The Case of Public Capital Budgeting and Management Processes in the United States

This chapter provides a case study from the United States regarding public capital budgeting and management on the federal, state, and local levels. The U.S. case of the public investment process (or positive theory for United States public investment) is described and compared with the normative theory outlined in Chapter 1 to understand the deviation between the positive and normative theories. This chapter presents an analysis of four main components of the USA capital budgeting system including (1) long-term public capital planning, (2) annual public budgeting and financing, (3) project execution, and (4) public infrastructure evaluation. In addition, this chapter shows public infrastructure needs and financing issues in the United States.