Budget Policy Lecture Notes

Flashcards covering key terms and concepts related to budget policy, taxation, and fiscal politics based on the lecture notes.

Budget policy

The process by which budgets are created, modified, and approved, affecting governmental spending and revenue.

Property tax

A tax assessed on real estate properties based on their appraised value, primarily used to fund local governments.

Sales tax

A consumption tax imposed on the sale of goods and services, which is based on the price of the items sold.

Income tax

A tax assessed on individual or corporate income, which can vary based on different income levels.

Homestead exemption

A legal provision that helps shield a portion of the value of a primary residence from property taxes.

Legislative Budget Board (LBB)

A Texas government entity that plays a key role in the budget process, composed of legislative leaders who develop budgetary guidelines.

Cumulative impact

The overall effect of various tax policies on taxpayers, especially in relation to changes in property values and local funding.

Discretionary income

The amount of money individuals have available after necessary expenses, which is often subject to taxation through various means.

Dedicated funds

Specific funds set aside by law that cannot be used for purposes other than those designated by legislation.

Fiscal politics

The political processes involved in determining government spending and revenue generation methods.

Revenue

The income generated from taxes and fees that governments collect to fund public services.

Evaluation metrics

Standards used to assess performance or effectiveness in budget management and educational evaluations.

Tax relief legislation

Laws enacted to reduce the tax burden on individuals or entities, often in response to public discontent about rising taxes.

Economic forecast

Estimations about future economic conditions that guide budgeting and fiscal planning by governments.

State Comptroller

The state official responsible for overseeing financial operations and ensuring accountability in government spending.

Zero-sum game

A situation in which any gain by one party results in a loss by another; often used in the context of budget allocation.

Fiscal year

A one-year period used for calculating annual financial statements in businesses and governments, often different from the calendar year.