

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

Question 14

Given the budget structure and constitutional limitations upon spending and taxing, legislators seeking to balance the budget are left with

Accepted Answer

A)  many choices as to how to balance the budget. 
B)  few choices as to how to balance the budget. 
C)  only one choice as to how to balance the budget. 
D)  no other option than to borrow heavily, thereby increasing state debt. 
E)  This issue is not discussed in the text and is therefore of no consequence. 
A)  many choices as to how to balance the budget. 
B)  few choices as to how to balance the budget. 
C)  only one choice as to how to balance the budget. 
D)  no other option than to borrow heavily, thereby increasing state debt. 
E)  This issue is not discussed in the text and is therefore of no consequence.

Question 15

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 16

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 17

The ________ is a dedicated fund established by the constitution for the support of public education in the state.

Accepted Answer

A)  Permanent University Fund 
B)  Available School Fund 
C)  National Research University Fund 
D)  state lottery 
E)  Higher Education Fund 
A)  Permanent University Fund 
B)  Available School Fund 
C)  National Research University Fund 
D)  state lottery 
E)  Higher Education Fund

Question 18

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 his or her income in taxes. 
D)  the more income one has, 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 his or her income in taxes. 
D)  the more income one has, the larger the percentage of it that goes to pay taxes. 
E)  higher-income individuals pay progressively more taxes based on their incomes.

Question 19

According to the text, 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

Accepted Answer

A)  rising interest rates that increased the cost of borrowing. 
B)  increasing health care costs due to recent efforts to reform the health care system. 
C)  underfunded state pension system. 
D)  rising salaries of teachers. 
E)  state's public unions threatening a strike. 
A)  rising interest rates that increased the cost of borrowing. 
B)  increasing health care costs due to recent efforts to reform the health care system. 
C)  underfunded state pension system. 
D)  rising salaries of teachers. 
E)  state's public unions threatening a strike.

Question 20

Which statement regarding state-federal spending in Texas is true?

Accepted Answer

A)  Texas spends more on state-federal programs than most states do. 
B)  Texas spends less on state-federal programs than most states do. 
C)  Texas spends more than any other state for state-federal programs because Texans favor massive public welfare programs. 
D)  State-federal spending in Texas has been historically high relative to that of the rest of the states. 
E)  Federal efforts to balance the budget have virtually eliminated all state-federal spending in Texas. 
A)  Texas spends more on state-federal programs than most states do. 
B)  Texas spends less on state-federal programs than most states do. 
C)  Texas spends more than any other state for state-federal programs because Texans favor massive public welfare programs. 
D)  State-federal spending in Texas has been historically high relative to that of the rest of the states. 
E)  Federal efforts to balance the budget have virtually eliminated all state-federal spending in Texas.

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

Which of the following statements is true?

Texas will never have a personal income tax in the future because

Under Texas's budgetary system, there is NO power to shift monies between agencies or programs when the legislature in NOT in session.

Which of the following is at the heart of the budget process in Texas?

The Permanent School Fund was created in

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

The Texas Constitution specifies that state payments for assistance to needy children and their caretakers shall NOT exceed ________ percent of the state's budget in any biennium.

In addition to the state sales tax of 6.25 percent, county, city, and metropolitan transit authorities are allowed to impose an additional 2 percent sales tax.

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

One significant component of the budget process that is relatively unique to Texas is

Can Texas control spending when citizens are reluctant to see so many services cut?

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

Given the budget structure and constitutional limitations upon spending and taxing, legislators seeking to balance the budget are left with

From an overall standpoint, which statement is true?

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

The ________ is a dedicated fund established by the constitution for the support of public education in the state.

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

According to the text, 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

Which statement regarding state-federal spending in Texas is true?

The Political Culture, People, and Economy of Texas

The Texas Constitution

Texas in the Federal System

Political Parties in Texas

Elections in Texas

Interest Groups and Lobbying

The Texas Legislature

The Texas Executive Branch

The Texas Judiciary

Local Government in Texas

Public Policy in Texas

Crime and Corrections Policy in Texas

Filters

Exam 11: Public Finance in Texas

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

Which of the following statements is true?

Texas will never have a personal income tax in the future because

Under Texas's budgetary system, there is NO power to shift monies between agencies or programs when the legislature in NOT in session.

Which of the following is at the heart of the budget process in Texas?

The Permanent School Fund was created in

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

The Texas Constitution specifies that state payments for assistance to needy children and their caretakers shall NOT exceed ________ percent of the state's budget in any biennium.

In addition to the state sales tax of 6.25 percent, county, city, and metropolitan transit authorities are allowed to impose an additional 2 percent sales tax.

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

One significant component of the budget process that is relatively unique to Texas is

Can Texas control spending when citizens are reluctant to see so many services cut?

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

Given the budget structure and constitutional limitations upon spending and taxing, legislators seeking to balance the budget are left with

From an overall standpoint, which statement is true?

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

The ________ is a dedicated fund established by the constitution for the support of public education in the state.

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

According to the text, 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

Which statement regarding state-federal spending in Texas is true?

The Political Culture, People, and Economy of Texas

The Texas Constitution

Texas in the Federal System

Political Parties in Texas

Elections in Texas

Interest Groups and Lobbying

The Texas Legislature

The Texas Executive Branch

The Texas Judiciary

Local Government in Texas

Public Policy in Texas

Crime and Corrections Policy in Texas

Filters