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Chapter 9

Chapter 9. Policy. Policy Process. The Policymaking Process, Pt1. Agenda Setting —policymakers prioritize the various problems facing the state Policy formation —possible solutions are developed and debated Policy adoption —formal government approval or administrative action

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Chapter 9

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  1. Chapter 9 Policy

  2. Policy Process

  3. The Policymaking Process, Pt1 • Agenda Setting—policymakers prioritize the various problems facing the state • Policy formation—possible solutions are developed and debated • Policy adoption—formal government approval or administrative action • Policy implementation—state agencies follow up on the actions of elected officials; bureaucratic agencies develop rules & regulations

  4. The Policymaking Process, Pt2 • Policy evaluation—government agencies,the legislature,and interest groups examine policy implementation to see if goals are met • Includes Sunset Review Process THREE TYPES OF POLICIES: • Redistributive policy • attempts to equalize society, move from 1 group to another, usually high-low movement • Distributive policy • Moves benefits to meet needs of citizens; costs widely dispersed, select benefits • Regulatory policy • Controls actions of corp/individ in private sector

  5. Fiscal Policy: Taxes, Spending, and Budgets Texas relies on a complicated mixture of taxes • General sales tax —began in 1961; now at a state rate of 6.25%, the fourth highest sales tax rate among all states [but no income tax] • Motor vehicle sales, rental, or lease taxes—6.25% • Motor fuels tax—gas and diesel tax assessed at 20 cents per gallon • The Texas Legislature has consistently refused to raise the motor fuels tax which provides revenue for highways. • This led to an increase in the number of toll roads to keep pace with the growing needs of the state

  6. Taxes, Spending, and Budgets • Severance Tax—a tax on natural resources when extracted from land • Franchise Tax—revised in a 2006 special session as to types of businesses included and formula used • Sin Taxes—taxes on activities like cigarettes and gambling to discourage such activities • Excise Taxes—taxes on spirits and mixed drinks, “hidden tax” as included in price of product • Ad valorem tax—a tax based on the value of property subject to an official estimate of property value called an appraisal [cap=10% annual increase]. • Cities, counties, and school districts rely on property taxes as a key source of revenue [No state prop tax as forbidden by TX Const].

  7. WINNERS & LOSERS • Progressive taxes—higher rates of taxation on people with higher incomes. • Regressive taxes—taxes that take a disproportionate amount of income from lower incomes; flat tax. • Texas takes a regressive approach to taxation. • The Texas Legislature has created a mix of new taxes, toll roads, and increased tuition & fees while experiencing statewide tax fatigue.

  8. Other Sources of Revenue • Federal Grants—account for about one-third of the state’s finances • Licensing and Lottery Funds • Lottery: ½ proceeds for prizes rest divided among state and retailers • The Permanent School Fund—a fund set aside to finance education in the state of Texas • Largest source of investment income

  9. Revenues – cont. • Subsidies – to fund moneymaking activities such as Super Bowl, Formula One racing • TX Emerging Technology Fund (TETF) to support start-up companies in cutting edge fields. Resulted in add’l jobs and TX leader in “high-tech” firms • Tax Expenditures • Reduction in tax liabilities or tax abatements as incentive to relocate here, etc • Tax-free holiday (shift shopping from 1day to another; more paperwork for business; free advertising for some large businesses) • Tax breaks for certain profession esp. agriculture

  10. Spending & Budgeting • Texas is a “pay as you go” state. The constitution requires a balanced budget and limits borrowing. • Borrowing limited to $200,000 unless approved by voters • Legislature declare “emergency”, requires 4/5 votes of BOTH Tx House and Senate

  11. Comptroller’s Role • Tx Constitution requires that the Comptroller of Public Accounts confirm how much money will be in the state’s accounts over the next two years (budget biennium). • Comptroller’s estimate becomes the state’s spending ceiling, confirmed at the beginning of each legislative session.

  12. Spending & Budgeting • “The constitution also provides that a bill cannot be considered passed by the legislature unless the comptroller has authorized that the amount to be spent by the bill is available.”(p. 269) • Rainy Day Fund or Economic Stabilization Fund [1988 constl amendment] • Formula from excess oil and gas production taxes, ½ of any unused General Revenue Funds, plus whatever legislature adds • Spending: comptroller declares budget deficit then necessary 3/5 vote of both houses • Also, Legislature can use for any purpose with 2/3 vote of members present in each house

  13. Legislative Budget Board (LBB) The chief architect of the Texas budget with tremendous political clout. LBB staff provides analysis for the legislative committees involved in budgeting. Co-chairs = Speaker and Lt. Gov’r

  14. BudgetProcess TX Fiscal Year = Sept 1 to Aug 31 US Fiscal Year = Oct 1 to Sept 30 Note: LBB or Governor may transfer money from one agency to another between sessions

  15. Education Policy • Education in grades K–12 • The Gilmer-Aiken Act of 1949 • guaranteed 12 years of education and a minimum of 175 days of instruction annually (began modern day public school system) • Education Reform Act of 1984 • TECAT examination for teachers • Edgewood ISD v. Kirby (1989) • the emergence of the “Robin Hood” plan in 1993

  16. Educ Stats By 2011 • 8,526 public schools • 1,235 school districts and charter schools • 4.9 million students • 33,876 teachers w. 328,270 administrators and staff ??

  17. State Board of Educ (SBOE) • 15 elected members, unpaid position but expenses reimbursed • Manage Permanent School Fund of which only interest can be spent, not principal • Set statewide edu policy, construct curriculum guideline (TEKS), textbook adoption • Appoint commissioner of educ who oversees Texas Education Agency (TEA)

  18. Education Policy Methods of Accountability: • Texas Assessment of Academic Skills (TAAS) 1990 • Texas Assessment of Knowledge and Skills (TAKS) 2003 • “No Child Left Behind” Act (NCLB) • State of Texas Assessment of Academic Readiness (STAAR) w. EOCs 2011

  19. HIGHER EDUCATION • Permanent University Fund (PUF) • Created by the Constitution of 1876: provides public endowment from state-owned lands to support the University of Texas and Texas A&M University systems. • PUF Funds may be used only for construction projects or certain “academic excellence” programs. (p. 252)

  20. HIGHER EDUCATION • Higher Education Coordinating Board • consists of thirteen citizens appointed by the governor to serve six-year terms • the board selects a full-time commissioner • Hopwood v. Texas (1989) • race-based university admissions • The “top 10 percent rule” (1997) • Tuition deregulation (2003)

  21. Health and Human Services • “Texas has three of the nation’s five counties of 250,000 or more people with the highest rates of poverty.” • Texas expenditures: $25 billion on 200 programs • Temporary Assistance to Needy Families (TANF) [replaced AFDC] • Texas’s version of food stamps is called the “Lone Star Card” Program

  22. Health and Human Services • State Children’s Health Insurance Program (SCHIP) • State-federal health care program for children • The Texas Health and Human Services Commission • Responsible for overseeing health and human service policies around the state • $15 billion budget and over 8500 employees

  23. Environmental Policy • Administered by the Texas Commission on Environmental Quality (TCEQ) • Formerly the Texas Natural Resource Conservation Commission (TNRCC) • Operating budget that is funded primarily from fees • Rulemaking and enforcement of environmental environmental standards

  24. Texas versus California • California has aggressively pursued environmental standards that exceed federal regulations. • California has several agencies involved in overseeing automobile emissions. • Texas maintains little state legislation beyond the minimum federal standards. • Texas does impose stricter emissions standards in its metropolitan areas. • Should environmental standards be left to the federal government?

  25. Immigration • Despite being an issue under federal agency jurisdictions, the impact of illegal immigration is felt in Texas • Costs and benefits of immigration: • 1. Immigrants pay more in sales taxes and fees than they cost the state • 2. Local governments pay more in providing services, indigent health care, and additional law enforcement than they receive in taxes

  26. Immigration • The Comptroller estimates that the absence of illegal immigrants would cost the state’s economy an estimated $17.7 billion • Texas cities and school districts bear a disproportionate burden • Pyler v. Doe (1982) • Republicans courting Hispanic voters in Texas fear the loss of electoral support while taking a tougher stance on illegal immigration

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