Exam 11: Public Finance

In theory, Texas has a dual-budget system, meaning the budget authority is shared by the governor and the legislature; however, in practice, the primary player(s) in the budget is/are

Texas is known as a high tax state; because of this, it is a good place to do business.

Discuss the major sources of state revenue in Texas and the major categories of state spending. How does Texas compare to other states in terms of spending in these areas?

The Available School Fund, the State Instructional Materials Fund, and the Foundation School Fund are parts of which category of the Texas budget?

With a progressive income tax, people with lower income pay a lower tax rate than people with higher income.

According to Texas Constitution (Article 3, Section 51a), Texas cannot spend more than _________ of the state budget in any two-year period to help needy dependent children or their caretakers.

Which statement about the Texas budget is true?

Identify four types of taxes in Texas and the regressive aspects of the Texas tax system.

Oil severance tax is levied after the oil is refined into motor vehicle fuel.

What determines the amount of tax revenue generated from oil and natural gas produced in Texas?

Non-dedicated funds

Federal money is an important part of the Texas budget, but monies that Texas receives from the federal government

The Permanent School Fund is managed primarily by what entity?

Next to revenue generated by state taxes, the second-largest source of state revenue comes from