APPROPRIATIONS LIMIT
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APPROPRIATIONS LIMITS
In 1979, California voters approved Proposition 4, known as the Gann Appropriations Limit (Gann Limit). The Gann Limit is part of California State Constitution Article XIIIB. The Gann Limit sets an annual appropriation ceiling on the amount of tax proceeds to all California municipalities. In addition to limits of tax proceeds, the Gann Limit restricts the amount of money a city can appropriate based on the previous year appropriations plus a per capita personal income (CPI) change and a percent population change. Since its initial passage, the Gann Limit has been modified through various propositions. The voters approved the most recent modification in 1990 under Proposition 111. Proposition 111 exempted some appropriations such as Redevelopment money and changed the calculation formula, which greatly increased the appropriations limit. Currently, the City of South San Francisco uses the California Department of Finance statistics of CPI and percent population change to formulate the Gann Limit for the City for each fiscal year.
Appropriations Limit ‐ FY 2022‐23
Fiscal Year
CPI/Personal
Income %
Change
Population
% Change
Change
Factor
Cumulative
Change
Factor
Appropriation
Limit
2013‐14 5.12 1.51 6.71 493.82 115,362,390 2014‐15 (0.23) 0.79 0.56 497.14 116,008,419 2015‐16 3.82 0.68 4.53 524.19 121,263,600 2016‐17 5.37 0.43 5.82 560.52 128,321,142 2017‐18 3.69 0.11 3.80 585.62 133,197,345 2018‐19 3.67 0.49 4.18 614.28 138,764,994 2019‐20 3.85 0.04 3.89 642.07 144,162,953 2020‐21 3.73 0.98 4.75 677.31 151,010,693 2021‐22 5.73 (0.88) 4.80 714.63 158,259,206 2022‐23 7.55 (0.92) 6.56 768.07 168,641,010 FY 2018‐19 FY 2019‐20 FY 2020‐21 FY 2021‐22 FY 2022‐23
Proceeds of Taxes 85,548,494 92,903,301 83,865,039 87,751,448 99,465,705 Appropriations Subject to Limit 85,548,494 92,903,301 83,865,039 87,751,448 99,465,705 Current Limit 138,764,994 144,162,953 151,010,693 158,259,206 168,641,010 Amount Under Limit 53,216,501 51,259,652 67,145,654 70,507,758 69,175,306