Exam 8: The California Budget Process

Tuition at institutions of higher education has increased only marginally since 1994,such that students pay virtually the same rates in 2018 as they did in 1994 (after inflation is figured in).

California charges millionaires an extra 1% in income tax.

The governor and legislature know almost exactly how much money the state will collect in taxes,fees,and federal grants during the coming year.

The state's base sales tax rate is ______.

What is a budget bill?

Taxes in California are ______,meaning that tax rates increase as income rises,so that people at the higher end of the scale pay a greater percentage in taxes than those at the lower end.

How are large infrastructure projects--such as high-speed rail or school construction--usually funded in California?

Rather than raising taxes currently to pay for infrastructure projects like bridge repairs,high-speed rail projects,or earthquake retrofitting for hospitals,it is common practice in California to pay for such projects through ______.

The state's health exchange that was set up as part of the Affordable Care Act is called ______.

What kinds of debts has California incurred through borrowing? Explain the difference among general obligation bonds,budgetary borrowing,and unfunded liabilities.

By law the state must set aside surplus moneys into a "rainy day" fund to cover unanticipated economic situations,such as a downturn,or emergency spending.

Which state organization bears the largest responsibility for preparing the state budget?

Approximately how large is California's annual general fund budget?

The large bills that accompany the budget and contain necessary policy changes to state law reflected in the amounts budgeted are called ______.

Voters passed a new law in 2010 that reduced the majority needed to pass the budget from a supermajority to a simple majority.In 2011,the legislature passed a budget on time for the first time in 5 years.This is an example of ______.

An "excise tax" is surcharge placed on ______.

Taxpayers typically use general obligation bonds to finance large infrastructure projects,or megaprojects,such as flood control projects or building schools.

Because there is a Democrat in the governor's office and Democrats also dominate the legislature,the governor's version of the budget automatically becomes law.

The annual budget is based on educated guesses and sophisticated projections about how much money the state will collect in taxes,fees,and federal grants during the coming year.

How large is the budget for the state's Transportation Agency,a superagency that includes Caltrans,the California Highway Patrol,the Department of Motor Vehicles,and the High-Speed Rail Authority?