Question 1

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. 
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.

Question 2

A ________ is a tax on the market value of oil produced in the state.

Accepted Answer

A)  general sales tax 
B)  selective sales tax 
C)  severance tax 
D)  hidden tax 
A)  general sales tax 
B)  selective sales tax 
C)  severance tax 
D)  hidden tax

Question 3

In the first stage of the budgetary process, the governor's office develops a draft budget based on requests from state agencies.

Accepted Answer

A) True 
 B)False

Question 4

The Texas Comptroller's Office is predicting declining receipts in the tobacco settlement account due to fewer people purchasing cigarettes.

Accepted Answer

A) True 
 B)False

Question 5

What is the argument commonly used by supporters of a state income tax?

Accepted Answer

A)  It will probably be quite regressive. 
B)  It is a fairer but highly unreliable source of revenue. 
C)  It makes Texas more attractive to businesses that are considering relocating from out of state. 
D)  It is a fair and more reliable source of revenue. 
A)  It will probably be quite regressive. 
B)  It is a fairer but highly unreliable source of revenue. 
C)  It makes Texas more attractive to businesses that are considering relocating from out of state. 
D)  It is a fair and more reliable source of revenue.

Question 6

Due to the structure of the budget and the constitutional requirement to balance the budget,

Accepted Answer

A)  legislators are given a great amount of flexibility in terms of the budgeting process. 
B)  legislators have only a few choices in terms of the budgeting process. 
C)  the budget is easy to forecast each session. 
D)  legislators generally raise taxes frequently to be able to increase the services offered by the state. 
A)  legislators are given a great amount of flexibility in terms of the budgeting process. 
B)  legislators have only a few choices in terms of the budgeting process. 
C)  the budget is easy to forecast each session. 
D)  legislators generally raise taxes frequently to be able to increase the services offered by the state.

Question 7

Much of the money in the state budget lies outside the direct control of the legislature.

Accepted Answer

A) True 
 B)False

Question 8

The bulk of federal funds expenditures is in two areas: health and human services and education.

Accepted Answer

A) True 
 B)False

Question 9

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 
A)  business owners 
B)  wealthy homeowners and renters 
C)  poor homeowners and renters 
D)  renters

Question 10

The purpose of the Biennial Revenue Estimate is to provide

Accepted Answer

A)  a detailed forecast of total revenues that the state is expected to take in over the next biennium. 
B)  a detailed forecast of expenditures the state expects to be obligated for in the two-year budget cycle. 
C)  a detailed forecast of the estimated federal funds the state can expect to receive during the two-year budget cycle. 
D)  the governor a detailed estimate of the likelihood of a balanced budget during the two-year budget cycle. 
A)  a detailed forecast of total revenues that the state is expected to take in over the next biennium. 
B)  a detailed forecast of expenditures the state expects to be obligated for in the two-year budget cycle. 
C)  a detailed forecast of the estimated federal funds the state can expect to receive during the two-year budget cycle. 
D)  the governor a detailed estimate of the likelihood of a balanced budget during the two-year budget cycle.

Question 11

________ is a non-dedicated revenue account and is the state's primary operating fund.

Accepted Answer

A)  The General Revenues Funds budget 
B)  The General Revenue-Dedicated Funds budget 
C)  The Federal Funds budget 
D)  The Other Funds budget 
A)  The General Revenues Funds budget 
B)  The General Revenue-Dedicated Funds budget 
C)  The Federal Funds budget 
D)  The Other Funds budget

Question 12

There is no mechanism available under the current budgetary system in Texas to shift monies between agencies or programs when the legislature is not in session.

Accepted Answer

A) True 
 B)False

Question 13

In addition to federal monies, which two other sources in recent years have had a major impact on monies flowing into the state budget?

Accepted Answer

A)  the alcoholic beverage tax and utility tax 
B)  the inheritance tax and hotel tax 
C)  the cigarette and tobacco taxes and motor fuel tax 
D)  the state lottery and the settlement the state reached with tobacco companies 
A)  the alcoholic beverage tax and utility tax 
B)  the inheritance tax and hotel tax 
C)  the cigarette and tobacco taxes and motor fuel tax 
D)  the state lottery and the settlement the state reached with tobacco companies

Question 14

Compared to other states, Texas tends to spend a relatively small amount of money on programs that are jointly funded by the state and federal governments. Because of this,

Accepted Answer

A)  Texas is ineligible for any matching funds because they are distributed only to the largest contributors. 
B)  the amount of money that Texas receives in matching funds and grants from the federal government is relatively low as compared to other states. 
C)  Texas receives a higher than average amount of money from the federal government in grants and matching funds compared to other states. 
D)  Texas shares a pool of funds with other states that are designated as "low-level" contributors. 
A)  Texas is ineligible for any matching funds because they are distributed only to the largest contributors. 
B)  the amount of money that Texas receives in matching funds and grants from the federal government is relatively low as compared to other states. 
C)  Texas receives a higher than average amount of money from the federal government in grants and matching funds compared to other states. 
D)  Texas shares a pool of funds with other states that are designated as "low-level" contributors.

Question 15

Poor homeowners and renters generally pay more of their income in property tax than do the wealthy.

Accepted Answer

A) True 
 B)False

Question 16

How does the Texas Constitution shape the budget? What budgetary requirements or restrictions are found in the Texas Constitution? Do these restrictions help or hurt Texas in today's competitive business environment? Are there any problems with these restrictions for a rapidly growing state?

Accepted Answer

a. Time limits: Two-year, biannual budge

Question 17

The Legislative Budget Board is chaired by

Accepted Answer

A)  the comptroller of public accounts. 
B)  the governor. 
C)  the lieutenant governor. 
D)  the land commissioner. 
A)  the comptroller of public accounts. 
B)  the governor. 
C)  the lieutenant governor. 
D)  the land commissioner.

Question 18

The amount of money a state receives in federal matching funds is based on the amount a state spends on a particular program.

Accepted Answer

A) True 
 B)False

Question 19

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

Accepted Answer

a. Strengths: The state constitution man

Question 20

The Permanent School Fund distributes money to school districts across the state based on what two factors?

Accepted Answer

A)  the number of schools in a district and student attendance 
B)  student attendance and guaranteed bonds issued by local school boards 
C)  the number of teachers and test scores 
D)  teacher availability to student ratio and test scores 
A)  the number of schools in a district and student attendance 
B)  student attendance and guaranteed bonds issued by local school boards 
C)  the number of teachers and test scores 
D)  teacher availability to student ratio and test scores

Why must the Texas legislature maintain a balanced budget?

A ________ is a tax on the market value of oil produced in the state.

In the first stage of the budgetary process, the governor's office develops a draft budget based on requests from state agencies.

The Texas Comptroller's Office is predicting declining receipts in the tobacco settlement account due to fewer people purchasing cigarettes.

What is the argument commonly used by supporters of a state income tax?

Due to the structure of the budget and the constitutional requirement to balance the budget,

Much of the money in the state budget lies outside the direct control of the legislature.

The bulk of federal funds expenditures is in two areas: health and human services and education.

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

The purpose of the Biennial Revenue Estimate is to provide

________ is a non-dedicated revenue account and is the state's primary operating fund.

There is no mechanism available under the current budgetary system in Texas to shift monies between agencies or programs when the legislature is not in session.

In addition to federal monies, which two other sources in recent years have had a major impact on monies flowing into the state budget?

Compared to other states, Texas tends to spend a relatively small amount of money on programs that are jointly funded by the state and federal governments. Because of this,

Poor homeowners and renters generally pay more of their income in property tax than do the wealthy.

How does the Texas Constitution shape the budget? What budgetary requirements or restrictions are found in the Texas Constitution? Do these restrictions help or hurt Texas in today's competitive business environment? Are there any problems with these restrictions for a rapidly growing state?

The Legislative Budget Board is chaired by

The amount of money a state receives in federal matching funds is based on the amount a state spends on a particular program.

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

The Permanent School Fund distributes money to school districts across the state based on what two factors?

The Political Culture, People, and Economy of Texas

The Texas Constitution

Texas in the Federal System

Political Parties

Campaigns and Elections

Interest Groups and Lobbying

The Legislature

The Executive Branch

The Judiciary

Local Government

Public Policy

Crime and Corrections Policy

Building the Future: Public Policies for a Changing Texas

Filters

Exam 11: Public Finance

Why must the Texas legislature maintain a balanced budget?

A ________ is a tax on the market value of oil produced in the state.

In the first stage of the budgetary process, the governor's office develops a draft budget based on requests from state agencies.

The Texas Comptroller's Office is predicting declining receipts in the tobacco settlement account due to fewer people purchasing cigarettes.

What is the argument commonly used by supporters of a state income tax?

Due to the structure of the budget and the constitutional requirement to balance the budget,

Much of the money in the state budget lies outside the direct control of the legislature.

The bulk of federal funds expenditures is in two areas: health and human services and education.

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

The purpose of the Biennial Revenue Estimate is to provide

________ is a non-dedicated revenue account and is the state's primary operating fund.

There is no mechanism available under the current budgetary system in Texas to shift monies between agencies or programs when the legislature is not in session.

In addition to federal monies, which two other sources in recent years have had a major impact on monies flowing into the state budget?

Compared to other states, Texas tends to spend a relatively small amount of money on programs that are jointly funded by the state and federal governments. Because of this,

Poor homeowners and renters generally pay more of their income in property tax than do the wealthy.

How does the Texas Constitution shape the budget? What budgetary requirements or restrictions are found in the Texas Constitution? Do these restrictions help or hurt Texas in today's competitive business environment? Are there any problems with these restrictions for a rapidly growing state?

The Legislative Budget Board is chaired by

The amount of money a state receives in federal matching funds is based on the amount a state spends on a particular program.

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

The Permanent School Fund distributes money to school districts across the state based on what two factors?

The Political Culture, People, and Economy of Texas

The Texas Constitution

Texas in the Federal System

Political Parties

Campaigns and Elections

Interest Groups and Lobbying

The Legislature

The Executive Branch

The Judiciary

Local Government

Public Policy

Crime and Corrections Policy

Building the Future: Public Policies for a Changing Texas

Filters