2024 Appropriations
Lim it Override B allot
Measure
Brittany Hines
As s is tant to the Direc tor
Finance Department
Revised 10/ 30/ 2023
Background
• In 1979, Paul Gann sponsored Proposition 4,
called the State Appropriations Limit (later
amended by Proposition 111).
• The State
Appropriations
Limit, commonly
referred to as the “GANN Limit”, is a
constitutional spending cap that limits state
and local governmental spending of
proceeds of taxes
.
W hat are “Appropriations”?
• Appropriation can be defined as the sum of money set aside by formal action for a specific use 1; budget.
• Example: Oakland City Council appropriated $750,000 for the Direct Community Grant Program to award grants to various non- profits.
W hat are “P roceeds of Taxes”?
• Proceeds of Taxes can be defined as money collected or required to be collected on account of or pursuant to any tax 2.
• Examples: Property tax, business license tax, sugar -sweetened beverage tax, and various local measures such as Parks Measure Q – OPR Preservation, Litter Reduction, and Homelessness Support Act. 1 Merriam- Webster. (n.d.). Appropriation. In Merriam - Webster.com dictionary. Retrieved October 17, 2023, from https://www.merriam - webster.com/dictionary/appropriation 2 Tax Proceeds Definition. Law Insider. (n.d.). https://www.lawinsider.com/dictionary/tax - proceeds W hat does this really m ean?
The GANN establishes a
ceiling/limit/maximum on the
amount of tax collected revenue
(tax proceeds) that can be
formally set aside for a specified
reason (appropriation).
W hich tax proceeds are subject to
the lim itation?
• Property Tax
• Sales & Use Tax
• Business License Tax
• Utility Consumption Tax
• Real Estate Transfer Tax
• Transient Occupancy Tax
• Parking Tax
• Sugar Sweetened Beverage Tax
• State Grants
• Local Measures
W hich tax proceeds are exem pt
from the lim itation?
• Debt Service and Property appropriated to service
voter -approved debt (Ex. Measure KK, DD, and U)
• Federal Mandates and Court Orders
• Qualified Capital Outlay
• Appropriations supported by increased gas taxes
(Measure B & BB)
• Appropriations resulting from natural disasters
How do you calculate the Lim it?
• The GANN Limit calculation utilizes Oakland’s “base year” spending level (1987- 88) which is then adjusted each year for the
changes in population
and per capita personal income
3 to arrive at the current year’s GANN
Limit.
3 Changes in population and per capital personal income are provided by the State Department of Finance annually.
Price Factor and Population Information 2023 . California Department of Finance . (2023, May 1). https://dof.ca.gov/wp - content/uploads/sites/352/2023/05/PriceandPopulation2023.pdf
W hat is Oakland’s FY 2023 -20 24 Lim it?
2 Changes in population and per capital personal income are provided by the State Department of Finance annually.
Price Factor and Population Information 2023 . California Department of Finance . (2023, May 1). https://dof.ca.gov/wp - content/uploads/sites/352/2023/05/PriceandPopulation2023.pdf $889,392,842
Including a GANN Limit Override
W hat is a GAN N Lim it O verride?
4 Sec. 4 added Nov. 6, 1979, by Prop. 4. Initiative measure. $79,283,230
GANN Limit Override
FY 2023- 2024
• A GANN Limit override is an
increase to the Appropriations
Limit of a local government by
majority vote; not to exceed four
years 4. The override reaffirms voter
approval to collect and budget
revenues approved by independent
separate measures.
W hat would the limit have been without
the GAN N Lim it O verride in F Y 20 23 -2024?
4 Sec. 4 added Nov. 6, 1979, by Prop. 4. Initiative measure. $810,109,612
No Override
$889,392,842
With Override
$79,283,230
GANN Limit
Override
FY 2023 -2024
W hy Now?
• The previously approved Gann Limit Override (Measure S), approved in March 2020, will sunset on March 3, 2024 5.
• Without another measure increasing the appropriation limit, within two years the City could be restricted from spending voter- approved local tax measures.
5 Presidential Primary Election - 03/03/2020. Alameda County Election Results. (n.d.). https://www.acgov.org/rovresults/240/indexA.htm Does this m easure increase taxes?
• No. This measure does not increase taxes.
W hat is this resolution asking for?
This resolution is requesting
approval to submit the GANN
Limit Override measure to the
voters to authorize an increase
to the appropriations limit for
four years at the March 5, 2024
Special Municipal Election.
• This measure will reaffirm Oakland voters’ original
approval to:
1. Collect, appropriate, and expend proceeds of
taxes from 12 voter approved measures including
the Public Safety and Services Violence
Prevention Act (Measure Z); and
2. Authorize an increase to the appropriations limit
for an additional four years.
W hat will this m easure do?
Thank You
The City of Oakland is committed to the delivery of effective, courteous and responsive services. Residents and employees shall be treated with fairness, dignity and respect. Civic and employee pride are accomplished through the pursuit of excellence by a work force that values and reflects the diversity of the Oakland community.
h ttp s://w w w .oa k la n d c a .g ov/d e p a rtm e n ts/fin a n c e-departm ent