TAMUG POLS 207 Haney Exam 3

What types of local governments exist in Texas and why are they so numerous?

Counties, cities, schools, colleges, airports, HOA's, hospitals, emergency, etc.

Dillon's Rule

A court ruling by US Supreme Court judge John Dillon that stated local governments have only the powers that are granted to them by the State governments

By law, what aspects of local government does the State government control?

Texas law controls the creation, powers, duties, election of officials, and taxes of local governments

Fiscal federalism

Money incentives given by the federal government to encourage policies at the state and local level

Administrative federalism

Policies and requirements set by the federal government in which states are expected to comply without aid/funding from the federal government

How do fiscal and administrative federalism apply to local governments?

-Through fiscal federalism, local governments are given amounts of money by the state and federal governments to follow policies implemented

-Through administrative federalism, they are expected to otherwise implement state policies and regulations through taxes or 'competition' with other local entities

What system is modern local government based on in Texas today?

The Mexican Republic municipality system in which counties are created based off of officially recognized cities and populations in the area

What are the 6 key functions of local governments?

1. Operate courts
2. Provide public health clinics
3. Maintain state records
4. Collect funds
5. Conduct elections
6. Work jointly with state government for other services

County Commissioners Court duties

*4 precincts and one judge
- road and bridge maintenance
- regulate sale of alcoholic products
- county finance and funds
- conduct elections

Texas county commissioner judge is unique in that it is given _______ powers.

Legislative, judicial, executive

Merit-based civil service system vs. Patronage system

Merit-based: jobs require a minimum level of qualifications and skills/formal training

Patronage: Jobs given to supporters/preference individuals, regardless of merit

How are officials selected for office in Texas county governments?

Populations < 190,000

Patronage system

Populations > 190,000

Merit-based civil services system

Local governments of Texas rely on __________ as their primary source of income?

Property tax (ONLY applies to real estate, not personal possessions)

General taxes vs. special taxes

General taxes fund normal activities of government

Special taxes fund special projects like bridges and roads

Privatization

Government sells assets or services to a private company to maintain and continue to provide that service

Contract outsourcing

Government contracts with a private company to conduct a service the government would traditionally provide

How is a city created in Texas?

Population must be 200, 10% of registered voters must petition

What are the two categories of status for cities?

General law and home rule

Ordinance powers

powers implemented by city governance

General law city

A city whose default organization and powers are specified by Texas Local Government Code (the State)

Home rule city

A city granted greater freedom in choosing organization, functions, and powers without state intervention

*Granted a city charter: a written plan of government

What are the three basic forms of city government? How are they run?

1. strong mayor-council: concentration of power in elected Mayor, efficiency of power
2. weak mayor-council: elected Mayor powers are equated to council, slow acting
3. council-manager: elected council hires manager of operations, professional and efficient but subject to politics

Galveston is unique in that its council consists of _______.

heads of city departments

What 4 types of elections can home-rule cities use

1. SMD (P or M): # of council seats = # of districts, one representative elected per district

2. At-large: candidates compete for council seats, voters get # of votes = to # of seats

3. At-large by place: candidates compete for specific seats of council, voters elect top candidate per seat on council

4. Cumulative: candidates compete for council seats, voters get # of votes = to # of seats and can distribute them in any manner

Machine politics

A system of patronage run by a local party boss who controls specific seats to gain power

Home Owners Associations

Legally chartered local organizations under Texas law that maintain quality of neighborhoods
- governed by a board
- given legal authority to rectify violators

Special districts

Created by citizen petitions to provide specific/limited services not already provided by the existing local governments
Ex: airports, libraries, ISD's, community colleges, etc.

What is the five-step policy-making process?

1. Agenda setting: deciding the top priorities
2. Policy formation: developing possible solutions to problems
3. Policy adoption: formal government action takes place
4. Policy implementation: policy is carried out in state agencies
5. Policy evaluation: implementation is evaluated to determine if the state is meeting their goal

Fiscal policy

how the government attempts to influence the economy through taxing and spending

Texans pay upwards of 60 different types of taxes, but do NOT pay what tax?

general income tax

Progressive vs. regressive taxes

Progressive; places higher rates on higher incomes
Regressive; higher income taken from lower income families

The state relies on what tax as its main source of income?

Sales tax

The local governments rely on what tax is their main source of income?

Property tax

General sales tax

Tax placed on goods and services within a jurisdiction
*Accounts for ~60% of all tax-generated income and is the highest source of state revenue

Gasoline/severance tax

A separate tax placed on the consumption of gasoline (20c per gallon)

*Severance tax: tax placed on natural resources when they are produced/"severed" from earth

Franchise tax

Primary tax placed on businesses

Sin tax

Tax placed on goods/services the government wants to discourage citizens from using

Examples; alcohol, cigarettes, gambling, etc.

Property taxes are ad velorum taxes, meaning:

They are taxes based on the value of the property; AKA the "stealth tax"

What are the different sources of state revenue?

Taxes, interests, licensing, lottery funds, and federal grants

Legislative Budget Board (LBB)

1949 board co-chaired by S. President and Speaker of the House to develop and present a state budget for two consecutive fiscal years

Texas state government fiscal year

September 1- August 31

Texas has a "pay-as-you-go" budgeting system, meaning

The state fiscal policy requires a balanced budget and borrowing money is reserved for special circumstances

State institutions can get around the hassle of balancing the budget by selling __________ ___________, ultimately causing

revenue bonds (selling bonds to companies with expectation that the revenue made will be paid back to the state) ultimately cause state institutions to go into debt
*Local government spends 192+ billion
*State debt has doubled since 2004

The state spends the most of its budget on what two categories?

41% goes to health and 33% goes to education

How has population growth influenced state expenditures?

Population is the number 1 influencer on state expenditures; doubled with inflation, this has caused state expenditures to steadily increase

Economic Stabilization Fund (ESF)- AKA "Rainy Day Fund"

Going in: 75% of oil production tax and natural gas tax that exceeds 1987 levels

Coming out:

- Budget deficits require 3/5 vote in both houses

- ANY circumstance requires 2/3 vote of present members of both houses

*ESF has been steadily growing since the 2005 oil boom, and usage of funds has been increasingly controversial

Tax expenditures

Any reduction of tax liability resulted from tax benefits being given to certain taxpayers and not all taxpayers

Subsidies

An offset cost of goods OR government funds used to promote civil society and civic activities

Tax expenditures and subsidies are used by the Texas government in attempt to ________

Increase economic development

What are the consequences of encouraging economic development by attracting businesses and corporations via tax expenditures and subsidies?

In attempt to increase development, government gives breaks to big businesses and events with the expectation that jobs and revenue brought into the state will out pay their contributions, however, the resulting gap in tax revenue is left to the rest of taxpayers and local governments often fail to gather the proper resources to maintain and keep up with the growing population and smaller sphere of taxpayers

Gilmer-Aikin Laws 1949

Formed the current basis for public K-12 education in Texas, including;
- 12 yrs of school
- 175 days of school per year
- SBOE become elected-not appointed

Plessy v. Ferguson (1896)

"separate but equal" schooling system

Brown v. Board (1954)

No racial segregation in schools nationwide

Despite the Diego v. Bastrop case (1948) which banned racial segregation against Hispanics in school, Texas instead did what to keep Hispanics out of white schools?

Texas began ELL schooling systems which separated "Spanish speaking" Hispanics into separate schools
- 2014 LULAC filed suit claiming Texas still used its naming segregation system

How are public schools in Texas funded?

12% federal funds
44% state funds (PSF)
45% local government funds (property taxes)

Permanent School Fund (PSF)

Est. 1984 to fund Texas public schools
- funded by oil and gas interests off of state investments

Robin Hood Plan 1993

Implemented a plan to take money from richer school districts and redistributing it to poorer districts
*Did not improve the poor districts and worsened the performance/stability of the richer districts

Education Reform Act of 1984

- teachers and admin must be competent in their field
- implemented statewide standardized testing
- "no pass-no play" rule (athletes > 70)
*Because standardized tests were meant to show improvement, schools were pressured to teach towards the tests, not for incentives or learning purposes

No Child Left Behind Act (NCLB-2001)

Formally tied federal funding for public schools to improvement in standardized testing across the states
*Permanently established the "cheating regime" that Texas vastly overlooks

How is higher education in Texas funded?

Public higher education is funded by the PUF (mainly to UT and Texas A&M)

Why are UT and Texas A&M University the two top funded schools in the nation?

Texas 1876 Constitution granted 1 million acres for higher education systems, but gave them cheap West Texas lands
- 1923 Santa Rita oil well found by UT- generated what is now 19.9 billion into the PUF
*75% goes to UT, 25% goes to A&M

Permanent University Fund (PUF)

Created by the 1876 Constitution to fund higher education systems
- funded by oil revenues and interest

Texas Higher Education Coordinating Board (THECB)

- 9 Governor-appointed members to oversee general higher education policy direction
- hire a permanent commissioner to handle business outside of meetings

How are state Universities run?

Universities each have their own board of regents- a 9 member board to represent the university and implement desired state policies

Sweatt v. Painter (1950)

Successfully challenged the Plessy v. Ferguson "separate but equal" court ruling
(white vs. black law school)

Hopwood v. Texas (1996)

Race can only be used as a factor in admissions, not a basis for them

*Affirmative actions is beneficial in that it may provide essential diversity to campuses

What were some of the changes that lead to the costs of higher education being doubled 2003-2017?

- 2003 Texas Legislature deregulates tuition costs
- increase in population
- higher demand for competent workers
- pressure to compete for students
- relying on student base for funding

What have been some issues surrounding University student success rates and accountability?

Texas students are typically behind in knowledge when they enter college- partly due to losing information over the summer an having low education standards- universities are essentially forced to reteach students when they reach higher education levels

What contributions do Universities make that prove them essential to the state?

Universities provide knowledge and expertise in the form of research to the state
- Universities are also good investments for future business opportunities to attract outside business and revenue

Temporary Assistance for Needy Families (TANF)

- Lone star card for food ($73 per person)
- alcohol/drug free
- seek and maintain employment
- keep children in school

Supplemental Nutrition Assistance Program (SNAP)

- provide food for seniors, disabled, and low income families
-$273 per family
- minimum 20 hr work week
- No ready made meals, cigarettes, alcohol, cosmetics, or paper products

Are social welfare programs made to holistically provide poor people amenities?

Social welfare programs are implemented to be supplemental to an additional source of income (jobs)

Medicaid

Medical coverage for low income families, disabled, and seniors

How does underemployment effect the Texas economy?

Underemployment: job paying an unlivable wage- leads to person getting 2+ jobs, is an epidemic in Texas in which those who rely on welfare programs may never be able to get out due to inaccessibility of higher paying jobs

Children's Health Insurance Program (CHIP)

Health care for children of families who make too much money to qualify for medicaid but still cannot afford insurace

Medicare

Health insurance for low income families, seniors, and disabled

20th century oil boom influenced Texas economy how?

- turned Texas from agrarian to urban
- created a staple economic income from oil and gas production

How did the oil crisis during the 1970's effect the Texas economy thereafter?

After relying on oil production as a staple in its economy, Texas was forced to develop a more diversified economy to prevent the rises and falls of the oil business, all while keeping oil production as a cushion to other crises in the economy of Texas.
- Ex: adopted fracking

Fracking

Hydraulic fracturing of underground rock formations with high pressured chemicals and water to force natural gas to the surface for extraction
*Texas provides 1/3 of natural gas to the US

What are the consequences of the increasingly used method of fracking in Texas?

- Uses large amounts of water
- water and air contamination by chemicals like methane and benzene
- Earthquakes in Texas (yikes)

Texas leads the nation in wind energy production, which in turn caused what effects on its economy?

- Urban development skyrocketed in rural areas around West Texas
- powers the states largest cities- Houston, Dallas, Austin
- accounts for 10% of the states electric energy production

The hazardous waste site in West Texas, which accepts waste from 36 other states, poses what threat to the environment?

The site is set directly over the Ogallala Aquifer; one of the world's largest aquifers
- could cause water radiation contamination

Texas Commission on Environmental Quality (TCEQ)

Consists of 3 Governor-appointed commissioners and one hired executive, responsible for;
- Enforcing federal environmental policies/regulations
- Implementing additional state regulations

Regulations implemented by the state and federal governments are intended to prevent:

negative externalities

Negative externalities

An external cost to individuals who did not participate in the transaction affecting them
Ex: air pollution via cars, mineral rights, etc.

What contributes to Texas being the 1st in the nation in carbon dioxide emissions and 10th in toxic air pollution?

TCEQ implemented flexible permits on the ppm limit to air pollution, which extended the ppm cap from the source to the entire facility. Now, instead of capping each source, the cap is placed on the average of the entire facility.

Major droughts across Texas in 2012-2014 caused major issues of water availability, including:

- Beef production/cattle industry was severely cut; farmers were forced to sell/abandon cattle
- Cities and counties relied on pumping vast amounts of ground water causing subsidence of heavy populated areas

Subsidence

Geographical sinking of a region due to excess pumping of water out from underneath it
- Creates geographical "bowls" (Houston, NOLA) which in turn are disastrously prone to flooding

Rule of capture

An individual who owns property owns the water underneath it

How does Texas fund its road construction and maintenance?

Oil and gas tax, road-user fees, federal funds, and tolls

What are the consequences of the gas tax not being increased since 1991?

Because Texans are reluctant to pay gas taxes...
- People increasingly buy hybrid/fuel efficient cars and contribute less to paying gas taxes = loss of gas tax funds
- Not enough revenue from gas taxes being raised or payed force government to rely on federal funds
- Government relies on PPP's to build and maintain roads, but usually at a cost to users of those roads
... The loss of revenue and funding of roads result in Texas having one of the lowest funds with the highest amount of roads

Good Roads Amendment 1946

75% of road-user fees will go to highway construction and maintenance and 25% will go to education

TxDOT, established in 1991, is responsible for:

- Construction and maintenance of state roads and highways
- Development of mass transit systems

Sunset reviews (for TxDOT?)

Formal assessment of the effectiveness of state agencies
*Occurs every 12 years for TxDOT, although it has been recommended to be increased to 4 years

Public-Private Partnerships (PPP's)

PPP's build and maintain government infrastructure for profit when the government has insufficient funds to do so

PPP's pros and cons

Pros:
- Provide needed road construction and maintenance
- Competition will encourage lower fees/prices associated with usage
Cons:
- Serves as a backdoor tax
- Private companies can increase fees annually

Texas encouraged railroad construction when it was cash-poor by

Providing companies with land incentives for every mile of railroad built... lead to railroad boom

Federal Aid Road Act 1916

Federal government will provide states with highway departments with funds to build roads
- lead to creation of Texas Highway Department

Texas's mass transit systems

- lags in mass transit systems
- some cities use more federal funds than others
Ex: DART, Houston MetroRail, Austin MetroRail

Plyler v. Doe (1982)

Upheld and extended 14th Amendment of equal protection to undocumented immigrants