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NYS Comptroller

THOMAS P. DiNAPOLI

The Academy for New York State's Local Officials

Multiyear Financial Planning: A Tutorial for Local Government Officials

Module 3: Projecting Expenditures

Equipment and Capital Outlay

Sensitive to Economic Change: Yes
Predictable: Yes
Controllable: Yes
Large Portion of Expenditures: Generally no, though capital expenditures may be significant in the long term.

Equipment and capital outlay includes purchases of equipment and other capital outlay such as construction and purchase of rights-of-way, land, or existing structures.

Unlike personal services, these expenditures are usually budgeted on a departmental level, so department heads will be your best source for accurate projections.

On the AUD (and in OSC’s template), such purchases may actually show up in one of three different places. The equipment and capital outlay line will only include pay-as-you-go capital costs. Purchases financed through bonds will show up in an operating fund as either “debt service” or “interfund transfers” to the debt service fund.

A long-range capital plan will help determine if there are likely to be any major changes in capital outlay. For information on constructing a more detailed and accurate capital plan, please see our Local Government Management Guide on Multiyear Capital Plans [pdf] and our On-Line Tutorial on Capital Planning and Budgeting.

  Next: Contractual Expenses