Ch13 - Public Policy, Finance and Budgeting in TX Flashcards
Public Policy
Any act, law, legislation or program enacted by a public entity.
Reflects societal values
Redistributive policies
Public policies that reallocate funds from those with higher income to assist specific groups with lower incomes and provide a social safety net
Progressive taxation
people with higher incomes are taxed at higher percentage rates
Distributive policies
Public policies funded by taxpayers where those who contribute personally benefit
Regulatory policies
Public policies intended to regulate activity and provide public order
Paradigm
models used by social scientists to explain and understand concepts about how things work
Policymaking Model
- Agenda setting
- Formulation
- Implementation
- Evaluation
- Change or Termination
Agenda Setting
The first stage of the public policymaking model
The matter is brought to attention of the gov and a resolution is sought.
Formulation
The 2nd stage of the public policy making model
The issues are defined and options are explored
Level and degree of gov involvement established
Policy is finalized, formally announced and funded
Implementation
The 3rd stage of the public policy making model
Policy is carried out
Media involvement
Evaluation
The 4th stage of the public policy making model
Evaluation is carried out in a superficial manner
Insuring that there are no unintended consequences
Change or Termination
The final stage of the public policy making model
Adjusting or modifying the policy to enhance effectiveness, or terminating the policy.
The TX Voter ID Debate
Very intense
Voter ID laws require voters id proving they are eligible to vote before they vote
Fiscal conservatism
Opposition to deficit spending, strong support of low tax rates, and strong support for limited spending for public services
Balanced Budget
a means to keep the gov from spending more that it receives in revenues
Doesn’t allow for flexibility
The comptroller has the responsibility for both estimating and certifying revenue
The Biennial Budget System
- The appropriations bill must cover a two-year cycle
- The budget has to be passed 6 months before it goes into effect
- Spending decisions are more difficult
Dedicated funds
Revenues set aside for specific expense categories
Self-imposed constraint
Appx. 200 dedicated funds
Problem: high percentage of state revenue is restricted
Federal Mandates
Regulations set by Congress that state and local gov must meet
Legislative Budget Board (LBB)
a body made up of members of the house and senate; including the two presiding officers, which oversees a staff responsible for preparing the basic working budget for the legislature’s consideration
Dual budget system
The governor’s office of budget, planning and policy does prepare a doc, but it carries no weight with the legislature
Budget Creation Process
Each agency makes a Legislative Appropriations Request (LAR)
Using the LARs, LBB constructs the budget
Comptroller’s biennial revenue estimate is delivered to the legislature
Senate and house committees work on the bill
Conference committee
Tax Revenue
Funds generated through the tax system
Revenue and spending _____ _____ in the long run
even out
Current services budget
Budget adjusted for increases in population and inflation
