Deck 29: Staffing and Financing State and Local Governments

Question 1

In a 1973 decision, the Supreme Court ruled that

A)communities must finance school districts from property taxes.
B)there is no requirement that the amount spent per pupil in each district be the same.
C)reliance on property taxes to finance schools constitutes a denial of equal protection of the law.
D)those who use public schools should pay a higher tax rate than those who do not.
E)it is not unconstitutional to have a school tax.

Answer 1

B

Question 2

Merit systems often are overly centralized and regulated; which can lead to difficulties when trying to retain and recruit valuable employees.

Answer 2

True

Question 3

States and _______ are often responsible for delivering on the promises of the federal government.

A)bureaucrats
B)city managers
C)localities
D)legislation
E)None of the above

Answer 3

C

Question 4

The Pendleton Act

A)sought to eliminate political patronage.
B)was the first national income tax.
C)mandated clean air and water at the state level.
D)allowed government managers to hire and fire at will.
E)prevented government managers from hiring and firing at will.

Question 5

Rather than relying on their own employees, many state and local governments have "contracted out" public services to private sector organizations, including for-profit corporations as well as nonprofit agencies, in a practice called

A)freelancing.
B)freejacking.
C)the spoils system.
D)outsourcing.
E)repurposing.

Question 6

The argument has been made that __________ tend(s) to fall on those that are least able to pay.

A)property tax
B)sales tax
C)value-added tax
D)individual income tax
E)user fees

Question 7

State and local government often rely on their own employees to conduct their will and they rarely contract out to the private sector.

Question 8

Wages for public employees constitute more than ________ of the cost of state and local government.

A)one-fourth
B)one-third
C)one-half
D)two-thirds
E)four-fifths

Question 9

The most common demographic for a teacher in the United States is

A)Caucasian males.
B)Caucasian females.
C)African American females.
D)Hispanic females.
E)African American males.

Question 10

Merit systems are generally administered by the office of state personnel and do all of the following EXCEPT

A)preparesand administer examinations.
B)provide lists of job openings.
C)fill only lower level positions.
D)establish job classifications.
E)determine salary schedule.

Question 11

Suppose a state wants to cut costs and decides to hire a private organization to handle all of its public works.What would this be an example of?

A)Privatization.
B)Outsourcing.
C)Service contracting.
D)Decentralizing services.
E)All of the above

Question 12

A government seeks to identify the value of land and other properties through a process termed

A)ad valorem.
B)appraisal.
C)assessment.
D)levying.
E)appropriation.

Question 13

A hundred years ago, wealth primarily consisted of ________, land and buildings, that was relatively easy for assessors to value.Their estimate was a good indicator of the property owner's ability to pay taxes.

A)intangible wealth
B)tangible wealth
C)real estate
D)real property
E)ad valorem

Question 14

Building schools, constructing roads, and clearing slums are examples of

A)infrastructure.
B)urban development.
C)capital gains.
D)capital expenditures.
E)reinvestment.

Question 15

Merit systems are generally administered by the office of state personnel.

Question 16

State and local governments spend 21% of their budget on which of the following?

A)Education
B)Health
C)Public Safety
D)Cash assistance
E)Environment/housing

Question 17

Which of the following is an example of value-added taxation?

A)An employee notices that 8% of his latest paycheck has been taxed by the state government.
B)A homeowner mails a check to the local government equal to 1% of her home's appraised value.
C)The accountant for a coal mining company determines that 20% of the value of the coal mined in a certain area will be taxed.
D)A gravel-crushing company is taxed when it sells gravel to a cement company; the cement company is taxed when it sells the concrete to a contractor; and the contractor is taxed when he sells a finished concrete driveway to a homeowner.
E)None of the above

Question 18

Fiscal capacities can be defined as

A)limits placed on state spending by the U.S.Congress.
B)the potential borrowing power of a state or municipality.
C)the revenues a state brings in within a fiscal year.
D)the economic resources a state may tax.
E)None of the above

Question 19

________ is a consumer tax on specific kind of merchandise.

A)Exchange
B)Excise
C)Value-added
D)Graduated
E)Flat rate

Question 20

Tax brackets are indexed when they

A)bring in a strong stream of revenue without being so large that the population avoids what is being taxed.
B)balance taxation across a population.
C)demonstrate levels of income.
D)automatically adjust income tax rates to rise with inflation so that, in effect, they remain constant.
E)slow the economy.

Question 21

Property taxes are based on land, houses, and the contents of them, respectively.

Question 22

According to the text, state employees account for what ratio of the nation's workforce?

A)Five out of one hundred
B)Three out of ten
C)One out of seven
D)One out of ten
E)Five out of twenty

Question 23

Subsequent to 1939, many state and local governments enacted "_________" that enforced merit principles and restricted the political activities of their employees.

A)little Pendleton Acts
B)little Hatch Acts
C)little Spoils Acts
D)State Spoils Acts
E)State Merit Acts

Question 24

Which of the following is NOT one of the listed criteria used by Wisconsin's government in deciding what private agencies are used for welfare reform?

A)Placing the handicapped into jobs without regard for their disability
B)Providing job skills training
C)Their record in placing former recipients into jobs with good wages
D)Their record in placing former recipients into jobs
E)Their record in placing former recipients into jobs that are kept for at least 180 days

Question 25

Lotteries helped finance the Revolutionary War.

Question 26

Which one of the following was legislation aimed at halting political patronage in America?

A)Pendleton Act
B)Pullman Act
C)Hitch Act
D)Merit Act
E)Spoils Act

Question 27

By far the greatest number of state and local government employees are hired through

A)election.
B)political appointment.
C)some kind of merit system.
D)collegiate placement services.
E)the spoils system.

Question 28

By 2016, more than 20.7 million American adults will work in the nation's roughly 89,000 state and local governments.During the same period, the federal government is expected to ________.

A)grow by 10 percent
B)shrink its workforce by 20 percent
C)grow by 20 percent
D)stay approximately the same size
E)turn over several key responsibilities to the states

Question 29

Excluding _________, who are overwhelmingly white and female, the U.S.Census Bureau reports that the state and local workforce is also becoming an employer of choice for minorities.

A)schoolteachers
B)clerical workers
C)police officers
D)building inspectors
E)utilities workers

Question 30

Some cities have started using a payroll tax to bolster revenue.

Question 31

In the state of Kentucky it is often the rule of thumb to hire road construction crews from the private sector to do road work.What is this an example of?

A)Privatization.
B)Outsourcing.
C)Service contracting.
D)Decentralizing services.
E)All of the above

Question 32

State and local governments spend most of their funds on education.

Question 33

Throughout much of the nineteenth century, governments at all levels were dominated by political patronage, a political phenomenon defined as a(n) ________ in which employment was a reward for partisan loyalty and active political support.

A)golden parachute
B)spoils system
C)old-boy network
D)leveling system
E)compensation system

Question 34

Internet sales are hard or even impossible to tax by state governments.

Question 35

State personnel offices are concerned with all of the following EXCEPT

A)administering affirmative action programs.
B)filling top-level executive positions.
C)dismissing civil servants for political reasons.
D)bargaining with labor unions.
E)training the already employed.

Question 36

Which of the following is NOT an advantage, according to the text, of contracting public services out to private organizations?

A)Flexibility
B)Expertise
C)Competitive bidding
D)Release from oversight
E)Increased overall quality

Question 37

All of the following are text-listed criticisms of merit-based systems within the states EXCEPT

A)agency managers were prevented from adapting their workforces to changing needs.
B)vacancies were filled too quickly, without time for managerial consideration.
C)state job descriptions were minutely detailed and difficult to change once posted.
D)state personnel systems were overly centralized and regulated.
E)state personnel systems used job descriptions and testing that failed to sync up with the demands of particular agencies.

Question 38

The most drastic personnel reforms have been pushed by liberal governors in states in which public employee unions are strong.

Question 39

Critics complained that merit systems were overly

A)centralized and regulated.
B)centralized.
C)regulated.
D)decentralized and deregulated.
E)complex and restrictive.

Question 40

Bonds are financial instruments issued by the state and local government and bought by investors.

Question 41

Stocks, bonds, and money in the bank are all examples of

A)intangible wealth.
B)tangible wealth.
C)real estate.
D)real property.
E)ad valorem.

Question 42

Several state courts have ruled that wide differences between school districts in per-pupil expenditures are inconsistent with the equal protection clause of the ________ Amendment.

A)Sixteenth
B)Ninth
C)Fourteenth
D)Seventh
E)Twenty-First

Question 43

The phenomenal revolt of the taxpayers explained in the text occurred in

A)Ohio.
B)Maryland.
C)New York.
D)California.
E)New Mexico.

Question 44

Which of the following is NOT one of the listed interpretations of the U.S.Constitution in terms of regulating the states' ability to create revenue?

A)No using taxing powers to deprive people of equal protection of the law
B)No taxation of any company designated by a sitting governor
C)No discriminating against interstate commerce, unduly burdening it, or taxing it directly
D)No using taxing powers to interfere with federal operations
E)No taxing exports or imports or levying tonnage duties without the consent of Congress

Question 45

In 2007, _______ alone made up 43 percent of all federal grants to state and local governments.

A)Social Security
B)Medicare
C)Medicaid
D)state-level pensions
E)welfare

Question 46

By _________, personnel systems public managers may be able to get the people they really need.

A)centralizing
B)regulating
C)deregulating
D)streamlining
E)decentralizing

Question 47

________ usually ask(s) state courts to enforce provisions in state constitutions requiring state governments to guarantee a "sound basic education," an "ample" education, or some other minimal or adequate level of education to all children in the state.

A)Ample legal motions
B)Enforcement lawsuits
C)Ancillary lawsuits
D)The state school superintendent
E)Adequacy lawsuits

Question 48

Contracting with private firms (outsourcing) as the major provider of some public services is a practice that is currently

A)dormant.
B)decreasing.
C)dominant.
D)increasing.
E)less active than in the past.

Question 49

The valuation a government places on property for the purposes of taxation is defined as

A)ad valorem.
B)appraisal.
C)assessment.
D)levying.
E)appropriation.

Question 50

According to the text, criteria for a "good tax" includes all of the following EXCEPT

A)it allows some people to avoid paying their taxes much more easily than others.
B)it is easy to administer fairly.
C)it does not burden individuals and corporations with a lot of extra paperwork and activities.
D)it does not demand enormous and intrusive governmental agencies to ensure compliance.
E)it distributes financial burdens fairly.

Question 51

The watershed event in the politics of tax cutting was the 1978 passage of California's Proposition 13, which limits increases in property taxes to a maximum of

A)2% each year.
B)8% each year.
C)10% each year.
D)1% each year.
E)5% each year.

Question 52

Wealth in terms of land and buildings has traditionally been defined as

A)intangible wealth.
B)tangible wealth.
C)real estate.
D)real property.
E)ad valorem.

Question 53

_______________ limited the activities of federal, state, and local employees whose salaries were supported by federal funds.

A)Civil Service Reform Act of 1978
B)Hatch Act of 1939
C)Hatch Act of 1942
D)Civil Service Reform Act of 1883
E)None of the above

Question 54

In 1890, economist Edwin Seligman called ________ "the worst tax known in the civilized world."

A)the sales tax
B)the property tax
C)the income tax
D)the luxury tax
E)the consumption tax

Question 55

The example in the text of tax relief to lower-income families and the elderly based on a ratio of tax burden to personal income is called

A)the circuit-breaker easement.
B)the relief ratio exemption.
C)the positive income tax.
D)the circuit-breaker exemption.
E)the negative property tax.

Question 56

In Wisconsin, the state's legislature and governor enacted a 1995 welfare reform program that divided the state's largest city, Milwaukee, into several districts and required the state to contract with private agencies in each district to implement the new program, which was named

A)A Bigger Slice of Cheese.
B)Wisconsin Works (or W2).
C)Milwaukee's Best Works.
D)On, Wisconsin!
E)Working Wisconsin.

Question 57

The ideal of a fluid tax rate that matches the rise and fall of the economy is defined as

A)concurrent tax brackets.
B)balanced taxing.
C)market taxing.
D)concurrent taxing.
E)indexed tax brackets.

Question 58

Which of the terms below define a tax that is applied to a product at each stage of production and distribution?

A)Ad valorem tax
B)Value-added tax
C)Sales tax
D)Tariff
E)Income tax

Question 59

Many state and local governments have privatized major parts of their

A)public works system.
B)technology needs.
C)welfare services.
D)health care services.
E)All of the above.

Question 60

Born during the Great Depression, the _______ is the most important source of revenue for states, which collected more than $352 billion in 2007.

A)consumption tax
B)excise tax
C)general property tax
D)sales tax
E)school tax

Question 61

For many years only __________ permitted legalized gambling in the U.S.

A)California
B)Nevada
C)Florida
D)Louisiana
E)Mississippi

Question 62

Which of the following is NOT a special-purpose government or a special district?

A)Bridge authorities
B)Airport authorities
C)Water districts
D)Police departments
E)Public transit authorities

Question 63

________ are financial instruments issued by state and local governments and bought by investors.In exchange for a cash payment at the time the bond is issued, the issuing government promises the investor that it will repay the loan with interest over time.

A)Broker certificates
B)Lines of credit
C)Stocks
D)Certificates of deposit
E)Bonds

Question 64

Which of the following states has no personal income tax?

A)Arizona
B)Nevada
C)South Dakota
D)Texas
E)All of the above

Question 65

Which of the following is a capital expenditure?

A)Health care
B)Garbage collection
C)Law enforcement
D)Constructing roads
E)Building inspections

Question 66

In 2006, state and local governments received revenues of _______ from taxes on the operations of casinos and pari-mutuel betting.

A)$2 billion
B)$3 billion
C)$5.7 billion
D)$4.6 billion
E)$3.4 billion

Question 67

Furniture, jewels, washing machines, rugs, and paintings are all examples of

A)intangible wealth.
B)tangible wealth.
C)real estate.
D)real property.
E)ad valorem.

Question 68

Which of the following statements about California's Proposition 13 is correct?

A)It ultimately affected tax rates in 45 states.
B)It was an indirect mandate to impose spending limits on government.
C)It had more impact on income taxes than on property taxes.
D)It increased the amount of revenue available for schools.
E)All of the above

Question 69

Most of the growth in federal grants as sources of revenue for state governments has come from _________.

A)lottery revenue
B)Medicaid
C)Medicare
D)transportation
E)law enforcement

Question 70

The Continental Congress ran a lottery to help finance the

A)Spanish-American War.
B)French-Indian War.
C)War of 1812.
D)World War I.
E)Revolutionary War.

Question 71

This tax only counts for a little more that 1 percent of all taxes nationwide.

A)severance
B)excise
C)value-added
D)graduated
E)flat rate

Question 72

Tolls and fees collected by a special-purpose government or a special district are defined as

A)revenue bonds.
B)lines of credit.
C)stocks.
D)slush funds.
E)discretionary funds.

Question 73

Taxes on gasoline, alcohol, and cigarettes are classified as ______ taxes.

A)severance
B)ad valorem
C)excise
D)flat
E)sales

Question 74

Investors will rarely hesitate when given the opportunity to buy __________ from states.

A)Stocks
B)Bonds
C)Promissory notes
D)Block loans
E)Categorical grants

Question 75

The text mentions "other sources" of state and local revenue which include all of the following EXCEPT

A)building inspections.
B)parking meters.
C)operating courts.
D)excise taxes.
E)disposing of garbage.

Question 76

The most important source of revenue for state government is

A)property tax.
B)sales tax.
C)value-added tax.
D)individual income tax.
E)user fees.

Question 77

The general property tax is a stable, predictable source of funding, especially important characteristics for local governments, because many of their functions (such as police and fire protection, record keeping, and the provision of prisons, jails, schools, and libraries), are fairly constant from year to year.This stability can be critical during and after ________.

A)inflation.
B)recessions.
C)natural disasters.
D)changes in administrations.
E)economic booms.

Question 78

Revenue bonds are defined by the text as

A)instruments of banking that allow a state or local government to borrow funds with no money down.
B)lines of credit.
C)certificates sold to the general public to raise money for building projects or other expensive propositions.
D)tolls and fees collected by a special-purpose government or a special district.
E)discretionary funds available to the state from a private bank or lending institution.

Question 79

State and local officials are worried that the national government might impose a(n) ___ tax.

A)exchange
B)excise
C)value-added
D)graduated
E)flat rate

Question 80

Individual income taxes are mildly________, meaning the rate goes up with income.

A)concurrent
B)progressive
C)stipulative
D)adjusting
E)self-leveling