Texas Government & Policy Test Prep 2026: Quizzes, Rationales, and Board Review

One of the problems with Texas government is that there are no regional councils that promote coordinated planning across local governments. A. True B. False C. Sometimes D. Only in large cities Rationale: Texas does have regional councils that coordinate planning, so the correct answer is False. What is the composition of the county commissioner's court? A. County judge only B. A county judge who is elected countywide and presides over the meetings, and four county commissioners who are each elected to represent about one-quarter of the population of the county C. Five county commissioners only D. County judge and two commissioners Rationale: The commissioner's court consists of one county judge and four commissioners; other options do not match the official structure. In Texas, ________ create(s) special purpose districts. A. The governor B. The state legislature C. Texas voters in the areas that will be covered D. County commissioners Rationale: Special purpose districts are generally created through local voter approval; the legislature or governor does not directly create them. What is the level of popularity of the commissioner system of city government in Texas today? A. Widely used in most cities B. No city in Texas today has a pure commissioner system, but a handful claim a variation of the system C. Used in small towns only D. Popular in urban counties only Rationale: The pure commissioner system is virtually extinct; some cities may claim adaptations. All colleges and universities in Texas have access to monies through the Higher Education Fund. A. True B. False C. Only private universities D. Only research institutions Rationale: Not all institutions are eligible; only specific public universities have access. While many of the sources of revenue in Texas are dedicated to specific purposes, designated as "nondedicated," or come from the federal government, there are some funds that are not included in the specific budget categories. Where do we classify these funds? A. General Revenue Fund B. Federal Funds C. Dedicated Funds D. Other funds Rationale: "Other funds" are used for monies not falling under standard categories. The state legislature can impose a personal income tax without requiring voter approval. A. True B. False C. Only during a fiscal emergency D. Only with governor approval Rationale: Texas requires voter approval to levy a personal income tax. Nondedicated funds A. Can only be used for education B. Can be used for any purpose C. Must be spent on infrastructure D. Are reserved for emergencies Rationale: Nondedicated funds are flexible and not tied to a specific purpose. While the Texas Constitution requires a balanced budget, the state is allowed to carry debt as long as: A. Debt is approved by voters B. Debt payments are under 10% of revenue C. Debt payments are not more than 5 percent of the state's revenue D. Debt is used only for infrastructure Rationale: Texas limits debt servicing to 5% of revenue to maintain budget stability. When we talk about a progressive tax, we are talking about a type of tax where: A. Everyone pays the same rate B. Individuals with a lower income pay less in taxes than those with higher income C. Only businesses pay D. Tax rates decrease as income rises Rationale: Progressive taxes are based on ability to pay; higher earners pay more. In 1978, the Texas Constitution was amended (Article 8, Section 22), so that if the economy of the state shrinks: A. The governor must approve spending B. Legislators may adjust funds voluntarily C. Appropriations have to shrink as well D. Debt increases automatically Rationale: Appropriations must shrink to maintain a balanced budget. When thinking about public financing, it is important to remember that: A. The legislature does not have direct control of most of the money in the state budget B. The governor controls all spending C. Local governments manage most funds D. Federal funds are unrestricted Rationale: Much of the budget is earmarked, limiting legislative control. Public education in Texas is funded through both the Permanent School Fund (PSF) and the Available School Fund (ASF). A. True B. False C. Only through ASF D. Only through PSF Rationale: Both funds contribute to public education financing. Federal money is an important part of the Texas budget, but monies received from the federal government: A. Have no restrictions B. Are unlimited C. Often come with strings attached D. Are used at the governor’s discretion Rationale: Federal funds are usually conditional and require matching or specific program use. According to Article 3, Section 49a of the Texas Constitution, state agencies are allowed to take on debt, but only for one project at a time. A. True B. False C. Only infrastructure projects D. Only with legislative approval Rationale: The one-project limitation is incorrect; the Constitution specifies different limits. Monies generated from the motor fuels tax are dedicated to: A. General revenue B. Construction, maintenance, and policing of public roads or public education C. Only highways D. Health and human services Rationale: Motor fuel taxes are legally earmarked for roads and some education. Which statement about the Texas budget is true? A. Covers one year B. Covers a two-year period C. Only covers education D. Only covers infrastructure Rationale: Texas operates on a biennial budget cycle. When money needs to be transferred between agencies and the legislature is not in session: A. The legislature must reconvene B. The governor can propose the transfer and the Legislative Budget Board can approve C. No transfers are allowed D. The comptroller decides Rationale: The governor and LBB handle interim transfers. When you pay motor vehicle registration fees, the money goes into: A. General Revenue Fund B. Federal Fund C. State Highway Fund D. Other Funds Rationale: Registration fees fund highway maintenance and construction. The state auditor's office is responsible for making sure that agencies: A. Collect taxes properly B. Spend federal funds C. Are in compliance with their budgets D. Hire competent staff Rationale: The state auditor monitors budget compliance for state agencies. The purpose of the Biennial Revenue Estimate is to provide: A. A detailed expense report B. A detailed forecast of total revenues the state expects over the next biennium C. Appropriations for education only D. Debt reports Rationale: BRE estimates revenue for budgeting decisions. The Texas Constitution (Article 3, Section 51a) limits spending in any two-year period for needy dependent children or their caretakers to: A. 5% of the budget B. 10% of the budget C. 1% of the budget D. 3% of the budget Rationale: Article 3, Section 51a restricts state spending for this purpose to 1% to control welfare expenditures. The Legislative Budget Board is chaired by: A. Governor B. Speaker of the House C. Lieutenant Governor D. Comptroller Rationale: The Lieutenant Governor serves as chair, guiding the budgetary process in Texas.