Capital budgets differ from operating budgets. Whereas operating budgets
address daily expenses like compensating employees and purchasing supplies, capital budgets include
large-expense items (often infrastructure projects) that might take multiple years to build.
In the past, state capital budgeting has been a relatively bipartisan exercise, with there often being
something for state legislators on both sides of the political aisle. However, according to a piece by Liz
Farmer (2018) in Governing magazine, “States’ Capital Budgets Have Become Partisan Battlegrounds,
(Links to an external site.)” the capital budgeting process is being increasing politicized.
What do you think? Is the “politicization” of the capital budgeting process good or bad? Does increasing
partisanship just make the budgeting process more toxic? Or, should capital budgets be seriously debated
in the same way that operating budgets often are?
Sample Solution
