When planning for capital projects and purchases, criminal justice administrators must first decide if the project or purchase is outside of the agency’s standard operating budget. This may be determined by looking at the government’s capitalization policies. The policy will likely indicate a specific dollar amount that requires the need for a capital budget request. For example, costly equipment, such as a police car, requires a capital budget request, while equipment such as a personal computer may be included in the operating budget. Most state and federal governments have limited resources for capital improvements; thus, capital budgets may be subject to more scrutiny than operating budgets. In times of budget shortfalls, capital improvements are typically the first items cut from the budget. Consequently, an alternative means of funding may be needed to pursue a capital project or purchase.
To prepare for this Discussion:
With these thoughts in mind:
Post a brief description of the capital project you selected. Then describe two methods of financing that might be used for the project. Finally, explain one advantage and one disadvantage of each method.