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Terms in this set (77)why public finance matters affects cost of going to college. tuition skyrocketed in 1st decade of 21st century. tx does not have state income tax know 5 broad categories for tx budget general revenues fund budget general revenues fund budget non dedicated funds: functions as state's primary operating fund general revenue dedicated funds budget dedicated funds for specific purpose federal funds budget grants, payments, and reimbursements from federal gov. other funds budget state highway fund, trust funds, and some other revenue
all funds budget all spending that goes through agencies tx state budget huge amts. of $$$$ constitution mandates a balanced budget. spending and revenue in tx "low service, low tax" trends: spends less than other states. # of state workers is smaller than in other states. ranks high when compared to other sites on the per capita federal dollars flowing into the state defunding higher education: what are the effects on college enrollment? video government isn't giving enough money to colleges anymore. colleges need to revoker funds lost. colleges raise tuition due to this. he talk about the benefits of higher education. proposes 4 things: invest more in colleges. spend more efficiently. provide other ways to help families pay for college. stop cutting the funds. revenue in tx: taxes taxes are important. texans pay $44.97 for every $1,000 of personal income. sales tax = 8.25% regressive tax type of tax where the burden falls more heavily on lower income people ex: sales tax progressive tax type of tax where the tax burden falls more heavily on upper income individuals ex: state income tax few politicians support income tax in tx. biggest source of revenue in tx? sales tax history w/ state income tax unpopular w/ texans. texans ratified constitutional amendment required any personal income tax to be approved by voters other state revenue 2nd largest source of revenue for tx = federal gov. federal funds account for 34% of total state revenue tobaccos settlement (1998) tobacco companies pay tx 17.3 billion over the next 25 years tx constitution and the budget legislature writes 2yr budget and meets every 2 yrs. = little time to analyze budget agencies must project 2 yrs out. constraints on the budget!!!! pay as you go limit: state maintain balanced budget . bills that require money must be approved by comptroller. 1% of tx budget spent on welfare. limits on Amt. of tx debt: cannot exceed 5% of state revenue budgetary process tx has "dual budget" system: shred by governor's office, gob, and lbb. 2 stage process: 1)development of draft budget by LBB. what is public policy? outputs of gov. institutions. why does policy making matter? duty of state. gov. may contribute funds. policy making process 1) problem identification 1) Problem identification identify problem. ex: problem of poverty. 2) Policy formulation ideas becomes clarified. strategies are developed 3) implementation policy put into effect 4) evaluation evaluated for effectiveness Possible 5) legitimation policy is established and recognized as legal and constitutional rationality goals and the time of achieving them efficiency maximizing outpost of gov. w/ minimum resources factors that work against rationality governments work incrementally. bounded rationality idea in policy making that decision makers may seek satisfactory solutions to problems that are not necessarily optimal or efficient even though in theory, we have a dual budget system in tx. in practice who is primarily the main player in the budget process? the legislator there is one position in government who is active in the budget process? comptroller education expensive and complex. Brown v. Board of Education (1954) ruled: segregation in schools violated equal protection clause of 24th amendment de facto segregation remains (segregation that occurs naturally by cultural clustering) glimmer-aikin law (1949) framework for tx education. san antonio v. rodriguez (1973) case: constitutionality of using property taxes to fund public school. found: supreme court ruled that funding public schools via property tax did not violate the 14th amendment!!!!!!!!! edgewood idd v. kirby (1989) case: whether funding public schools through property taxes fulfilled tx state constitutions provisions tx supreme court held that the funding system was in violation of state constitution. U.S. supreme court ruled against legislature's response to funding various
funding plans. tx education reform controversy: testing accountability, school choice, assessment standards, school accountability education policy in a new era teacher low salary, low test scores. advocates: vouchers, charter schools, spend more money vouchers increase competition and choice charter private companies that have contract w. government to provide education services criticisms of vouchers encourage middle/upper class students to leave poor students in low funded schools criticism of charter schools drain money from public schools welfare policy in tx (how tx can provide for poor) poverty defined: do not have meant to meat their basic needs 2014, 17.4 percent lived below poverty line The new deal era FDR New Deal program: 1930's. stimulate economy & provide relief to victims of great depression. social security act of 1935: welfare policy ------> aid to families with dependent children (AFDC) Result of New deal programs: tx created department of public welfare 1939 welfare policy in tx: 1960's established medicaid: financing medical services to low income people. "War on poverty": expanded social service programs and federal control on welfare programs tx dpt. of public welfare established (later called health and human services commission) Bonus: Difference between medicare and medicaid? medicare: old people welfare policy in tx: 1970's supplemental security income (SSI) established: 1972 welfare program provides assistance to low income elderly and disabled individuals. participation rates exploded in this time. welfare rolls continue to rise welfare policy in tx: 1990's suspected: created a class that depended on welfare. found: quarter of welfare recipients 1993 were long term WELFARE REFORMS 1996 federal personal responsibility and work opportunity reconciliation act (PRWORA): gave states discretion in administering these programs. programs combined -----> temporary assistance for needy families (TANF) welfare policy in tx: evaluating reforms 2 evaluations: 1) # of people receiving welfare 2) degree to which reforms take people off welfare first measure: reforms success. decline of people on welfare second measure: mixed results on reform. caseloads on TANF fallen, child poverty on the rise medicaid and health care policy poor people. costly program for the state. expected total of $56.2 billion of funds will go towards medicaid programs in tx affordable care act aka obamacare requires individuals to obtain health insurance or pay a penalty. expands medicaid. H20 policy 59% tx water comes form aquifers (groundwater) 40% surface water water consumption increase by 82% in 2060 we use a ton of chlorine to clean our water. aquifer rock that contains groundwater reservoir large natural/artificial lake able to capture and store waters. but difficult to build water laws law of capture: first person to capture the water by pumping it out of the ground owns the water - 1904 water policy: planning authorities tx water development board (TWDB) is primary water planning and financing agency in tx. TWDB duties support development of 16 regional water plans. ewdwards aquifer v. burrell day and joel mcdonald (2012) supreme court case 2 farmers applied to the edwards aquifer authority to pump water for their farm land. state water implementation fund for tx (SWIFT) voters approved amendment creating $2 billion water fund. money came from rainy day fund and transferred to SWIFT emphasis on water conservation and fund more projects REVIEW BELOW ... constitutional facts that affect the budget pay-as-you-go-limit: must maintain balanced budget welfare spending limit: 1% spending for needy children. limits on amt. of debt. sources of revenue in tx taxes - sales tax is the highest low tax low service state no income tax high property tax federal government is 2nd source of revenue stages of public policy (4) problem identification primary complication in tx water policy 40% is surface water 60% is aquifer (underground). ownership of the water!!!!! san antonio v. rodriguez 1973 equal funding in public schools in tx? U.S. supreme court ruled that it didn't violate the equal protection clause that some schools get less funding in poorer areas. SWIFT state water implementation fund for tx the state put aside $2 billion water fund for water conservation projects. during droughts, rural areas etc. tx welfare reforms 1960's - great depression. welfare expanding. administer federal funds from medicaid 1970's - supplementary security income. lots and lots of people were part of welfare programs. 1990's - some reform. people suspected a defendant class. help people to become self sufficient. clinton signed (PRWORA) personal responsibility and work opportunity reconciliation act combined into TANF (temporary assistance to needy families) factors that work against policy making slide: goal of rationality in policy making bounded rationality: decision makers may seek satisfactory solutions to problems that are optimal/efficient tx dual budget system governor's office and state legislature work with the budget. the state legislature has the most influence edgewood isd v. kirby (1989) tx supreme court: equal opportunity for education. said unequal funding violates the tx state constitution SCOPE select committee on public education public education system reform. primary recommendation: no pass, no play rule in sports. 140 recommendations for reform such as higher pay. incentives for teachers to become experts in their area tx groundwater act created water districts to manage groundwater. able to protect groundwater supply glimmer akin laws the need for consistency with public education in tx. curriculum was not the same or centralized authority. it created an umbrella organization that would help create equality in schools, same school terms, teacher salary, textbook. known today as teacher school board. a.k.a. TEXAS BOARD OF EDUCATION
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