Practicing Texas Politics: Finance and Fiscal Policy

These flashcards cover key terms and concepts related to finance and fiscal policy in the context of Texas politics, helping students prepare for their exam.

Regressive taxes

Taxes that take a larger percentage from lower-income earners than from higher-income earners.

Franchise tax

A state tax imposed on businesses operating in Texas, which generated $4.44 billion in the fiscal year 2020.

General Revenue Fund

The primary fund used by Texas to manage state revenue and expenditures.

Biennial budget

A budget covering a two-year period, typical for Texas state budgeting.

Balanced budget

A budget in which revenues are equal to expenditures, avoiding budget deficits.

Sales tax

A significant source of revenue in Texas, with a statewide rate of 6.25% and local rates adding up to 8.25%.

Lottery profits

Funds generated by the Texas lottery, allocated primarily for public education.

Dual budgeting system

A system where the governor’s budget and the legislative budget are developed simultaneously.

Robin Hood plan

A funding equalization system intended to ensure equitable school funding across Texas.

Tobacco Suit Windfall

An $18 billion settlement from a lawsuit against the tobacco industry that provided funds to Texas.

Economic stabilization fund

Also known as the Rainy Day Fund, used to manage Texas’s budget during economic downturns.

Children’s Health Insurance Program

A program providing health insurance to low-income families in Texas.