TO: AC Transit Board of Directors
FROM: Michael A. Hursh, General Manager
SUBJECT: FY 2022-23 Appropriations Limit
ACTION ITEM
AGENDA PLANNING REQUEST: ?
RECOMMENDED ACTION(S):
Title
Consider the adoption of Resolution No. 22-029 establishing the Appropriations Limit for Fiscal Year 2022-23 at $625,563,311.
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:
On July 13th, the Board of Directors adopted Resolution No. 22-028 giving notice of the scheduled adoption of an Appropriations Limit for FY 2022-23. The notice and supporting documentation associated with the proposed adoption of the Appropriations Limit was posted in the General Office Lobby, on the District's website and was made available to the public for at least 15 days prior to adoption. The documents are on file with the District Secretary's Office.
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...
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