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Capital budgets: the building blocks for government infrastructure.

Government Finance Review

| June 01, 2007 | Pagano, Michael A.; Shock, David R. | COPYRIGHT 2007 Government Finance Officers Association. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan.  All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)Copyright

Capital budgets are used to allocate funds for physical assets that are to be acquired, constructed, renovated, and rehabilitated. In order to develop a capital budget, a jurisdiction must assess its infrastructure needs, prioritize among projects, integrate long-term capital plans into the service-delivery responsibilities of the government, evaluate a range of funding options, and schedule the regular repair and replacement of the capital stock. (1) This is most often achieved through the adoption of a formal capital improvement program (CIP), which sets forth a jurisdiction's construction and maintenance plans over a five- or six-year period. The National Advisory ...

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