TO: AC Transit Board of Directors
FROM: Michael A. Hursh, General Manager
SUBJECT: FY 2020-21 Appropriations Limit Adoption
ACTION ITEM
RECOMMENDED ACTION(S):
Title
Consider adoption of Resolution No. 20-037 establishing the Appropriations Limit for Fiscal Year 2020-21 at $551,175,027.
Body
STRATEGIC IMPORTANCE:
Goal - Financial Stability and Resiliency
Initiative - Financial Efficiency and Revenue Maximization
Adopting an appropriation limits is necessary for compliance with state law.
BUDGETARY/FISCAL IMPACT:
There are no budgetary or fiscal impacts associated with this report.
BACKGROUND/RATIONALE:
On June 24th, the Board of Directors adopted Resolution No. 20-033 giving notice of the scheduled adoption of an Appropriations Limit for FY 2020-21. The notice and supporting documentation must be available to the public at least 15 days prior to the adoption of an Appropriations Limit. The notice and supporting documentation were posted on the District's website and in the General Office lobby on June 29th and are on file with the District Secretary's Office for public inspection.
Article XIIIB of the California Constitution places limitations on the annual appropriations of the State and each local government. In 1979, California voters approved Proposition 4 (Article XIIIB of the California State Constitution). Informally known as the "Gann Initiative", Article XIIIB provides limits to the amount of tax proceeds state and local governments can spend each year. The base year was set at FY 1978-79. In 1980, the State Legislature added Section 9710 of the Government Code stating that the governing body of each local jurisdiction must establish, by resolution, an appropriations limit for the following year.
The limit for any fiscal year is equal to the previous year's limit, adjusted for population changes and a cost of living factor. The California Department of Finance publishes each May the statistical information needed to calculate the ...
Click here for full text