Exam 8: The California Budget Process

Most annual spending is mandatory,meaning that legislators must spend certain amounts of the budget on items that are required by law.

What are the Department of Finance's responsibilities with respect to preparing the annual budget?

Despite the fact that the legislative leaders negotiate a final version of the budget,the governor can make final adjustments to it through the line-item veto.

If a deficit results,how do legislator and the governor try to close the gap between planned expenditures and expected revenues?

In 2016,voters extended special taxes for high-income wage earners.This is an example of ______,which means that California generally relies on economic elites for much of its revenue.

It takes two-thirds vote to raise taxes and fees.What vote threshold must be reached to reduce taxes and fees?

The three major taxes in California that cover most of California's expenditures are ______.

Revenue is another word for ______.

The amount of taxes paid varies greatly from individual to individual and among socioeconomic classes.

Only a simple majority is required to pass the state's annual budget bill.

The office that analyzes the budget for the legislature is the ______,whereas the organization that prepares the budget for the governor is the ______.

About how much of the state's general fund budget comes from personal income taxes,or the "PIT?"

Because there is a Democrat in the governor's office and Democrats also dominate the legislature,the governor's use of the line-item veto is relatively minimal.

Taxes on corporations represent a much larger source of state revenue than income taxes.

On average,how long does it usually take to construct an annual budget?

Californians pay among the lowest property tax rates but the highest sales tax rates among the U.S.states.

Proposition 98 dictates that approximately ______ of the general fund budget must go to fund K-14 education every year.

The state spends most of its annual budget on ______.

A supermajority vote of two thirds is required to pass the state's annual budget bill.

California's fiscal year begins ______ and ends ______.