Finance and Fiscal Policy Summary✅

These flashcards summarize key concepts and facts from Chapter 11 on Finance and Fiscal Policy, focusing on Texas's budgeting, taxing policies, and public service funding.

What did Texas Comptroller Glenn Hegar submit to the 86th Texas Legislature in January 2019?

His Biennial Revenue Estimate.

What was one major concern highlighted by Hegar's 2019 estimate?

Heightened uncertainties in the oil and gas industry, investment markets, and U.S. trade policies.

During the COVID-19 pandemic, how many jobs did Texas lose by November 2020?

Almost 475,000 jobs.

What is the Rainy Day Fund?

A fund used like a savings account for stabilizing state finance and helping the state meet economic emergencies when revenue is insufficient.

What did the 86th Legislature do regarding Texas's low-tax approach?

They were able to extend Texas's traditional low-tax approach to fiscal policy.

What is the General Revenue Fund?

An unrestricted state fund that is available for general appropriations.

What is the franchise tax?

A tax levied on the annual receipts of businesses that are organized to limit the personal liability of owners for the privilege of conducting business in the state.

What was the Texas Legislature's method for achieving a balanced budget during difficult economic times?

By using accounting maneuvers like deferring mandatory payments and encouraging early tax payments.

What does the term 'regressive tax' mean?

A tax in which the effective tax rate decreases as the tax base increases.

How does Texas rank in terms of state tax burden compared to the national average?

Texas places well below the national average for the state tax burden imposed on its residents.

What is the major source of tax revenue for Texas?

Sales taxation.

What is meant by 'fiscal policy'?

Public policy that concerns taxing, government spending, public debt, and management of government money.

What are some examples of revenue sources for public schools in Texas?

Available School Fund, Property Tax Relief Fund, and the Texas Lottery.

In what ways can the Texas Legislature manipulate budget accounts during fiscal shortfalls?

By freezing unappropriated balances, modifying deductions, and utilizing the Rainy Day Fund.

What significant funding change for public education was implemented by the 86th Legislature?

Increased state funding for public education while lowering local property taxes.

What was the purpose of the 'Texas Tomorrow Funds'?

To provide a way for parents to save for their children's education and to lock in the cost of tuition and fees at public colleges and universities.

What is one outcome Texas education policy aims to achieve regarding community colleges?

Increase the number of students achieving associate degrees within a shorter time frame.