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TEXAS GOVERNMENT 2306

TEXAS GOVERNMENT 2306. UNIT 10 SPENDING AND SERVICES. The Psychology of Spending and Services. Texans’ cynical view of government power increasingly conflicts with growing demands for public services. TEXAS SPENDING & SERVICES—Principles. o Traditionalistic Political Culture

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TEXAS GOVERNMENT 2306

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  1. TEXAS GOVERNMENT 2306 UNIT 10 SPENDING ANDSERVICES

  2. The Psychology of Spending and Services • Texans’ cynical view of government power increasingly conflicts with growing demands for public services

  3. TEXAS SPENDING & SERVICES—Principles oTraditionalistic Political Culture • §Anti-government philosophy • §Conservative philosophy • oIndividualistic Political Culture • §Self-reliance • §Pull self up by bootstraps approach • §Individualism • §Free enterprise • oConservative Political Philosophy • §Fiscal restraint—low taxes, spending, & borrowing • §“Best government is government that governs least” • § Free enterprise, few social programs & services, few governmental regulations

  4. Texas State Expenditures1989-2005

  5. Texas BudgetDiscretionary vs. Earmarked (Dedicated or Restricted) Funds2001-2002

  6. Megastates: Per Capita State Expenditures

  7. TEXAS SPENDING COMPARATIVE RANKING • oRanks 15th among 15 most populous states in per capita govt. spending • oRanks 50th in per capita spending on all services • oTexas per capita spending is 71% of national average

  8. Texas Budget & Federal Funds2004-2005

  9. STATE APPROPRIATIONS2004-2005

  10. TEXAS STATE BUDGETFour Major Expenditures 42% • ·Education-43% • ·Health/Human Services-31% • ·Transportation-12% • ·State Prisons-7% 34% 9% 7%

  11. TOP THREE AREAS OF SPENDING-TEXAS RANKING • ·Education: • o40th of 50 • o83% of nat’l. ave. • ·Health/Human Services: • o41st of 50 • o13th of 15 of 15 most populous states • ·Transportation: • o47th of 50 • o 63% of national average

  12. Education in Texas • Public spending for education in Texas was not guaranteed until the 1876 constitution • Compulsory attendance was mandated in 1915, and free textbooks provided in 1918 • The Texas Education Agency (TEA) was established in 1949 • House Bill 72 was passed in 1984 creating: • State standards for student performance; • State standards for teacher competence

  13. Public School Governance State Board of Education Texas Education Agency (TEA) Locally Elected School Boards

  14. State and Local Administration • The State Board of Education • sets general rules and guidelines for TEA, • approves organizational plans, • recommends budget, and • implements funding formulas • Approves textbooks schools use • Texas 1,037 school districts are the basic structure for local control: • 7-9 member elected school boards; • Professional school superintendents

  15. The Politics of Public Education • Curriculum is determined by TEA, addressing many issues specific to the course taught • Textbooks are selected by the State Board of Education (SBE) with substantial battles between conservatives and liberals • Faculties are hired although standards are established by a 15-member state board.

  16. EDUCATION • ·42% of state budget • ·40th of 50 on per capita expenditures • ·Texas spends (per capita) 83% of national average • ·Of 15 most populous states-Texas ranks 11th—up from 15th (1993) • ·Reasons Why: • oIndividualistic/Traditionalistic Culture • o State economy • o Conservatism

  17. QUALITY OF EDUCATION:SAT SCORES • ECISDTEXASUS • Max. Score: • 800 • VERBAL 482 493 508 • MATH 486 502 520

  18. Ave. Teacher Salary Exp. Per Pupil State Aid Per Student SAT Scores Percent over 25 w. hs diploma HS Graduation Rate 32nd 40th 46th 47th 50th 35th Texas Educational Rankings

  19. Ethnicity of Texas Public School Students

  20. Public School Finance (Pre-2007) • Expenditures for public school operations rank Texas 40th of the 50 states • State funding (30-35%) comes from: • The Permanent School Fund; • The Available School Fund; • The Foundation School Program (largest portion) • Local funding(60%) comes from ad valorem property taxes (major source of revenue) and general-obligation bonds

  21. Funding Disparity in Texas-1 • ·300,000 students in poorest schools had <3% of state’s wealth to support their education • ·300,000 students in wealthiest schools had 25%+ of state’s wealth to support their education

  22. Funding Disparity in Texas-2 • ·North Forrest district—Harris County (90% black) had $67,630 of property value per student • Houston ISD had $348,180 of property value/student

  23. Funding Disparity in Texas-3 • ·Edgewood District (95% Hispanic) has $38,854 of property value per student • ·Alamo Heights (same county) had $570,109 of property value per student

  24. Funding Disparity in Texas-4 • ·Wilmer-Hutchins (82% black) in Dallas County had $97,681 of property value per student • Carrollton-Farmers Branch had $512,259 of property value per student

  25. Funding Disparity in Texas-5 • ·Poorest school district in Texas--$20,000 or property wealth per student • · Wealthiest school district has $14 million+/per student

  26. School Finance Reform • School financing has largely been resolved by: • Edgewood v. Kirby (Texas Supreme Court, 1989); • Until 2007, the Texas legislature has decreased public school funding forcing schools to look for new revenue • In 2007 legislative session Texas Legislature increased state funding for public schools & repealed “Robin Hood” –state share increased, local share decreased

  27. Texas Higher Education Enrollment-Fall 2003

  28. HIGHER EDUCATIONGovernance Texas Higher Education Coordinating Board (THECB) Boards of Trustees College Administration

  29. Texas Higher Education Rankings • ·College faculty salaries—10% below national average • ·Ranks 27th of 50 in average annual costs at public colleges & university • ·Ranks 29th of 50 in per capita state & local higher ed. Expenditures • ·Ranks 28th of 50 in percentage of the population graduated from college (23.9%)

  30. Cost of Higher Education

  31. Texas Health & Human Service Agencies

  32. Health and Human Services • The 2nd largest category of state spending although 60% of funding originates with the federal government • Social services include: • Temporary Assistance to Needy Families; • Health insurance; • Unemployment insurance

  33. Health & Human Services • ·34% of state budget • ·29th of 50 on per capita health care expend. • ·41st of 50 on per capita welfare expend. • ·Of 15 most populous states: Texas = 13th • ·Is an increasing share of state budget • ·Funded primarily from federal money

  34. Health Services • ·Texans most likely in America to have no health insurance—ranks 50th • ·A low priority in Texas

  35. Health Insurance Coverage by Race

  36. Health Services • ·Medicaid • oHealth care to poor • oMost expensive—1.7 million covered • o94% of recipients--aged, disabled, kids • ·W.I.C.—(Women, Infants, Children) • oProvides nutrition & education to poor women & their babies • ·MENTAL HEALTH PROGRAMS (MHMR Dept.) • ·State mental hospitals • ·Most are outpatients

  37. UNEMPLOYMENT PROGRAMS(Tx. Workforce Commission) • ·Unemployment Insurance • ·Texas law very restrictive • ·Ineligible if: • oFired for cause • oVoluntarily quit • oPart of labor dispute • · Max. benefit: $294/week for maximum of 26 weeks

  38. Welfare Services • ·Texas Constitution: prohibits spending more than 1% of state budget on welfare • ·A low priority in Texas

  39. Net Family Income in Texas

  40. Percentage of Persons in Poverty in Texas

  41. Number of Welfare Recipients in Texas

  42. Megastates: Per Capita Welfare Expenditures—2000-2001

  43. Welfare Programs • ·T.A.N.F. (Temporary Assistance to Needy Families) • replaced AFDC (Aid to Families with Dependent Children) • oCurrent Benefits: • ·$65/month per child (way below nat’l. ave.) • ·Adults: • ·Can receive benefits for 2 consecutive years • ·No more than 5 year max. lifetime benefits

  44. The Politics of Welfare • The broadest view of welfare is that it is an unearned, government-provided benefit • Social Insurance programs include old age, survivors, and disability insurance, and unemployment insurance which require more than a means test • Texas welfare rolls furnish the bare essentials. • The main problem facing welfare today is that is doesn’t cure, it alleviates.

  45. Welfare Myths • Any poor person may be eligible for state public assistance benefits • Welfare benefits allow some to buy things they don’t need • Welfare mothers have more children to increase their monthly TANF checks

  46. Cash Value of Monthly Welfare Benefits for Typical TANF Family 2004

  47. Of 3 million Texans in poverty • §Only 850,000 receive TANF (28%) • §No welfare for able-bodied adults in Texas • §Most welfare $ to poor women, their children, the elderly, & handicapped • §With welfare & all other benefits (food stamps, etc.) average family benefits received in Texas = 25% below poverty line

  48. Welfare Realities • Cheating and overpayment cost taxpayers money • The welfare system alleviates rather than cures poverty • The vast majority of recipients are children • The culture of poverty is self-perpetuating

  49. TRANSPORTATION • ·9% of state budget • ·Texas: 47th of 50 in per capita expend • ·63% of national average • ·Historically: roads = county function • ·Today: highways = joint federal/state effort

  50. Texas Department of Transportation • oAdministers the money • o46% of highway funds = federal money • oState Money—from gas tax (15 of 20 cents per gallon) • OThese funds earmarked for highways O Little or no money or consideration for public transport

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