Author Question: Since the Texas Constitution generally prohibits the state from going into debt, how is the state ... (Read 108 times)

fnuegbu · **on:** Jul 8, 2018

Since the Texas Constitution generally prohibits the state from going into debt, how is the state able to borrow money through general obligation bonds?

A) Such bonds do not technically create indebtedness since the state uses taxes to repay them.
B) Such bonds are established through amending the Texas Constitution.
C) Such bonds are repaid within the biennial budget period.
D) Technically, such bonds are for borrowing goods and servicesnot money.
E) Such bonds are permissible because their amounts are negligible.

Question 2

Because the Texas legislature meets in regular session only once every other year,

A) legislators must pass a state budget during its regular session for the first year and during a special session for the next year.
B) legislators must pass a budget during its regular session for the first year and the governor must enact a budget for the next year.
C) legislators must pass a biennial, or two-year, budget for Texas government.
D) the Legislative Budget Board enacts the budget without input from the legislature.
E) Texas operates in an ad hoc fashion without using a budget.