|
Problem |
Federal
Assets
(defense & nondefense) |
Infrastructure
(transportation) |
Other Investment
(tangible
and intangible) |
1 |
There is little long-term planning
for capital in life-cycle context outside of the Department of Defense. |
o |
Require 10-year capital plan linked to
budget. |
o |
Require 10-year planning by grant
recipients. |
o |
Favor grant recipients that do
long-term pl anning. |
o |
Set capital plan in context of agency GPRA plans. |
o |
Reward jurisdictions doing high quality planning. |
|
o |
Enforce rules in Capital Programming Guide. |
|
|
|
|
o |
Plan for full asset life-cycle.
|
|
|
|
|
2 |
No one is fully responsible for capital planning. |
o |
Hold agency heads primarily responsible. |
o |
Improved accountability needed here too? |
o |
Improved accountability needed here too? |
3 |
Information about physical, financial characteristics
of assets is inadequate. |
o |
Require agency system for property, financial
accountability. |
o |
Require inventory of use and condition. |
|
4 |
Accounting standards do not include current cost or imputed
interest. |
o |
Ask FASAB to consider current cost, imputed interest. |
|
|
|
|
5 |
Pork barrel projects are often chosen over
projects with higher returns. |
o |
Require benefit/cost studies to be submitted, published
on internet. |
o |
Require grantees to publish benefit-cost by
project. |
o |
Require grantees to publish benefit-cost
by program.
Summarize them in Analytical Perspectives. |
o |
Ask CBO, GAO to provide timely studies to Congress. |
o |
Summarize them in Analytical Perspectives. |
6 |
Dedicated revenues are not fully used to finance designated
investment. |
|
|
o |
Consider a separate cap for infrastructure funded by
earmarked revenues. |
|
|
7 |
There are no goals or targets for any category of
investment. |
|
|
o |
Consider alternative ways to set investment targets. |
o |
Consider alternative ways to set investment targets. |
8 |
Funding is not always assured to complete projects
efficiently. |
o |
Require regular or advance appropriations for full cost
of usable segments. |
o |
Use long-range plans to manage funding. |
o |
Use long-range plans to manage funding. |
9 |
Projects often take more than one year to complete. |
o |
Require multiyear appropriations for projects that will
take years to complete. |
|
|
|
|
10 |
Spikes in necessary funding sometimes deter justified
investment. |
o |
Aggregate capital in CAFs; cover remaining spikes w/central
funding if justified. |
o |
Use long-range plans to manage funding. |
|
|
11 |
Programs are not charged uniformly and fully for their
use of capital. |
o |
CAFs would charge all uniformly for capital use. |
|
|
|
|
12 |
Programs are not charged uniformly for their use of labor,
support services. |
o |
Charge for retiree benefits, and support services. |
|
|
13 |
Inappropriate choices are made to lease vs. buy. |
o |
Improve incentives to make economic choices. |
|
|
|
14 |
Cost over-runs, delays, and poor quality plague many
acquisitions. |
o |
Use performance-based management system to acquire
assets. |
|
|
|
|
15 |
Government often buys hi-tech, custom projects that come
a cropper. |
o |
Require off-the-shelf or prototype; Raines rules. |
|
|
|
16 |
Capital is often poorly maintained. |
o |
Plan maintenance and monitor actual. |
o |
Require grantees to meet maintenance
criteria. |
|
o |
Consider advance funding. |
|
17 |
Capital is often poorly utilized. |
o |
Charge for cost of capital; share revenue from property
disposition. |
|
|