1927 The Texas Almanac and State Industrial Guide Page: 214
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214 THE TEXAS ALMANAC.
STATE FINANCES.The State of Texas, in so far as its
principal governmental expenditures are
concerned, ,operates under a tentative
budget plan\ For the support of the
State judiciary, State departments and
State educational and eleemosynary insti-
tutions, the Board of Control drafts air
itemized budget for the guidance of the
Legislature which convenes biennially
(on odd years) on the second Tuesday in
January. After giving due consideration
to the recommendations of the Board of
Control, the Legislature appropriates the
State's money at its own discretion. The
Board of Control makes few recommen-
dations with reference to the fixing of in-
come. The principal source of revenue is
the ad valorem tax -constitutionally lim-
ited to 35c on $100 of property valuation,
and this is set (within constitutional lim-
it) in accordance with statutory regula-
tions, and is contingent largely upon ap-
propriations for the- succeeding year
charged against the general fund. (See
"Calculating the Tax Rate" under heading
"Texas Ad Valorem Tax Rates and Total
Valuations, 1846-1926.") Hence this rate
is largely a reflection of the expenditures
of Legislature. Some appropriations are
made by Legislature from the general
fund, and in some instances from other
funds, not coming within the tentative
budget of the Board of Control.
The General Revenue Fund.
This is the principal fund from which
appropriations are made for support of
the State Government. These appropria-
tions are made entirely by the Legislature,
and for a wide range of purposes-support
of State departments, Legislature and ju-
diciary, support of State institutions, erec-
tion of State buildings, supplementing the
available school fund, for the functioning
of various temporary investigating and
other committees, and a wide range of
other purposes, even to individuals, asso-
ciations of individuals and municipal and
other corporations in the fofm of certain
prescribed pensions, and in event of pub-
lic calamity.
Principal sources of revenue to the gen-
eral revenue fund are as follows:
i. An ad valorem tax limited to 35e on
the $100 of property valuation.
2. One-third of the State poll tax,
amounting to 50c per capita.
3. Three-fourths of the ordinary occu-
pation tax.
4. An inheritance tax, all of which goes
into this fund.
5. Three-fourths of a gross receipts tax
collected primarily from oil and sulphur.
6. Varying portions of franchise taxes
and miscellaneous fees collected by the
State departments.
Available School Funds
It is an outstanding characteristic of
the Texas State Government that the pub-
lic schools receive a relatively large pro-
portion of the money collected by the
State, amounting during recent years to
$14 per capita of school population annu-
ally in addition to large appropriations
for the higher educational institutions
and aid to rural and vocational schools.
Appropriations for higher educational in-
stitutions, and for rural and vocational
school aid are made from the general
fund. Apportionments to public schoolsare made from the available school fund.
Expenditures for free textbooks are made
also from the available school fund by
transfer to the textbook fund.
Principal sources of revenue to the
available school fund are as follows:
1. An ad valorem tax restricted to a
maximum of 35e on $100 property valua-
tion; this tax has been 35c since 1918.
2. Two-thirds of the State poll tax re-
ceipts, amounting to $1.00 per capita.
3. One-fourth of the ordinary occupa-
tion tax.
4. One-fourth of the gross receipts tax.
5. One-fourth of the State tax of lc a
gallon on gasoline.
6. Interest from permanent school fund.
In addition to the foregoing sources of
revenue, the available school fund is sup-
plemented annually by appropriations
from the general revenue fund by the
Legislature amounting to $2,000,000 or
$3,000,000. (See figures under chapter on
"Education.")
Highway Fund.
The State highway fund is maintained
for the purpose of construction and
maintenance of highways on the desig-
nated highway system of Texas, and for
maintenance of the State Highway De-
partment. Allotments for highway work
are made by the State Highway Commis-
sion, but the appropriations for mainte-
nance of the highway department are
made from the highway fund by the Leg-
islature.
Principal sources of revenue to the
highway fund are as follows:
1. Motor vehicle license fees.
2..Three-fourths' of tax of lc a gallon
on gasoline.
3. Receipts of United States Govern-
ment funds in the form of Federal aid.
Pension Fund.
The pension fund is maintained for the
payment of pensions to ex-Confederate
soldiers and their widows.
This fund is maintained by an ad va-
lorem tax restricted by the Constitution
to a maximum of 7c on $100 property val-
uation.
The four funds enumerated above, gen-
eral revenue, available school, highway
and pension, are the funds which receive
tax'money. In addition there are a num-
ber of small funds receiving fees.
The financial system of Texas has be-
come rather complicated largely because
of the passage of random legislation as-
sessing small sources of revenue and set-
ting up small funds for its disposal,
Partly because of constitutional provisions
upon which successive laws have been
premised and partly due to individual
opinions of legislators who have intro-
duced the bills, there is now a diversity of
method in handling such funds.
On the whole, the State financial sys-
tem of Texas operates economically, and
taxation is not heavy. Aside from ex-
penditures for schools, the expenses of
the State have been estimated by the Na-
tional Industrial Conference Board and
other economic research bodies as being
among the lowest of the American States
on a per capita basis. Further, the State
is in excellent financial condition. There
is a negligible State bonded debt and
these bonds are all owned by the permas,
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1927 The Texas Almanac and State Industrial Guide, book, 1927~; Dallas, Texas. (https://texashistory.unt.edu/ark:/67531/metapth123785/m1/218/: accessed May 1, 2024), University of North Texas Libraries, The Portal to Texas History, https://texashistory.unt.edu; crediting Texas State Historical Association.