Budget Issues:

State Practices for Financing Capital Projects

AFMD-89-64: Published: Jul 1, 1989. Publicly Released: Jul 1, 1989.

Additional Materials:


Office of Public Affairs
(202) 512-4800

GAO reviewed state practices for budgeting and financing capital projects, focusing on the: (1) criteria states used to define capital assets; (2) methods states used to finance capital assets; and (3) extent to which states linked borrowing maturities to the useful life of capital assets.

GAO found that: (1) most of the nine states reviewed had developed strict criteria for determining what constituted capital assets; (2) the states which strictly defined capital assets required that assets have specific value and life expectancy; (3) most states had specific procedures for budgeting for capital assets, but their practices varied; (4) most states, including the nine reviewed, used current revenues and long-term debt financing to finance capital assets; (5) the nine states did not link the financing method and borrowing maturity to capital assets or their useful lives; and (6) most states linked financing methods and borrowing maturity to such direct factors as prevailing market conditions, states' desires to achieve the best economic results, the need to maintain a high quality bond rating, legislative debt limits, and the political environment.

Jun 28, 2018

Jun 21, 2018

Apr 3, 2018

Feb 6, 2018

Oct 12, 2017

Oct 2, 2017

  • budget icon, source: GAO

    U.S. Territories:

    Public Debt Outlook
    GAO-18-160: Published: Oct 2, 2017. Publicly Released: Oct 2, 2017.

Sep 20, 2017

May 3, 2017

Jan 18, 2017

Jan 17, 2017

Looking for more? Browse all our products here