Glosses over the real reasons, both high costs and cost overruns are incentivized.
Usually this money comes from outside sources, such as higher-level governments, but even when it is purely local, individual stakeholders may treat it as money coming from other parts of the city. In this environment, there is an incentive to demand extra scope in order to spend other people’s money on related but unnecessary priorities.
There is little reason to be efficient when spending other people’s money without their input or any long term consequences.
Usually this money comes from outside sources, such as higher-level governments, but even when it is purely local, individual stakeholders may treat it as money coming from other parts of the city. In this environment, there is an incentive to demand extra scope in order to spend other people’s money on related but unnecessary priorities.
There is little reason to be efficient when spending other people’s money without their input or any long term consequences.