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Understanding Texas Government and Budgeting

Vocab Test 4 Details

Dual Budgeting

  • Definition: The compilation of separate budgets by the legislative branch and the executive branch.

DNA

  • Definition: The genetic material that serves as a unique genetic fingerprint, used in criminal investigations.

TEKS (Texas Essential Knowledge & Skills)

  • Definition: A core curriculum setting out what students should learn in Texas.

Texas Commission on Jail Standards

  • Definition: A state regulatory agency responsible for establishing and enforcing minimum standards for the construction and operation of county and privately operated municipal jails.

Economic Stabilization Fund (Rainy Day Fund)

  • Definition: A fund used like a savings account for stabilizing state finances and helping the state meet economic emergencies when revenue is insufficient to cover state-supported programs.

Budget Execution

  • Definition: The process whereby the governor and the Legislative Budget Board oversee the implementation of the spending plan authorized by the Texas Legislature.

Public Policy

  • Definition: What government does to meet a public need or goal as determined by a legislative body or authorized officials.

Practice Questions

  1. Budget Definition: A plan of financial operation that shows the expected revenue that a government expects to collect during a period of time and the amount of spending that is authorized for agency programs is known as a/an budget.

  2. General Sales Tax: Refers to Texas' largest source of tax revenue.

  3. Recidivism: Criminal behavior that results in an individual being reincarcerated/re-jailed after being released from prison for a prior offense.

  4. Plea Bargain: An agreement between the prosecutor and the defendant in a criminal case in which the defendant agrees to plead guilty to a specific charge and receives certain concessions from the prosecutor, such as probation.

  5. Medicaid: A federal program that provides medical assistance to the poor.

  6. Texas Tomorrow Funds: Comprises the Texas Guaranteed Tuition Plan and Tomorrow's College Investment Plan.

  7. Lottery Commission: Administers the lottery to generate revenue for the state's programs.

Understanding Prompts

Differences between SNAP & TANF

  • TANF (Temporary Assistance for Needy Families):

    • Definition: Provides limited cash assistance to extremely poor families aimed at moving them from welfare to the workforce.
    • Restrictions: Benefits can be spent for various needs.

  • SNAP (Supplemental Nutritional Assistance Program):

    • Definition: Formerly known as food stamps; makes food available to elderly or disabled individuals, families, and single adults who qualify due to low income (defined as more than 130% of the poverty level).
    • Conditions: Benefits vary depending on income and household size; adults aged 16-59 must seek work or participate in an approved work program and cannot quit a job without good reason.

Discuss Revenue Sources and Budget Expenditures

  • Texas Revenue Sources:

    • Tax revenue (including general sales tax, taxes on specific items such as cigarettes and motor vehicles, gross receipts from businesses).
    • Oil and gas royalties, land sales, and federal grants-in-aid.

  • Funding for Government Services:

    • Primarily derived from taxes and supplemented by the Rainy Day Fund, functioning like a savings account intended for emergencies.

  • Budget Expenditures Classification:

    • Functional Budget: Services provided by the government.
    • Objective Budget: Categorization of spending by the object of expenditures, such as employees' salaries.

Workers' Compensation

  • Definition: A system of insurance that pays benefits to workers who are injured or made ill by their work.
    • History: Texas has had a workers' compensation program since 1913 to help injured workers receive medical care and recover lost wages.
    • Regulatory Body: The Division of Workers' Compensation (DWC) of the Texas Department of Insurance governs the system.
    • Unique Aspect: Texas is the only state in the union that does not mandate employers to provide workers' compensation insurance; failure to do so places employers at risk for expensive lawsuits.

Texas Commission on Jail Standards

  • Responsibility: Oversight of county jails, establishing and enforcing minimum standards for municipal jails.
  • Inmate Care: Regulations include dealing with inmates at risk of committing suicide, including face-to-face monitoring.

Joint Federal-State Programs

  • Examples: Medicaid, TANF, and SNAP.
    • Medicaid: Provides medical care for the poor, funded primarily by federal grants with state appropriations; administered by the state.
    • TANF: Offers financial assistance to the very poor to transition them from welfare to the workforce.
    • SNAP: A joint federal-state program that provides food assistance to low-income individuals.

State Budgetary Processes

  • Period: The budget period in Texas covers two fiscal years, beginning on September 1 and ending on August 31.

Budget Cycle Phases

  1. Year 1 (Planning & Proposal):

    • Develop strategic plans, including mission statements and goals.
    • Submit to Governor's Office of Budget and Policy (GOBP) and Legislative Budget Board (LBB) for approval.
    • Detailed legislative appropriations requests (LARS) created by agencies outlining funding needs and performance measures are submitted to GOBP, LBB, and the Comptroller in the fall.
    • Budget hearings held by GOBP and LBB to review LARS with state agencies.
    • Drafting of the General Appropriations Act by the LBB based on submitted LARS.

  2. Year 2 (Legislative Action & Approval):

    • Texas Legislature convenes for a session with the Comptroller issuing a biennial revenue estimate.
    • Bill reviewed by Senate Finance Committee and House Appropriations Committee.
    • Floor Vote: The bill undergoes committee review and potential markup before being voted on by each chamber.
    • A conference committee resolves differences between the House and Senate versions of the bill.
    • The reconciled bill is sent for final approval from both chambers and the Comptroller before being sent to the Governor for signature.

  3. Implementation & Monitoring:

    • The approved budget takes effect on September 1 of odd-numbered years.
    • Oversight by LBB and State Auditor's Office to monitor compliance with the budget.
    • Budget Execution Authority: The Governor and LBB can shift funds between programs or agencies as needed during the budget period.