TO: AC Transit Board of Directors
FROM: Michael A. Hursh, General Manager
SUBJECT: FY 2021-22 Appropriations Limit Notice
ACTION ITEM
RECOMMENDED ACTION(S):
Title
Consider the adoption of Resolution No. 21-021 providing notice of the scheduled adoption of an Appropriations Limit for Fiscal Year 2021-22.
Body
STRATEGIC IMPORTANCE:
Goal - Financial Stability and Resiliency
Initiative - Financial Efficiency and Revenue Maximization
Establishing the District's Appropriations Limit is necessary for compliance with state law.
BUDGETARY/FISCAL IMPACT:
There is no budgetary or fiscal impact from this report.
BACKGROUND/RATIONALE:
The District must make available to the public the Appropriations Limit for FY 2021-22 and supporting documentation. 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 appropriations limit (See Attachment 2). This includes (a) the California per Capita Personal Income Index which provides the cost-of-living factor and (b) the change in population from the previous year by county and cities and unincorporated areas within each county which provides the population factor. The special districts that are required by law ...
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