1. Government Revenue and Spending

2. Sources of Revenue
Sales Tax: the largest source of state-controlled revenue ( over 1/4 of all state funds)
Special taxes imposed on fuel, tobacco products, and motor vehicles—different than sales tax
Revenue from fees, such as licenses and permits
Federal Government/Tax payers (1/3 of funding)
Bonds: loans bought by people in which the government promises to repay with interest. Bonds are used to finance large projects

3. The Budget Process State has a biennial budget system
Legislative Budget Board, an agency of the Legislative Branch, prepares a budget, a two-year plan for the state’s income and spending.
Texas Constitution requires a balanced budget, meaning government spending cannot exceed government revenue
All branches must submit their budget requests and both houses of the Legislature must approve the bill
Comptroller of Public Accounts reviews it, and the Governor signs it (can still line-item veto)