That method of funding represents an inefficiency in the system.
No, it represents that the funding earmarked for specific purposes is raided for other purposes. Government spenders create virtually infinite numbers of "projects" to spend the taxpayers money on. Each more important than the next...
They always short the police, fire and roads because they know when push comes to shove the people will always vote to increase funding for these things without really asking what happened to the funding that was already approved specifically for those functions. But is never enough...