APPROPRIATIONS LIMIT
------------------------------------------------------------------------------------------------------------------------------- City of South San Francisco FY 2025-26 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.