BOARD AGENDA MEMORANDUM
SUBJECT:
Title
Resolution Establishing Appropriations Limit for Fiscal Year 2017-18.
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RECOMMENDATION:
Recommendation
A. Select the cost-of-living factor to establish the District's Appropriations Limit; and
B. Adopt a Resolution ESTABLISHING APPROPRIATIONS LIMIT FOR FISCAL YEAR 2017-18.
Body
SUMMARY:
The Gann Spending-Limitation Initiative, Article XIII B of the California Constitution, was adopted as Proposition 4 in June 1979, and was subsequently modified by Proposition 111 in June 1990. Under this article of the State Constitution, the District is required to annually adopt a resolution setting a limitation on the annual appropriation of proceeds from taxes. The Gann Spending-Limitation Initiative provides for the limitation of state and local government appropriations. The Gann Initiative is a limitation on tax revenues, rather than a direct limitation on appropriations. Major provisions of the Gann Initiative and subsequent Proposition 111 modification include:
1. Appropriations subject to limitation may not exceed appropriations made in 1978-79.
2. Appropriations financed through service fees (to the degree that they do not exceed the cost of performing the service), grant programs, fines and forfeitures, and other specified "non-tax" sources are not subject to the appropriations limit.
3. For identifying "proceeds from taxes" under the Gann Initiative, state subventions that are unrestricted as to their use are considered to be tax sources.
4. Under the original Gann Initiative, all proceeds from taxes received in excess of the appropriations limit are required to be returned through refunds or revision in tax rates and fee schedules within the next two fiscal years - or voter approval to increase the appropriations limit is required.
5. Originally, the Gann Initiative required no formal review; however, Proposition 111 requires that the annual calculation be reviewed as part of the District's annual financial...
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