POLS exam 3 textbook notes

Who struggles with money more and why?

state, because they have tighter restraints. Federal gov can always borrow more money

The federal government can run __ or __

budget deficits, shortfalls

What are user fees?

hidden taxes for services

What is the most important state revenue?

sales tax

sales tax is…

regressive

property tax is..

regressive

what are excise taxes?

sin taxes on certain goods; varies widely by state

what is the biggest pro to sales tax?

less visible, and they are focused consumption taxes, meaning they don’t change consumer behavior; people will still buy things and not pay attention to the tax.

no taxes on…

necessities to lighten burden on low-income

Quill Corp v North Dakota

State cannot impose sales tax on businesses without a physical location in state. this resulted in severe loss of revenue.

South Dakota v Wayfair

reversed Quill; what determines sales tax is where the consumer resides

yoga tax

new service tax on fitness programs

what is the biggest local government revenue

property tax

an effective tax means…

a tax that varies and has exceptions

proposition 13

capped property tax at 1% and froze rates in 1976

Relationship between economy and property tax

the better we are doing economically, the higher the property tax

intergovernmental transfers and the biggest one

federal to states; medicaid

unfunded mandates

demands from higher government without money to help implement

severance tax

tax added when a state’s resources are taken

tax capacity

tax effort

how willing a community is willing to pay for taxes in exchange for better services

taxes are a direct result of..

political culture which explains state differences

geography’s affect on tax

if an area with lower tax isn’t available, then people are forced to pay

geology’s affect on tax

can be a great source, but is unsteady and doesn’t account for good or bad years

how is debt usually issued?

bonds; fixed rate and day of payment

bonds typically finance…

capital investments

general obligation bond

secured by taxing power, has to be approved by voters

revenue bond

secured by revenue, such as toll road

municipal bonds

income from the development is tax exempt

when does the fiscal year start?

october

how does a budget get passed?

the government budget branch tells agencies to draw budget requests; branch reviews and advises cheif executive who then develops exact budget. Then submits a balanced budget, which legislation reviews and sends back.

balanced budget

the idea that a budget cannot plan for more debt

rainy day funds

in an ideal system, rainy day funds can help stabilize community during times economic decline

when revenue decreases, what’s the first to go?

discretionary funds, which is often education

effect of obamacar/affordable care act

raised medicaid expenses

fiscal federalism

federal government takes care of funding, while the state implements

National Federation of Independent Business v Sebelius

states do not have to expand Medicaid

entitlement programs

Medicaid and welfare; rights granted to citizens under federal law

AFDC was for __ and replaced by __

women and children, TANF

how did TANF decrease how many people were on welfare?

more criteria and less benefits

how are highways funded

gas tax

Lawmakers effect on budget

have little control

GASB

requires states to report how many state employees will be on health benefits

Unfunded Mandates Reform Act

curtained unfunded mandates, but often ignore

ballot initiatives create…

massive headaches for budgeting

job of the governor

executing laws passed by legislation, but also being lead political action and chief spokesperson

how has role of governor changed?

initially had little power due to mistrust and now like mini presidents

plural executive system

governor is one of many elected

how do governors affect laws?

due to veto power, legislators will write laws that will be passed. legislators need governor since he approves state budget and can give jobs

governors serve as ___ ____ ____ due to ability to call on many people

leading party figures

formal powers of governor

power to appoint, power to veto, power to pardon, power to call sessions

plum jobs

governors reward campaign contributors with jobs

split ticket voting is only used for…

governor due to being in low turnout years, and people needing governor specific to their state rather than a party

lame duck seasons

time after election when the old person is still in office, hence they have less influence

in texas, how does the governor affect budget?

he can recommend but has no actual authority

line item veto

veto that rejects portion of bill. unique to governors- president is unable.

power to grant pardons

often at last minute governor will make pardons

power to call sessions

meetings for issues the governor wants to deal with right away, but often planned in advance

popular support

having the people’s support to build bully pulpit

party support

having a majority party in legislature means less vetoes will likely be overturned; the governor is more likely to grant favors

ability to communicate

what the governor says, people listen to more

who is likely to be a governor

middle age white men; recently, more women and more rich outsiders

what is the main need to be governor

ability to raise money for campaigning

biggest threat to a governor while in office

term limits; many have 2 term limits.

why don’t governors get elected as president anymore?

no outsider appeal, don’t spend their time in Washington debating things like legislatives

explain lieutenant governor

used to have no power, but recently has more. deals with issues designated from governor. In texas, he resides over state senate by making the agenda and appointing committee assignments

attorney general

top law officer. finds power by banding together on partisan basis to sue, such as the tobacco industry

Explain HMOs

managed care that contains costs and expands patient coverage; insurance company decides treatment rather than doctor

Explain ACOs

accountable care organization; took over for HMOs, as insurance companies make set budget then let doctors decide care

Dobbs v Jackson Women’s Health Org

overturned roe v wade

Most Medicaid expenses are for what demographic?

older and disabled people

How have the costs of Medicaid been attempted to decrease?

shifting to at-home care for older adults instead of nursing homes

Hawaii Rule

if religious companies do not want to offer contraception, then employees can get it directly from health insurance

Why do hospitals push for expanding Medicaid?

price of uncompensated care is a burden

Why is the Affordable Care Act constitutional?

under congress’s taxing authority

biggest long-term budget problem in state government is…

retired state employee’s healthcare

If people make too little for insurance but too much for Medicaid, then…

county/local government usually aids with community health centers

Why do rural hospitals struggle so much?

reliant on fee-for-service model, cannot afford electronic records and other expensive requirements

CHIP

Clinton made for children in low income families. States have freedom to implement.

golden rule of politics

whoever has the gold makes the rules

origins of welfare

originally in hands of local government. Europe implemented insurances and retirement programs, and USA followed only after Great Depression with unemployment compensation and Social Security. Healthcare nets still in local/state government.

Medicare was implemented by…

Johnson, as to cover hospital bills and physician visits for older adults.

How is Medicare run?

run and financed by federal government

How is Medicaid run?

state-federal paid by general revenue, hence not an unfunded mandate

Explain how Medicaid is a double entitlement program

states have right to a certain amount of federal money for medicaid each year, and individuals who meet eligibility thresholds are entitled to Medicaid service

Tommy Thompson (Wisconsin) and his impact

As AFDC was more expensive, Tommy asked mothers on welfare how he could help. Resulted in providing jobs, childcare, and transportation

AFDC was eventually replaced by …

TANF which has Tommy’s idea, but state’s set requirement and there is far less money

Health Security Act

attempted universal healthcare by Clinton. Defeated because he could not come to compromise.

Dirigo

Maine’s attempt at universal healthcare. Showed that federal backup is needed.

Massachusett’s Universal Healthcare Attempt

made healthcare required, but still not universal as some people would rather pay the fee than to get health insurance; state could not keep up financially, tried looking for coordinated care options

Under the Affordable Care Act, dependents can stay on parent’s insurance until…

26

Texas governor

Budget making power- shares responsibility

Line Item Veto Power- has generally and on appropriation amounts

Legislative votes over veto- 2/3 elected

Authorization for reorganization through executive order- no