Deck 10: Paying the Bills: Californias Budget Struggles

Question 1

Describe the timeline and the key decision makers involved in the state budget process and explain the role of special interest groups, both public and private.

Answer 1

No answer

Question 2

Discuss California's budget process, revenues and expenditures (Figures 10.1 to 10.3 (in the text)). What is the role of borrowing in California's state budget and services?

Answer 2

No answer

Question 3

Describe the key features of Proposition 13 (1978) and its long-term impacts on California's budget and services.

Answer 3

No answer

Question 4

Describe and discuss the primary sources of state revenue. Do you think they are well structured? Why or why not?

Question 5

Explain the purpose of bond measures in California's public spending.

Question 6

The largest source of revenue in the state budget comes from

A) the sales tax.
B) the personal income tax.
C) the business tax.
D) A and B are correct.

Question 7

With regard to the state budget, a major difference between Republicans and Democrats is that

A) Democrats tend to favor closing loopholes that benefit the wealthy to protect low-income residents.
B) Republicans want to double taxes.
C) Democrats want all the money to go only to schools.
D) Republicans want to fund more colleges.

Question 8

In order for the state budget to pass in each house, it takes a

A) simple majority.
B) 55 percent majority.
C) a two-thirds vote.
D) a plurality.

Question 9

With the passage of Proposition 13 (1978), all property taxes were limited to what percentage of the assessed value of the property?

A) 3 percent
B) 22 percent
C) 55 percent
D) 1 percent

Question 10

The long-term impact of Proposition 13 include

A) shifted local control to Sacramento-based funding for local governments.
B) protects longtime property owners from tax increases.
C) tends to favor commercial over residential owners.
D) A, B, and C are correct.

Question 11

The general fund includes state income tax, sales tax, bank and corporate taxes, and interest earned by the state on money not currently in use.

Question 12

Proposition 98 (1988) requires the state to to spend 40 percent of its annual income on K-14 education..

Question 13

Voters are directly involved when the state wants to borrow money through bond measures.

Question 14

Proposition 25 changed the vote requirement in the legislature to pass a budget from a supermajority to a simple majority.

Question 15

The budget is subject to a item veto that may reduce or eliminate whole programs.