CONCEPTS OF AND APPROACHES TO CAPITAL BUDGETING AND DISCUSSION

CAPITAL BUDGETING IN RELATIONSHIP TO HIGHWAYS IS DEFINED AS THAT FUNCTION OF ALLOCATING FUNDS FOR CONSTRUCTING SPECIFIC HIGHWAY FACILITIES NECESSARY FOR THE ADEQUATE, SAFE, AND FAST MOVEMENT OF TRAFFIC ON THE HIGHWAYS. MONEY SPENT FOR CAPITAL PURPOSES IS DISTINGUISHED FROM MONEY SPENT FOR CURRENT OPERATING FUNCTIONS BECAUSE OF THE DIFFERENCE IN TIME DURATION THAT THE PRODUCTS OF THE EXPENDITURES SERVE THEIR FUNCTIONS. CAPITAL EXPENDITURES FOR IDENTICAL FUNCTIONS OR PURPOSES ARE NOT REPETITIVE, BUT THE EXPENDITURE FOR MAINTENANCE AND OPERATING FUNCTIONS ARE GENERALLY REPETITIVE, MONTH AFTER MONTH. THE RELATIONSHIP OF FINANCING TO CAPITAL BUDGETING IS DISCUSSED. ASPECTS OF CAPITAL BUDGETING FOR FAMILIES, PUBLIC WORKS AND CORPORATIONS ARE DELINEATED AND COMPARED WITH HIGHWAY DEPARTMENT BUDGETING. THE SAME PRINCIPLES PREVAIL IN HIGHWAY PLANNING AS IN PRIVATE INDUSTRY FOR DECISION-MAKING. RETURNS ON THE INVESTMENT UNDER WHERE-ALL BENEFITS MUST RULE. TANGIBLE AND INTANGIBLE FACTORS WEIGHED BY JUDGMENT FOR BUDGETING OF FUNDS FOR CAPITAL IMPROVEMENTS IN THE HIGHWAY FIELD ARE DISCUSSED. THE OBJECTIVES TO BE GAINED BY PLANNING A HIGHWAY CONSTRUCTION PROGRAM ARE AS IMPORTANT TO THE CITY, TO THE COUNTY, AND TO THE STATE, AS THEY ARE TO CAPITAL BUDGETING BY ANY ORGANIZATION. THE MOST POSSIBLE SERVICE TO THE GREATEST NUMBER OF PEOPLE MUST BE PROVIDED BY PLANNING HIGHWAY CAPITAL IMPROVEMENTS WISELY.

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Filing Info

  • Accession Number: 00200979
  • Record Type: Publication
  • Files: TRIS, TRB
  • Created Date: Sep 29 1994 12:00AM