May 2023
Dear Fiscal Officer:
Subject: Price Factor and Population Information
Appropriations Limit
California Revenue and Taxation Code section 2227 requires the Department of Finance (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, 2023, in conjunction with a change in the cost of living, or price factor, to calculate their appropriations limit for fiscal year 2023-24. Attachment A provides the change in California’s per capita personal income and an example for utilizing the price factor and population percentage change factor to calculate the 2023-24 appropriations limit. Attachment B provides the city and 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. The code section and the California Constitution can be accessed at the following website: http://leginfo.legislature.ca.gov/faces/codes.xhtml.
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, 2023.
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.
JOE SPEPHENSHAW
Director
By:
Erika Li
Chief Deputy Director
Attachment
May 2023
Attachment A
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 2023-24 appropriation limit is:
Per Capita Personal Income
Fiscal Year Percentage change
(FY) over prior year
2023-24 4.44
B. Following is an example using sample population change and the change in California per capita personal income as growth factors in computing a 2023-24 appropriation limit.
2023-24:
Per Capita Cost of Living Change = 4.44 percent
Population Change = -0.35 percent
Per Capita Cost of Living converted to a ratio: 4.44 + 100 = 1.0444 100
Population converted to a ratio: -0.35 + 100 = 0.99
100
Calculation of factor for FY 2023-24: 1.0444 x 0.99 = 1.04 Fiscal Year 2023-24
Attachment B
Annual Percent Change in Population Minus Exclusions*
January 1, 2022 to January 1, 2023 and Total Population, January 1, 2023 Total
County Percent Change --- Population Minus Exclusions --- Population City 2022-2023 1-1-22 1-1-23 1-1-2023
Contra Costa
Antioch 0.94 114,362 115,442 115,442
Brentwood 0.46 64,219 64,513 64,513
Clayton -1.08 10,782 10,666 10,666
Concord -0.84 123,102 122,074 122,074
Danville -0.79 43,166 42,823 42,823
El Cerrito -0.88 25,710 25,484 25,484
Hercules 1.36 25,944 26,297 26,297
Lafayette -0.46 25,119 25,004 25,004
Martinez -0.67 36,790 36,543 36,543
Moraga -0.95 17,055 16,893 16,893
Oakley 1.67 44,257 44,995 44,995
Orinda -0.52 19,326 19,225 19,225
Pinole -1.07 18,442 18,244 18,244
Pittsburg 0.16 74,688 74,809 74,809
Pleasant Hill -0.89 33,697 33,397 33,397
Richmond -0.88 114,521 113,518 113,518
San Pablo -1.02 31,625 31,301 31,301
San Ramon -0.86 83,587 82,870 82,870
Walnut Creek -0.51 69,603 69,245 69,245
Unincorporated -0.85 175,719 174,226 174,310
County Total -0.36 1,151,714 1,147,569 1,147,653
*Exclusions include residents on federal military installations and group quarters residents in state mental institutions, state and federal correctional institutions and veteran homes.