Suppose that in a recent study, it was found that the state prisons in Texas are underfunded. The Congress passes a federal court mandate to restrict excess flow of state expenses and channel the surplus to the dedicated prison fund.
The government is directed to follow the balanced budget provision to avoid any unwanted fund wastage. Which of the following statements is true of this scenario?
a. The prison funds can be used for public maintenance services.
b. The court mandate is final, and the state government must abide by the decision.
c. The balanced budget gives free rein to the government's expenditures.
d. The government can be flexible in its budgeting decisions due to the provision.
Question 2
Which of the following are best described as regulations set by Congress that state and local government must meet?
a. federal grants
b. balanced budget provisions
c. federal mandates
d. dedicated fund provisions
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