Voters approved Proposition 4 in November of 1979, an initiative that added Article XIII B to the California Constitution. This constitutional amendment, also known as the Gann initiative, placed limits on the growth of expenditures for publicly funded programs.
Division 9 of Title 1, beginning with Section 7900 of the Government Code, was then added to laws to establish the process for calculating state and local government appropriations limits and appropriations subject to limitation under Article XIII B of the California Constitution.
These constitutional and statutory sections explain and define the appropriations limit and appropriations subject to limitation as they apply to state and local government and require that each entity of government formally "adopt" its appropriations limit for a given fiscal year.
2021-22 Gann Limit Calculations Summary