Name: __________________
1
Class:
Date: _____________
Texans have indicated in poll after poll their preference for regressive taxes that
a. equally distribute taxes among both rich and poor.
b. favor the rich and fall most heavily on the poor.
c. limit taxes among the poor while heavily taxing the rich.
d. decrease the longer one is in the workforce.
2
Before a state income tax can be levied, the state constitution requires a
a. majority vote in the House.
b. majority vote in the Senate.
c. popular referendum.
d. majority vote in both houses.
3
What do Texas legislators often do when they are reluctant to raise taxes but still need to find a
way to finance government?
a. pull money from appropriated funds
b. host legislative fundraisers
c. assess fees and surcharges on the state's residents
d. ask the federal government for increased stimulus funds
4
What is the most important source of state revenue?
a. property tax
b. income tax
c. fees and assessments
d. sales tax
5
What accounting trick was used by the Texas legislature to give the appearance of a balanced
budget?
a. refusing to appropriate portions of dedicated funds
b. forging numbers on budgetary documents
c. hiding debt in lengthy written bills
d. disestablishing the sunset committee
PAGE 1
Name: __________________
6
Class:
Date: _____________
Texans tend to be more tolerant of government spending related to
a. welfare programs.
b. recreational facilities.
c. health care.
d. highways and roads.
7
Which of the following is subject to a selective sales tax?
a. floral arrangements
b. blue jeans
c. pets
d. hotel rooms
8
What is a severance tax?
a. a tax levied against a portion of an individual's lottery winnings
b. a tax levied on a natural resource when it is removed from the earth
c. a tax levied on a property when it is sold
d. a tax levied against a portion of the wages and salaries paid to individuals to insure
employees against unemployment.
9
The Tax Foundation places Texas ________ the national average for the tax burden imposed
on its residents.
a. slightly above
b. right on par with
c. well below
d. well above
10 Almost all profits from the state's lottery are dedicated to
a. the Economic Stabilization Fund.
b. the General Revenue Fund.
c. highways and road improvements.
d. public education spending.
PAGE 2
Name: __________________
Class:
Date: _____________
11 Where does the state's largest portion of nontax revenue come from?
a. income from investments
b. public land sales
c. fees and permits
d. federal grants
12 What is the purpose of the Economic Stabilization Fund?
a. to increase the investment potential of that state's securities and interest-bearing
accounts
b. to prevent or eliminate temporary cash deficiencies in the General Revenue Fund
c. to assist unemployed Texans during a depressed economy
d. to cover deficiencies in any state-issued retirement funds
13 In Texas, the budget period covers
a. a 6-month period.
b. two fiscal years.
c. three fiscal years.
d. one fiscal year.
14 Which organization is required by statute to prepare and present the state budget to the
legislature?
a. the Legislative Budget Board
b. the Office of the Attorney General
c. the Governor's Office of Budget, Planning, and Policy
d. the Office of the Texas Comptroller of Public Accounts
15 What is the state's functional budget composed of?
a. projected revenue from both tax and nontax sources
b. staff salary and operating expenses for all governmental departments
c. funds distributed to the state through federal aid
d. the services being purchased by the government
PAGE 3
Name: __________________
Class:
Date: _____________
16 Michael works for the Texas Department of Aging and Disability Services and needs to
purchase new computers for the department office. How should Michael proceed with making
this purchase?
a. by filing a request with the Legislative Budget Board
b. by contacting the Texas Procurement and Support Services
c. by filling out a grant application and submitting it to the Council on Competitive
Government
d. by pulling money from the agency's general revenue fund
17 In addition to managing state facilities like the Texas State Cemetery, the Texas Facilities
Commission also
a. manages football tailgating on state property in Austin.
b. negotiates contracts with airlines, rental car agencies, and hotels to obtain lower prices
for personnel traveling on state business.
c. hosts biennial special events to highlight the state's best facilities.
d. gets hired by private companies to manage their facilities.
18 Kelly works for a state agency that provides random checks of financial records and transactions
after expenditures and examines the activities of each state agency to evaluate the quality of its
services, determine whether duplication of effort exists, and recommend changes. Kelly most
likely works for the
a. Attorney General.
b. Comptroller of Public Accounts.
c. Texas Facilities Commission.
d. state auditor.
19 What was the intention of the Gilmer-Aiken Law?
a. to establish charter schools in every county
b. to establish maximum class sizes and teacher-student ratios
c. to provide a minimum level of state support for every public school student
d. to provide tutoring for non–English-speaking students
PAGE 4
Name: __________________
Class:
Date: _____________
20 Public higher education funding in Texas suffers from the dual pressures of ________ and
________ .
a. increasing fraud; increasing public scrutiny
b. declining state support; increasing enrollment
c. increasing dropouts; decreased federal funding
d. decreasing enrollment; declining state support
21 Who receives funding from the TEXAS Grants Program?
a. private vocational schools
b. Texas students who meet certain requirements
c. medical schools
d. community colleges
22 What is one way Texas's political leaders hope to address poverty?
a. by increasing funding to welfare programs
b. by enrolling more students in higher education
c. by applying for federal grants
d. by incorporating a stimulus package for the poorest Texans in the next biennial budget
23 Which of these is NOT a method of financing Texas road construction?
a. motor vehicle registration fees
b. motor fuel taxes
c. Federal Highway Trust Fund
d. state sales tax
24 What is the purpose of the Texas Mobility Fund?
a. It provides financial reimbursement to Texans who use public transportation.
b. It collects motor vehicle registration fees and saves them until they are needed for road
construction.
c. It finances any public transportation project that decreases dependency on cars and
highways.
d. It allows the state to issue bonds and use the proceeds for road construction.
PAGE 5
ANSWER KEY
Copy of
1. b
9. c
17. a
2. c
10. d
18. d
3. c
11. d
19. c
ANSWER KEY - Page 1
4. d
12. b
20. b
5. a
13. b
21. b
6. d
14. c
22. b
7. d
15. d
23. d
8. b
16. b
24. d