Constitutional Spending Limit
The voters of California, during a special election in
1979, approved Article XIII(B) of the California
State Constitution which provides that the City’s
annual appropriations be subject to certain state
limitations. This appropriations limit is often referred to as the GANN Limit.
In 1980 the State Legislature added Section 9710 to
the Government Code providing that the governing
body of each local jurisdiction must establish, by
resolution, an appropriations limit for the following
year. The appropriations limit for any fiscal year is equal to the previous year’s limit adjusted for
population changes and the changes in the US
Consumer Price Index (or California per capital
personal income, if smaller). The necessary
statistical information is provided each year by th e
California Department of Finance.
The City’s limitation is calculated each year and
established by a resolution of the City Council as
part of the annual Operating Budget process.
Using the population and per capita personal income
data provided by the California Department of
Finance, the City’s appropriation limit for Fiscal Year 2022-23 is $337,778,231. Appropriations subject to
the limitation in the 2022-23 Operating Budget total
$120,279,920, which is $ 217,498,311 or 64% less
than the computed allowable limit.
The Article XIII(B) limitation is not a restricting
factor for the City of Fontana, but will be monitored
annually and budget adjustments recommended if
they are required in future years.
Appropriations Limit
2021-22 Appropriations Limit $289,644,326
2022-23 Adjustment Factors:
Population (1.39) 1.0139
Per capita income change (7.55%) 1.0755
Total adjustment 1.0904
2022-23 Appropriations Limit $337,778,231
Appropriations Subject to Limit
Proceeds of taxes
Less: qualified capital outlay
Appropriations subject to limit $120,279,920
Percentage of Appropriations Limit used 36%
$0
$40,000,000
$80,000,000
$120,000,000
$160,000,000
$200,000,000
$240,000,000
$280,000,000
$320,000,000
$360,000,000
2018-19 2019-20 2020-21 2021.22 2022.23
Five-Year History of Appropriations Limit
Appropriations Limit Appropriations Subject to Limit