chapter 11

Question 1

what does the Texas Constitution mandate?

Answer 1

a balanced budget

Question 2

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

Answer 2

general revenue funds

Question 3

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

Answer 3

general revenue-dedicated funds

Question 4

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

Answer 4

federal funds

Question 5

Texas has a reputation for being what type of state that maintains a favorable environment for business?

Answer 5

low service, low tax state

Question 6

one of seven states with no personal income tax, but there is a high sales tax (13th highest in the US)

Answer 6

Texas

Question 7

the tax burden falls more heavily on upper-income individuals

Answer 7

progressive tax

Question 8

such as sales tax, the tax burden falls more heavily on lower-income individuals

Answer 8

regressive tax

Question 9

federal grants and matching funds are low, but federal aid to Texas are what?

Answer 9

high (increasing)

Question 10

funds primary and secondary schools

Answer 10

permanent school fund (PSF)

Question 11

a dedicated fund for support of public education

Answer 11

available school fund (ASF)

Question 12

funded through distributions of the PSF and 25% of the state’s motor fuels tax revenue

Answer 12

Available School Fund (ASF)

Question 13

supports the construction, maintenance, and policing of roadways and acquires rights of way

Answer 13

state highway fund

Question 14

fund that is meant to provide relief during times of financial distress (also known as the Rainy Day Fund)

Answer 14

Economic Stabilization Fund (ESF)

Question 15

support most institutions of the University of Texas and Texas A&M University systems

Answer 15

Permanent University Fund (PUF)

Question 16

supports universities that do not have access to PUF monies

Answer 16

Higher Education Fund (HEF)

Question 17

funds efforts to achieve national prominence as research institutions

Answer 17

National Research University Fund (NRUF)

Question 18

according to Article 3, Section 49a (pay-as-you-go limit), the state must maintain what?

Answer 18

a balanced budget

Question 19

responsible for determining the proper financial figures

Answer 19

Legislative Budget Board (LBB)

Question 20

enables the governor and the LBB to execute the budget, which includes the power to shift funds between agency programs or between agencies when the legislature is not in session

Answer 20

a 1985 amendment

Question 21

the LBB includes what?

Answer 21

Lt Governor and Speaker of the House

Question 22

a joint committee created to work out a compromise on House and Senate versions of a piece of legislation

Answer 22

Conference committee

Question 23

veto that happens only on appropriation bills; not even the president has this power

Answer 23

Line-item veto

Question 24

number 1 state of income for Texas is what?

Answer 24

sales tax