POLS 207 Notes - EXAM 3

Local Government

  • HOAs: Homeowners Associations as semi-official entities.

  • Texas Governance: Texas ranks #2 in the number of local governments.

  • Dillon’s Rule: All local governments are created by the state; their powers are limited to what the state grants.

  • County Governments: Texas counties have expansive powers; there are issues of patronage and potential corruption.

  • Civil Service System: Only 9 out of 254 counties have a merit-based civil service.

County Management

  • Commissioners Court: Each Texas county has a governing body composed of 4 elected officials.

    • Responsibilities include:

      • Managing roads and bridges.

      • Establishing alcohol sale policies.

      • Overseeing all county functions.

  • Commissioners courts have executive, legislative, and judicial powers.

County Finance and Operations

  • Privatization and Outsourcing: Raises questions about democratic accountability.

  • Tax Burden: Property owners bear the tax burden, alongside sales and vehicle registration fees.

  • Economic Development Corporations: Entities supported by local revenues.

  • Special Districts Include:

    • Independent School Districts

    • Airport Authorities

    • Hospitals

    • Municipal Utility Districts (MUD)

    • College Districts

Cities - Formation and Structure

  • TX Constitution Mandate: Loving and Harris Counties have a rigid, non-adaptive governmental structure.

  • Formation Process:

    • Minimum 200 people required.

    • Boundaries must be defined and negotiated with the county.

    • 10% of registered voters must agree to place on a ballot.

  • City Charters: Function like a constitution, covering annexation and ordinances.

  • Houston: Notable for its lack of zoning laws; issues like fracking raise local governance questions.

Galveston Plan

  • Developed post-1900 storm, featuring 15 ft storm surge.

Fiscal Policy

  • Fiscal vs. Monetary Policy:

    • Fiscal Policy: Pertains to government spending and taxation, managed by Congress.

    • Monetary Policy: Managed by central banks to stabilize economic goals.

Policymaking Process

  • Scientific Method: Most policy decisions relate closely to this approach.

  • Stages:

    • Agenda Setting: Identifying and prioritizing issues.

    • Policy Formation: Creating strategies to solve problems.

    • Policy Adoption: Legislative action takes place here.

    • Policy Implementation: Policies are put into action by different government agencies.

    • Policy Evaluation: Systematic review of the policy impact and necessary revisions.

Types of Policy

  • Redistributive Policy: Reallocates resources from one group to another.

  • Distributive Policy: Costs spread out, such as sales tax (regressive) and income tax (progressive).

  • Regulatory Policy: Controls over businesses and individuals.

Taxes in Texas

  • No State Income Tax: Texas has over 60 separate taxes with a general sales tax of 6.25% (increased to 8.25%).

  • Gas Tax: 20 cents per gallon, unchanged since 1992.

  • Severance Tax: Tax on oil/gas production (4% revenue).

  • Franchise Tax: Levied on profits/assets, assessed even on non-profitable businesses.

  • Property Tax: Capped at the state level, heavily affects local governments.

Property Tax and Challenges

  • Capping drives local governments to dependency and results in increased burdens on property owners.

  • Progressive vs. Regressive Tax Analysis:

    • Progressive Taxes: Higher rate on higher income (Income Tax).

    • Regressive Taxes: Same rate regardless of income (Sales Tax).

Sources of State Revenue

  • Texas relies on federal funding for a substantial part of its budget.

  • The lottery has generated significant revenue, but education funding remains unequal.

  • Spending and Budgeting: Focus on a pay-as-you-go system; local budgets are $192 billion and inflation on essential services.

Fiscal Tools

  • Tax Expenditures: Temporary tax reductions for certain businesses.

  • Subsidies: Incentives provided for industries, notably for events like the Super Bowl.

Texas Economy

  • Economic Pillars:

    • Oil and gas production

    • Defense manufacturing

    • Agriculture (beef)

    • Technology/information sector

Education Policy

  • Purpose of Education: Aims to create a workforce, strengthen the economy, and enhance citizen engagement.

  • Gilmer-Aikin Act: Envisioned 12 years of mandatory education.

  • Permanent School Fund (PSF): Financial support for schools, aiming for equitable distribution.

Equality in Education

  • Historical cases, such as Delgado v. Bastrop ISD, addressed discrimination in school placements.

  • Funding Mechanisms: Property values greatly influence K-12 funding, often leading to disparities.

Social Policy

  • Services for food and healthcare expenditure significantly impact the state budget.

  • Programs: TANF and SNAP help low-income families but are limited in scope and accessibility.

Immigration Policy

  • Policies affecting undocumented individuals and their economic contributions.

Energy and Environmental Policy

  • Texas stands out for its energy production, particularly in oil, natural gas, and wind.

  • Water Management: Considerations over extraction and usage, with potential future shortages.

Environmental Policy Management

  • Regulatory Agencies: TCEQ oversees but often faces criticism for lax enforcement.

Transportation Policy

  • TxDOT focuses on new road construction and management, often using public/private partnerships, which can obscure accountability issues.

Concluding Notes

  • Public Service Quote: “Public service is a noble calling…” - George H.W. Bush.