Chapter 11

1. Chapter 11 Finance

2. Question • In March 2006, when Governor Rick Perry testified before Congress requesting federal reimbursement for services furnished to hurricane refugees, he was advised to “[get] back to being a good neighbor and not a paid companion” by • Representative Tom DeLay. • Senator “Kit” Bond. • Vice President Dick Cheney. • House Speaker Dennis Hastert.

3. Answer • In March 2006, when Governor Rick Perry testified before Congress requesting federal reimbursement for services furnished to hurricane refugees, he was advised to “[get] back to being a good neighbor and not a paid companion” by • Representative Tom DeLay. • Senator “Kit” Bond.* (Correct. See page 440.) • Vice President Dick Cheney. • House Speaker Dennis Hastert.

4. Question • Texans have indicated in poll after poll that they favor regressive taxes that fall most heavily on • rich people. • middle class people. • poor people. • corporations.

5. Answer • Texans have indicated in poll after poll that they favor regressive taxes that fall most heavily on • rich people. • middle class people. • poor people.* (Correct. See page 441.) • corporations.

6. Question • Faced with a court ruling mandating a change in school finance, in 2006 the Texas Legislature • modified and expanded the franchise tax. • increased the tax on cigars. • repealed a tax on the purchase of used cars based on presumptive value. • reduced the tax on cigarettes.

7. Answer • Faced with a court ruling mandating a change in school finance, in 2006 the Texas Legislature • modified and expanded the franchise tax.* (Correct. See page 446.) • increased the tax on cigars. • repealed a tax on the purchase of used cars based on presumptive value. • reduced the tax on cigarettes.

8. Question • In most years, the Texas Racing Commission collects revenue from horse and dog racing that amounts to • about 25 times the amount of its operating expenses. • about 15 times the amount of its operating expenses. • about 5 times the amount of its operating expenses. • less than its operating expenses.

9. Answer • In most years, the Texas Racing Commission collects revenue from horse and dog racing that amounts to • about 25 times the amount of its operating expenses. • about 15 times the amount of its operating expenses. • about 5 times the amount of its operating expenses. • less than its operating expenses.* (Correct. See page 452.)

10. Question • Texas’s Economic Stabilization Fund, which is intended for use when the state faces an economic crisis, is called • the “permanent” fund. • the “general revenue” fund. • the “rainy day” fund. • the “securitization” fund.

11. Answer • Texas’s Economic Stabilization Fund, which is intended for use when the state faces an economic crisis, is called • the “permanent” fund. • the “general revenue” fund. • the “rainy day” fund.* (Correct. See page 456.) • the “securitization” fund.

12. Question • Compilation of each biennial state budget begins with the preparation of forms and instructions by • the Office of the Comptroller of Public Accounts. • the Office of the State Auditor. • the House Appropriations Committee and the Senate Finance Committee • the Legislative Budget Board and the Governor’s Office of Budget, Planning and Policy.

13. Answer • Compilation of each biennial state budget begins with the preparation of forms and instructions by • the Office of the Comptroller of Public Accounts. • the Office of the State Auditor. • the House Appropriations Committee and the Senate Finance Committee • the Legislative Budget Board and the Governor’s Office of Budget, Planning and Policy.* (Correct. See page 457.)

14. Question • The Texas Higher Education Coordinating Board’s Closing the Gap’s initiative aims at • raising student tuition 50 percent and reducing faculty salaries 25 percent prior to year 2010. • making every state university athletic team a national championship contender prior to year 2025. • convincing nationally renowned scholars to take 10 percent of professorships at Texas's institutions of higher education prior to year 2020. • increasing the number of Texas college students by 630,000 over year 2000 enrollment levels prior to year 2015.

15. Answer • The Texas Higher Education Coordinating Board’s Closing the Gap’s initiative aims at • raising student tuition 50 percent and reducing faculty salaries 25 percent prior to year 2010. • making every state university athletic team a national championship contender prior to year 2025. • convincing nationally renowned scholars to take 10 percent of professorships at Texas's institutions of higher education prior to year 2020. • increasing the number of Texas college students by 630,000 over year 2000 enrollment levels prior to year 2015.* (Correct. See page 467.)

16. Question • In 2005, the Texas Access Alliance (led by a Bermuda-based outsourcing firm) took over enrollment responsibilities for • the Children’s Health Insurance Program. • all of Texas’s state universities. • all of Texas’s community colleges. • the TEXAS (Toward Excellence, Access, and Success) Grants Program.

17. Answer • In 2005, the Texas Access Alliance (led by a Bermuda-based outsourcing firm) took over enrollment responsibilities for • the Children’s Health Insurance Program.* (Correct. See page 471.) • all of Texas’s state universities. • all of Texas’s community colleges. • the TEXAS (Toward Excellence, Access, and Success) Grants Program.

18. Question • The Trans-Texas Corridor is a private sector-pubic sector partnership intended to transform the Lone Star State’s • higher education system. • public education system. • transportation system. • hospital system.

19. Answer • The Trans-Texas Corridor is a private sector-pubic sector partnership intended to transform the Lone Star State’s • higher education system. • public education system. • transportation system.* (Correct. See page 472.) • hospital system.

20. Question • A 2003 study issued by Comptroller Carole Keeton Strayhorn concluded that Texas faces a • budget crisis. • spending crisis. • taxing crisis. • auditing crisis.

21. Answer • A 2003 study issued by Comptroller Carole Keeton Strayhorn concluded that Texas faces a • budget crisis. • spending crisis.* (Correct. See page 474.) • taxing crisis. • auditing crisis.

22. Question • See the readings. As concerns spending on the state’s parks, the 17-member Texas State Parks Advisory Committee • recommends that spending should stay at the same level. • recommends that spending should be increased dramatically. • recommends that spending should be reduced moderately. • makes no recommendation.

23. Answer • See the readings. As concerns spending on the state’s parks, the 17-member Texas State Parks Advisory Committee • recommends that spending should stay at the same level. • recommends that spending should be increased dramatically.* (Correct. See page 479.) • recommends that spending should be reduced moderately. • makes no recommendation.

24. Question • See the readings. Among critical priorities outlined by Governor Rick Perry is • restricting access to the state’s educational system in order to ensure quality. • reducing job opportunities in order to induce undocumented immigrants to leave Texas. • reducing health and safety for citizens in order to control population growth. • providing disciplined, principled government that invests public funds wisely and efficiently.

25. Answer • See the readings. Among critical priorities outlined by Governor Rick Perry is • restricting access to the state’s educational system in order to ensure quality. • reducing job opportunities in order to induce undocumented immigrants to leave Texas. • reducing health and safety for citizens in order to control population growth. • providing disciplined, principled government that invests public funds wisely and efficiently.* (Correct. See page 480.)