Quote:
Originally Posted by ynwa03
Even if this is true, what’s the reasoning?
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The reasoning is to ensure that municipalities don't blow their brains out on operating expenses and ignore (or inadequately fund) long-term infrastructure, because (for example) they're focused on short-term re-election prospects. Human beings suck at long term planning and if they're not forced to, they won't do it. And then you've got a bigger problem when those chickens come home to roost. Plus, if the city can't look to other orders of government to fund its operating expenses, they're likely to be a bit more realistic about what they can afford. In theory, anyway.
I don't know if I'm in favour of using a capital budget on an arena, but I'm damn glad there is a capital budget... for one thing, the state of the roads around my place is a disaster.