Deck 11: Budget Policy: the Cost of Diversity

Question 1

Setting aside certain revenues for certain purposes is

A)earmarking.
B)impounding.
C)sequestering.
D)tagging.

Answer 1

A

Question 2

A state "sin" tax is also a

A)corporate tax.
B)sales tax.
C)excise tax.
D)income tax.

Answer 2

C

Question 3

From the government's view, the easiest tax to collect is

A)the property tax.
B)the sales tax.
C)the state income tax.
D)a parking ticket fine.

Answer 3

B

Question 4

A budget is a plan specifying

A)the top priorities of interest groups.
B)revenues and expenditures.
C)a governor's top priorities.
D)tax increases.

Question 5

The planning stage of the state budget is dominated by the governor and the

A)legislature.
B)bureaucracy.
C)group known as the Big Five.
D)state supreme court.

Question 6

A regressive tax addresses the tax criterion of

A)yield.
B)accountability.
C)acceptability.
D)equity.

Question 7

California state budgets have grown over time due to

A)job migration.
B)the North American Free Trade Agreement.
C)recent defense spending increases.
D)economic diversity.

Question 8

The three highest state spending areas do NOT include

A)highways.
B)education.
C)prisons.
D)health care.

Question 9

Cruise control spending refers to spending decisions that

A)are relatively automatic.
B)require voter approval.
C)avoid recorded votes.
D)depend on the economy.

Question 10

The largest source of revenue for the state is the

A)personal income tax.
B)sales tax.
C)lottery.
D)corporate tax.

Question 11

Historic commitment to low-cost higher education is an example of budgeting as a

A)contract.
B)premier policy statement.
C)political statement.
D)reflection of the state.

Question 12

On average, the largest expenditures for cities are

A)public safety.
B)public utilities.
C)community development.
D)for culture and leisure.

Question 13

The second largest source of state revenue is the

A)personal income tax.
B)sales tax.
C)lottery.
D)corporate tax.

Question 14

The term referring to budget decision making is

A)Department of Finance.
B)legislative process.
C)budget process.
D)appropriation process.

Question 15

Local government increasing depends on

A)the property tax.
B)local revenue bonds.
C)state and federal aid.
D)assessments, service charges, and fees.

Question 16

The percentage of votes needed to pass the state budget is a

A)simple majority vote.
B)two-thirds vote.
C)three-fourths vote.
D)unanimous vote.

Question 17

On average, the largest expenditures for counties are

A)public protection.
B)health and sanitation.
C)public assistance.
D)general government.

Question 18

Budget leadership is exercised by the Big Five, consisting of the governor and legislative

A)committee chairs.
B)staff members.
C)party leaders.
D)majority leaders.

Question 19

Basing decisions on what was spent the year before is

A)incrementalism.
B)gridlock.
C)budget planning.
D)historical practice.

Question 20

Which of the following is NOT of California budgeting?

A)It does not need reform.
B)It is cyclical.
C)It is group-different.
D)It really needs reform.

Question 21

Normally capital improvements are funded through _____ .

Question 22

Internal borrowing from pension funds is costly because it requires payment of _____ .

Question 23

K-12 education's share of the state budget is about______ .

Question 24

California's version of welfare is called _____ .

Question 25

The governor and legislature tend to borrow from pension funds when ____ .

Question 26

Whatever government chooses to do is called _____ .

Question 27

The state lottery is essentially regressive for _____ .

Question 28

Bills specifying exact taxes or spending formulas necessary for the state budget are _____ .

Question 29

The cut in property taxes due to Proposition 13 was followed by an increase in local ____ .

Question 30

Payments to individuals who meet certain eligibility requirements are ______ .

Question 31

Basing this year's spending on last year's is called ______ .

Question 32

The state sales tax is inherently _____ .

Question 33

California's version of federal Medicaid is called ______ .

Question 34

Bonds backed by "full faith and credit" are called _____ .

Question 35

Automatic upward adjustments in entitlement spending are ______ .

Question 36

The state income tax is one of the nation's most _____ .

Question 37

A franchise tax is levied on ____ .

Question 38

A plan to raise and spend money is called a _____ .

Question 39

The state debt is limited by _____ .

Question 40

Ballot box budgeting refers to budgeting decisions made through the _____ .

Question 41

How is the budget a fight over values?

Question 42

What makes the budget process difficult?

Question 43

How have voter initiatives impacted on local government budgets?