How the Federal Government budgets for expensive federally-owned capital assets is an example.  We issue lots of excellent guidance to agencies about capital planning best practices, but our current budget system does a poor job of planning for these funding needs where it counts — when Congress approves appropriations bills.  Before I retired from OMB, I helped design and draft legislation for a new budget mechanism — a Federal Capital Revolving Fund — that would greatly improve budget incentives in this area.  Read about the problem and the solution here.