In the pursuit of “life, liberty and happiness,” safety precedes the others. Therefore it makes sense that the federal government’s mandatory, exclusive and primary job is to provide for the common defense. What is curious, however, is that funding for this core responsibility is considered discretionary.
Many states in America have two separate budgets: one for capital expenses and another for operating activities. Part of the reason for this is that capital improvement projects can take years to plan and execute (think highway construction, land acquisition and large renovation of real property). In other cases, there are two state budgets because the method of financing major, multi-year projects may vary. Some capital projects are financed by general purpose taxes while others may be paid for by federal grants, borrowing, or dedicated revenue such as a gasoline tax.
By separating investments from the costs of annual operations, long-term capital improvement projects are not seen as deficit drivers. They’re seen as what they are: necessary — if expensive — upkeep to continue providing robust services to voters.
Read more at The Hill.
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