Daily Archives: October 4, 2023

Investment and Operation Expenditures Revisited

A few readers wrote to me asking for further clarification on the differences between investment and operation expenditures. For example, should a one-to-one initiative be classified as an operation or investment expenditure. This short post helps answer such questions. After reading Rethink District Budgeting Part I and Part II, it is apparent that all the new “budget dance” moves start with differentiating between operation and investment expenditures. While Table 1 can be readily applied to make the distinction for most expenditures, there are cases where the distinction is not that clear cut. For certain expenditures, people may have genuine differences […]