Texas Counties, Cities, and State Finances

Texas Counties and Special Districts

County Government Structure

  • A county is a major unit of local government that varies in function and size.
  • Typical structure includes:
    • Elected County Board (governing body).
    • Appointed Planning Commission, Budget Committee, and County Agent.
    • Various Boards and Officials (Board of Health, Welfare Commission, etc.).
  • Other County Officials:
    • Sheriff: Provides police protection, carries out court orders.
    • County Clerk: Registers and records documents.
    • Assessor and Collector of Taxes: Appraises property and collects taxes.
    • County Treasurer: Manages county funds.
    • District Attorney: Prosecuting attorney.
  • The commissioner’s court, consisting of four commissioners and a county judge, is the governing body of a Texas county.

Special Districts

  • Special districts are independent units that perform specific governmental functions at the local level (approximately 3,200 in Texas).
  • They address needs not met by existing governmental units and focus on specific problems.

Texas School Districts

  • Governed by an elected board of trustees (up to seven members).
  • Responsibilities include:
    • Hiring and firing teachers.
    • Building new schools.
    • Buying school supplies.
    • Setting district school tax rates.
    • Selecting a superintendent.

Cities and Metropolitan Areas in Texas

America’s Rural-Urban Shift

  • Shift from rural to urban began with the Industrial Revolution.
  • In 1790 5\% of the U.S. population lived in cities; today, more than 75\% live in cities and suburbs.
    • Increased strain on local governments for services.

City Government Forms

  • General-Law Cities: Fewer than 5,000 residents, operate under Texas State legislature rules.
  • Home-Rule Cities: More than 5,000 residents, can draw up their own charter.
  • Mayor-Council Form:
    • Strong Mayor Model: Mayor is chief executive with significant appointment powers.
    • Weak Mayor Model: Mayor shares power with the council.
  • Commission Form: Commissioners serve as department heads and form the city council.
  • Council-Manager Form: A city manager is appointed by the council to handle administrative duties.

City Planning

  • Planning agencies create master plans for future growth.
  • Zoning: Dividing a city into districts (residential, commercial, industrial) to regulate property uses.

Municipal Functions

  • Include public utilities, housing, parks, building codes, sanitation, police and fire protection, and infrastructure.

Suburbs and Metropolitan Areas

  • Suburb growth boomed after World War II due to desires for more space and cheaper land.
  • Businesses moved to suburbs for economic benefits.
  • Metropolitan governments and special districts address service needs across city and county lines.

State and Local Government Services

State Government’s Role

  • U.S. Constitution reserves powers to States not delegated to Congress.
  • State responsibilities include justice, domestic tranquility, common defense, general welfare, and liberty.

Services Provided

  • Texas State and Local Governments provide education, public welfare, public safety, highways, and other services.

Financing State and Local Government

Limits on Raising Revenue

  • Federal limitations: States cannot tax interstate commerce or the Federal Government.
  • State limitations: State constitutions limit taxing powers.

Principles of Sound Taxation

  • Proportional contribution based on ability.
  • Certainty and not arbitrary.
  • Convenient timing and manner.
  • Revenue should match government needs.

Sources of Revenue

  • Major sources: sales tax, property tax, federal government, and other taxes/licenses.
  • Texas relies heavily on sales tax, a regressive tax.
  • Texas does not levy income tax.

Texas State Budget Process

  • Governor and Legislative Budget Board (LBB) develop budget strategy.
  • Agencies submit needs estimates.
  • Estimates reviewed by the governor and LBB.
  • Legislature holds hearings, votes on the bill.
  • Comptroller certifies fund availability.
  • Governor signs the bill.
  • LBB and State Auditor’s Office monitor compliance.