Capital Expenditures are a unique challenge in state budgets because subdivisions of the state
are rarely charged for using the state’s debt or equity for facilities, equipment, and other
investment needs. In an effort to take advantage of the current resource allocation process,
state subdivisions lobby for capital expenditure appropriations. The result is an inefficient
distribution of resources for capital expenditures within state budgets where the most
connected, best funded lobbying efforts frequently win. This paper proposes changing the
capital resource allocation processes by attaching a cost to state appropriated capital
expenditures in an effort to increase accountability and efficiency while improving the long
term credit strength of the state.
| utah_state_capital_resource_allocation__2016_01_21_.pdf |
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