Exam 11: Public Finance in Texas

A) The Texas Supreme Court ordered a balanced budget.
B) The LBB passed the balanced budget, but it was vetoed by the governor.
C) A special session of the Texas legislature voted for a balanced budget.
D) The comptroller filed a lawsuit against the governor and the legislature.
E) The federal government loaned Texas enough money to balance the Texas budget.

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A) Texas spends more on state-federal programs than most states do.
B) Texas spends less on state-federal programs than most states do.
C) Texas spends more than any state for state-federal programs because Texans favor massive public welfare programs.
D) State-federal spending in Texas has been historically high relative to that of the rest of the states.
E) Federal efforts to balance the budget have virtually eliminated all state-federal spending in Texas.

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False

A) the Texas legislature
B) the Texas Board of Education
C) the Texas comptroller
D) the Higher Education Coordinating Board
E) the Texas land commissioner

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B

A) the Legislative Budget Board
B) the comptroller
C) the secretary of state for Texas
D) the legislative committee on tax fairness
E) the lieutenant governor

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A) between $24 and $27 million.
B) between $24 and $27 billion.
C) about $87 million.
D) well over $100 billion.
E) nearly $1 trillion.

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A) widely disbursed across numerous state agencies.
B) concentrated in one agency.
C) concentrated on a few state agencies.
D) determined at each annual legislative session.
E) earmarked almost exclusively to education.

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A) about even with the national average.
B) much higher than the national average.
C) much lower than the national average.
D) among the highest, particularly in education.
E) second only to that of New York State.

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A) based solely on financial need.
B) based on attendance rates.
C) as mandated by the Texas Constitution of 1876.
D) at the discretion of the governor.
E) based on the tax rate for school districts.

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Answered by ExamLex AI

The Great Recession had a significant impact on the budget of Texas. The state experienced a decline in tax revenues as a result of the economic downturn, leading to budget cuts and financial strain. This resulted in reduced funding for essential services such as education, healthcare, and infrastructure. Texas also had to tap into its rainy day fund to mitigate the impact of the recession on its budget. Additionally, the state had to make tough decisions regarding spending priorities and address the challenges of a shrinking economy and rising unemployment. Overall, the Great Recession had a substantial and lasting impact on the budget of Texas, requiring careful financial management and strategic planning to navigate through the difficult economic conditions.

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A) low-income Texans would pay a lower tax rate than wealthy Texans.
B) low-income Texans, collectively, would contribute less to the state budget than wealthy Texans would.
C) wealthy Texans would pay at a lower tax rate.
D) people with lower incomes would pay a higher tax rate.
E) poor homeowners and renters would pay taxes at higher rates.

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A) It will probably be quite regressive.
B) It is a fairer but a highly unreliable source of revenue.
C) It makes Texas more attractive to businesses that are considering relocating from out of state.
D) It is not influenced by special interests.
E) It is a fairer and more reliable source of revenue.

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A) buy textbooks for Texas children.
B) fund primary and secondary schools in the state.
C) fund universities and community colleges in the state.
D) fund the two main universities in Texas: the University of Texas and Texas A & M.
E) fund religious education in Texas.

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