N
CE
DEPARTMENT OF Gavin Newsom • Governor
CALIFORNIA FINANCE 1021 O Street, Suite 3110 • Sacramento CA 95814 • www.dof.ca.gov
OFFICE OF THE DIRECTOR
April 30, 2024
Dear Fiscal Officer:
Price Factor and Population Information
Appropriations Limit
California Revenue and Taxation Code section 2227 requires the Department of Finance to transmit an estimate of the percentage change in population to local governments.
Each local jurisdiction must use their percentage change in population factor for January 1, 2024, in conjunction with a change in the cost of living, or price factor, to unincorporated county population percentage change. Attachment C provides the population percentage change for counties and their summed incorporated areas. The population percentage change data excludes federal and state institutionalized populations and military populations.
Population Percent Change for Special Districts
Some special districts must establish an annual appropriations limit. California Revenue and Taxation Code section 2228 provides additional information regarding the appropriations limit. Article XIII B, section 9(C) of the California Constitution exempts certain special districts from the appropriations limit calculation mandate. Special districts required by law to calculate their appropriations limit must present the calculation as part of their annual audit. Any questions special districts have on this requirement should be directed to their county, district legal counsel, or the law itself. No state agency reviews the local appropriations limits.
Population Certification
The population certification program applies only to cities and counties. California Revenue and Taxation Code section 11005.6 mandates Finance to automatically certify any population estimate that exceeds the current certified population with the State Controller's Office. Finance will certify the higher estimate to the State Controller by June 1, 2024. Please note: The prior year's city population estimates may be revised. The per capita personal income change is based on historical data.
If you have any questions regarding this data, please contact the Demographic Research Unit at (916) 323-4086.
/s Richard Gillihan
RICHARD GILLIHAN
Chief Operating Officer
Attachment
May 2024
Attachment A
Price Factor: Article XIII B specifies that local jurisdictions select their cost of living factor to compute their appropriation limit by a vote of their governing body. The cost of living factor provided here is per capita personal income. If the percentage change in per capita personal income is selected, the percentage change to be used in setting the fiscal year 2024-25 appropriation limit is:
Per Capita Personal Income
Fiscal Year Percentage change
(FY) over prior year
2024-25 3.62
Following is an example using sample population change and the change in California per capita personal income as growth factors in computing a 2024-25 appropriation limit.
2024-25:
Per Capita Cost of Living Change = 3.62 percent
Population Change = 0.17 percent
Per Capita Cost of Living converted to a ratio: 3.62 + 100 = 1.0362 100
Population converted to a ratio: 0.17 + 100 = 1.0017
100
Calculation of factor for FY 2024-25: 1.0362 × 1.0017 = 1.0379 Fiscal Year 2024-25
Attachment B
Annual Percent Change in Population Minus Exclusions*
January 1, 2023 to January 1, 2024 and Total Population, January 1, 2024 Total
County Percent Change - Population Minus Exclusions .... Population City 23-24 1-1-23 1-1-24 1-1-24
Monterey
Carmel-By-The-Sea 0.55 3,105 3,122 3.122
Del Rey Oaks 0.64 1,559 1,569 1.569
Gonzales 0.98 8,384 8,466 8,466
Greenfield 2.01 20.155 20,561 20.561
King City 1.78 13,968 14.216 14.216
Marina 1.91 22.269 22.695 22.695
Monterey 0.56 24,096 24,232 27,106
Pacific Grove 0.63 14.872 14,966 14,966
Salinas 0.73 160,870 162,037 162,037
Sand City 0.26 378 379 379
Seaside 0.04 28,075 28.085 30,197
Soledad 2.94 19.565 20.140 26,966
Unincorporated 0.75 104,372 105.157 105,334
County Total 0.94 421,668 425,625 437.614
*Exclusions include residents on federal military installations and group quarters residents in state mental institutions, state and federal correctional institutions and veteran homes.