Governing Texas 2nd Edition By Anthony Champagne – Test Bank

Chapter 11: Public Finance in Texas

MULTIPLE CHOICE

1. In May 2014, the UT System Board of Regents decided on all of the following EXCEPT
a. not to raise tuition for in-state students.
b. provisions to raise out-of-state tuition.
c. that the Board allocate monies to UT Austin from the state’s Permanent University Fund.
d. that universities were allowed to approve optional four-year fixed tuition programs.
e. that the Board allocate monies to other Texas schools from the Available University Fund.

ANS: E DIF: Easy REF: What Is the Budget?
OBJ: Explain the purpose of the state budget and what is typically included
STA: 8 MSC: Understanding

2. Prior to 2003, tuition for public colleges and universities in Texas was set by the
a. Board of Education.
b. state Department of Education.
c. governor’s Department of Education.
d. state legislature.
e. federal government.

ANS: D DIF: Easy REF: What Is the Budget?
OBJ: Explain the purpose of the state budget and what is typically included
STA: 8 MSC: Remembering

3. Prior to 2003, tuition rates for public colleges and universities in Texas tended to be
a. slightly above the national average.
b. slightly below the national average.
c. about even with the national average.
d. much higher than the national average, because Texas has no state income tax.
e. low compared to other states.

ANS: E DIF: Easy REF: What Is the Budget?
OBJ: Explain the purpose of the state budget and what is typically included
STA: 8 MSC: Analyzing

4. Following a legislative decision in 2003 to reduce state funding to higher education, which source of university revenue began to increase most rapidly?
a. gasoline taxes d. state income taxes
b. student tuition and fees e. Texas state lottery revenues
c. general revenues

ANS: B DIF: Easy REF: What Is the Budget?
OBJ: Explain the purpose of the state budget and what is typically included
STA: 8 MSC: Applying

5. Why must the Texas legislature maintain a balanced budget?
a. It is required by the U.S. Constitution.
b. It is required by the Texas Constitution.
c. Each legislative session decides to balance or not balance the state budget.
d. The Texas Office of the Comptroller writes the state budget.
e. Prior to assuming office, politicians in Texas swear an oath to balance the budget.

ANS: B DIF: Easy REF: What Is the Budget?
OBJ: Explain the purpose of the state budget and what is typically included
STA: 8 MSC: Analyzing

6. The ________ budget is one composed of funds for dedicated revenues that target money for specific purposes.
a. General Revenues Fund d. Rainy Day Funds
b. General Revenue-Dedicated Funds e. Miscellaneous Funds
c. Federal Funds

ANS: B DIF: Easy REF: What Is the Budget?
OBJ: Explain the purpose of the state budget and what is typically included
STA: 8 MSC: Remembering

7. Given the budget structure and constitutional limitations upon spending and taxing, legislators seeking to balance the budget are left with
a. many choices as to how to balance the budget.
b. few choices as to how to balance the budget.
c. only one choice as to how to balance the budget.
d. no other option than to borrow heavily, thereby increasing state debt.
e. This issue is not discussed in the text and is therefore of no consequence.

ANS: B DIF: Medium REF: What Is the Budget?
OBJ: Explain the purpose of the state budget and what is typically included
STA: 8 MSC: Evaluating

8. Federal money is an important part of the Texas budget, but monies that Texas receives from the federal government
a. often come with strings attached.
b. are usually categorical grants with no federal guidelines or mandates whatsoever.
c. are too insignificant to be included in the state budgetary process.
d. are usually not received in time to affect the budget process.
e. are usually earmarked for powerful Texas labor unions.

ANS: A DIF: Medium REF: What Is the Budget?
OBJ: Explain the purpose of the state budget and what is typically included
STA: 8 MSC: Analyzing

9. Federal funds appropriated in Texas generally are
a. widely disbursed across numerous state agencies.
b. concentrated in one agency.
c. concentrated in a few state agencies.
d. determined at each annual legislative session.
e. earmarked almost exclusively for education.

ANS: C DIF: Medium REF: What Is the Budget?
OBJ: Explain the purpose of the state budget and what is typically included
STA: 8 MSC: Evaluating

10. Texas has a reputation of being a ________ state.
a. “low service, high tax” d. “high service, high tax”
b. “low service, low tax” e. “high service, low tax”
c. “no services, low tax”

ANS: B DIF: Easy REF: Spending and Revenue in Texas
OBJ: Describe the general pattern of state spending in Texas and where state revenue comes from
STA: 8 MSC: Remembering