Book: Ch. 11

Question 1

Define: General Revenues Fund budget

Answer 1

budget for a nondedicated revenue account that functions as the state’s primary operating fund

Question 2

Define: General Revenue–Dedicated Funds budget

Answer 2

budget composed of funds for dedicated revenues that target money for specific purposes

Question 3

Define: Federal Funds budget

Answer 3

state budget that includes all grants, payments, and reimbursements received from the federal government by state agencies and institutions

Question 4

Define: Other Funds budget

Answer 4

budget consisting of all other funds flowing into the state treasury that are not included in other state budgets; this includes the Texas Highway Fund, various trust funds operated by the state, and certain revenues held for local higher education accounts.

Question 5

Define: All Funds budget

Answer 5

budget that aggregates all monies flowing into the state treasury and all state spending

Question 6

Define: regressive tax

Answer 6

type of tax where the tax burden falls more heavily on lower-income individuals

Question 7

Define: progressive tax

Answer 7

type of tax where the tax burden falls more heavily on upper-income individuals

Question 8

Define: matching funds

Answer 8

federal monies going to a state based on state spending for a program

Question 9

Define: General Revenue Fund

Answer 9

the state’s primary operating fund

Question 10

Define: Permanent School Fund (PSF)

Answer 10

fund created in 1854 that provides monies for primary and secondary schools

Question 11

Define: Available School Fund (ASF)

Answer 11

dedicated fund established by the constitution for the support of public education in the state

Question 12

Define: State Highway Fund

Answer 12

fund that supports the construction, maintenance, and policing of roadways and acquires rights of way; funded through a variety of taxes such as motor vehicle registration fees, the federal highway fund, and the sales tax on motor lubricants

Question 13

Define: Economic Stabilization Fund (ESF)

Answer 13

fund established by constitutional amendment in 1988 to provide funds for the state during times of financial stress, commonly known as the Rainy Day Fund

Question 14

Define: Permanent University Trust Fund (PUF)

Answer 14

fund established in 1876 and funded from the proceeds from land owned by the state; monies go to various universities in the University of Texas (UT) and Texas A&M systems

Question 15

Define: Higher Education Fund (HEF)

Answer 15

state higher education fund for universities not having access to PUF monies

Question 16

Define: National Research University Fund (NRUF)

Answer 16

fund established in 2009 to provide funding to universities seeking to achieve national prominence as research institutions

Question 17

Define: Article 3, Section 49a (Pay-as-You-Go Limit)

Answer 17

portion of the Texas Constitution that requires the state to maintain a balanced budget

Question 18

Define: appropriations

Answer 18

authorization by the legislature to a government agency or body to spend up to a particular amount of money

Question 19

Define: debt service

Answer 19

money spent by the state to pay off debt; includes interest and principal payments