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TEXAS GOVERNMENT 2306 UNIT 11 SPENDING AND SERVICES.

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Presentation on theme: "TEXAS GOVERNMENT 2306 UNIT 11 SPENDING AND SERVICES."— Presentation transcript:

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2 TEXAS GOVERNMENT 2306 UNIT 11 SPENDING AND SERVICES

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

4 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

5 Texas State Expenditures

6 Texas Budget Discretionary vs. Earmarked (Dedicated or Restricted) Funds

7 Megastates: Per Capita State Expenditures

8 TEXAS SPENDING COMPARATIVE RANKING o Ranks 15 th among 15 most populous states in per capita govt. spending o Ranks 50 th in per capita spending on all services o Texas per capita spending is 71% of national average

9 Texas Budget & Federal Funds

10 STATE APPROPRIATIONS

11 TEXAS STATE BUDGET Four Major Expenditures   Education-43%   Health/Human Services-31%   Transportation-12%   State Prisons-7% 42% 9% 34% 7%

12 TOP THREE AREAS OF SPENDING-TEXAS RANKING   Education: o 40 th of 50 o 83% of nat’l. ave.   Health/Human Services: o 41 st of 50 o 13 th of 15 of 15 most populous states   Transportation: o 47 th of 50 o 63% of national average

13 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

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

15 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

16 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.

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

18 QUALITY OF EDUCATION: SAT SCORES ECISD TEXAS US Max. Score: 800 VERBAL MATH

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

20 Ethnicity of Texas Public School Students

21 Public School Finance (Pre-2007) Expenditures for public school operations rank Texas 40 th 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

22 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

23 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

24 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

25 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

26 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

27 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

28 Texas Higher Education Enrollment-Fall 2003

29 HIGHER EDUCATION Governance Texas Higher Education Coordinating Board (THECB) Boards of Trustees College Administration

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

31 Cost of Higher Education

32 Texas Health & Human Service Agencies

33 Health and Human Services The 2 nd 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

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

35 Health Services   Texans most likely in America to have no health insurance—ranks 50th   A low priority in Texas

36 Health Insurance Coverage by Race

37 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

38 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

39 Welfare Services   Texas Constitution: prohibits spending more than 1% of state budget on welfare   A low priority in Texas

40 Net Family Income in Texas

41 Percentage of Persons in Poverty in Texas

42 Number of Welfare Recipients in Texas

43 Megastates: Per Capita Welfare Expenditures—

44 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

45 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.

46 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

47 Cash Value of Monthly Welfare Benefits for Typical TANF Family 2004

48 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

49 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

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

51 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) O  These funds earmarked for highways O Little or no money or consideration for public transport

52 Megastates: Per Capital Highway Expenditures

53 Texas Highway System--Use

54 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

55 PUBLIC SAFETY/CRIMINAL JUSTICE   7% of state budget   Ruiz v. Estelle (1982) o Prison overcrowding violated 8 th 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

56 Crime: Texas Rankings o 1 st in prison population o 3rd in incarceration rate o 1 st in number of executions o 6 th total crime rate (per capita) o 12 th highest violent crime rate (per capita o 14 th highest rape rate (per capita)

57 State Expenditures:

58 Megastates: Per Capita Expenditures—By Dollars

59 Per Capita Spending in Texas: A Comparison


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