TEXAS GOVERNMENT 2306 UNIT 11 SPENDING AND SERVICES.

TEXAS GOVERNMENT 2306

UNIT 11

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 Anti-government philosophy Conservative philosophy

• o Individualistic Political Culture Self-reliance Pull self up by bootstraps approach Individualism Free enterprise

• o Conservative Political Philosophy Fiscal restraint—low taxes, spending, & borrowing “Best government is government that governs least” Free enterprise, few social programs & services, few

governmental regulations

Texas State Expenditures1989-2005

Texas BudgetDiscretionary vs. Earmarked

(Dedicated or Restricted) Funds2001-2002

Megastates: Per Capita State Expenditures

TEXAS SPENDING COMPARATIVE RANKING

• o Ranks 15th among 15 most populous states in per capita govt. spending

• o Ranks 50th in per capita spending on all

services • o Texas per capita spending is 71% of

national average

Texas Budget & Federal Funds2004-2005

STATE APPROPRIATIONS2004-2005

TEXAS STATE BUDGETFour Major Expenditures

Education-43%

Health/Human Services-31%

Transportation-12%

State Prisons-7%

42%

9%

34%

7%

TOP THREE AREAS OF SPENDING-TEXAS RANKING Education:

• o 40th of 50• o 83% of nat’l. ave.

Health/Human Services:

• o 41st of 50• o 13th of 15 of 15 most populous states

Transportation:

• o 47th of 50• o 63% of national average

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

Public School Governance

State Board of Education

Texas Education Agency (TEA)

Locally Elected School Boards

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

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.

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:

• o Individualistic/Traditionalistic Culture• o State economy• o Conservatism

QUALITY OF EDUCATION:SAT SCORES

• ECISD TEXAS US

• Max. Score:• 800

• VERBAL 482 493 508

• MATH 486 502 520

Texas Educational Rankings• 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

Ethnicity of Texas Public School Students

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

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


North Forrest district—Harris County (90% black) had $67,630 of property value per student

• Houston ISD had $348,180 of property value/student


Edgewood District (95% Hispanic) has $38,854 of property value per student•

Alamo Heights (same county) had $570,109 of property value per student


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


Poorest school district in Texas--$20,000 or property wealth per student

Wealthiest school district has

$14 million+/per student

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

Texas Higher Education Enrollment-Fall 2003

HIGHER EDUCATION Governance

Texas Higher Education Coordinating Board (THECB)

Boards of Trustees

College Administration

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%)

Cost of Higher Education

Texas Health & Human Service Agencies

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

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

Health Services

Texans most likely in America to have no health insurance—ranks 50th

A low priority in Texas

Health Insurance Coverage by Race

Health Services Medicaid

• o Health care to poor• o Most expensive—1.7 million covered• o 94% of recipients--aged, disabled, kids

W.I.C.—(Women, Infants, Children)• o Provides nutrition & education to poor women & their

babies

MENTAL HEALTH PROGRAMS (MHMR Dept.)

State mental hospitals Most are outpatients

UNEMPLOYMENT PROGRAMS (Tx. Workforce Commission)

Unemployment Insurance Texas law very restrictive Ineligible if:

•o Fired for cause•o Voluntarily quit•o Part of labor dispute

Max. benefit: $294/week for maximum of 26 weeks

Welfare Services

Texas Constitution: prohibits spending more than 1% of state budget on welfare

A low priority in Texas

Net Family Income in Texas

Percentage of Persons in Poverty in Texas

Number of Welfare Recipients in Texas

Megastates: Per Capita Welfare Expenditures—2000-2001

Welfare Programs

T.A.N.F. (Temporary Assistance to Needy Families)

• replaced AFDC (Aid to Families with Dependent Children)

• o Current 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

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.

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

Cash Value of Monthly Welfare Benefits for Typical TANF

Family 2004

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

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

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

Texas Department of Transportation

• o Administers the money

• o 46% of highway funds = federal money

• o State 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

Megastates: Per Capital Highway Expenditures

Texas Highway System--Use

The Politics of Transportation

• Per capita state highway funding is among the nation’s lowest

• Controversy over the Trans-Texas Corridor:An estimated cost of $200 billion;Some see it as a land grab

• Automotive transportation is part of the Texas culture and Texans are unreceptive to mass transit

PUBLIC SAFETY/CRIMINAL JUSTICE 7% of state budget

Ruiz v. Estelle (1982)• o Prison overcrowding violated 8th Amend.

State Options: Early Release Send fewer criminals to prison Massive expansion of prison system

Texas Choice

Massive expansion of prison system Funded by state bonds (state indebtedness) Texas amended the state constitution to allow this

Crime: Texas Rankings

• o 1st in prison population

• o 3rd in incarceration rate

• o 1st in number of executions

• o 6th total crime rate (per capita)

• o 12th highest violent crime rate (per capita

o 14th highest rape rate (per capita)

State Expenditures: 1981-1991-2001

Megastates: Per Capita Expenditures—By Dollars

Per Capita Spending in Texas:A Comparison

TEXAS GOVERNMENT 2306 UNIT 11 SPENDING AND SERVICES.

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Transcript of TEXAS GOVERNMENT 2306 UNIT 11 SPENDING AND SERVICES.