APPROPRIATIONS LIMIT
------------------------------------------------------------------------------------------------------------------------------- City of South San Francisco FY 2024-25 Proposed Operating Budget
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 percentage change of Per Capita Cost of Living and percent population change to formulate the Gann Limit for the City for each fiscal year.
Appropriations Limit - FY 2024-25
Fiscal Year
CPI/Personal
Income %
Change
Population
% Change
Change
Factor
Cumulative
Change
Factor
Appropriation
Limit
Proceeds of
Taxes /
Appropriation
s Subject to
Limit
Amount
Under the
Limit
2014-15 -0.23% 0.79% 0.56% 497.14% 116,008,419 59,134,424 56,873,995 2015-16 3.82% 0.68% 4.53% 524.19% 121,263,600 62,981,924 58,281,676 2016-17 5.37% 0.43% 5.82% 560.52% 128,321,142 75,222,871 53,098,271 2017-18 3.69% 0.11% 3.80% 585.62% 133,197,345 82,850,044 50,347,301 2018-19 3.67% 0.49% 4.18% 614.28% 138,764,994 85,548,494 53,216,500 2019-20 3.85% 0.04% 3.89% 642.07% 144,162,953 92,903,301 51,259,652 2020-21 3.73% 0.98% 4.75% 677.31% 151,010,693 83,865,039 67,145,654 2021-22 5.73% -0.88% 4.80% 714.63% 158,259,206 87,751,448 70,507,758 2022-23 7.55% -0.92% 6.56% 768.07% 168,641,010 99,465,705 69,175,306 2023-24 4.44% 0.00% 4.44% 806.61% 176,128,671 114,872,716 61,255,955 2024-25 3.62% -0.25% 3.36% 837.08% 182,048,268 115,997,004 66,051,264