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Date: |
September 15, 2026 |
08 |
Title
Approve the Fiscal Year 2026-27 Appropriation Limit for the County of San Diego (Districts: All)
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Overview
Each year, pursuant to Article XIII B: Government Spending Limitation of the California Constitution and Government Code Section 7910, the Board of Supervisors establishes its appropriation limit for the County of San Diego (County). Today’s action requests adoption of a resolution establishing the County’s Appropriation Limit for Fiscal Year 2026-27, calculated to be approximately $8.2 billion. Only revenues from Proceeds of Taxes (property tax and certain state subventions) are subject to this limit. The County is substantially under the limit, having approximately $4.0 billion of appropriations tied to Proceeds of Taxes that are subject to the limit in Fiscal Year 2026-27.
Body
Recommendation by Chief Administrative Officer:
1) 1) Adopt the Resolution entitled: A RESOLUTION OF THE BOARD OF SUPERVISORS OF THE COUNTY OF SAN DIEGO RELATING TO ADOPTING AN APPROPRIATION LIMIT FOR THE COUNTY OF SAN DIEGO FOR FISCAL YEAR 2026-27
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Equity Impact Statement
The Appropriation Limit is based on appropriations from tax revenue. It is intended to address potential inequities to the public by capping the growth of County of San Diego expenditures and returning excess revenue from proceeds of tax to taxpayers.
Sustainability Impact Statement
The proposed expenditure Appropriation Limit caps growth of County expenditures. This limit is based on changes in California Per Capita Income and growth of the population in San Diego County. This action contributes to the County of San Diego’s (County) sustainability goal of aligning the County’s available resources with services while maintaining fiscal stability and ensuring long-term solvency.
Fiscal Impact
There is no fiscal impact associated with adoption of this resolution. There will be no change in net General Fund cost and no additional staff years.
Business Impact Statement
N/A
Advisory Board Statement
N/A
Background
In 1979 voters adopted Proposition 4, also known as the Gann Limit, to limit the growth of State and local expenditures by means of an Appropriation Limit. Enacted as Article XIII B of the California Constitution, the Appropriation Limit was permitted to grow by inflation and population growth. Any Proceeds of Tax revenues (essentially property tax and other in-lieu taxes) that are collected in excess of the Appropriation Limit must be returned to the taxpayers.
Due to the election of a Gann Limit waiver by the voters in 1988 and a change in the law in 1990, the calculation of the Appropriation Limit for the County of San Diego has been modified through the years. From 1980 to 1987, the Appropriation Limit was calculated under the original Proposition 4 language. From 1988 to 1992, the Appropriation Limit was calculated under the provision of the Gann Limit Waiver. From 1992 to the present, the Appropriation Limit has been calculated pursuant to Proposition 111.
Proposition 111 was passed by the voters in June 1990 in order to modify the Proposition 4 Appropriation Limit to more closely reflect economic conditions within the State. The previous applicable consumer price indices were replaced as the inflation factor (by which the Appropriation Limit could grow) by a choice of (1) the change in California Per Capita Income or (2) the growth in the local assessment roll due to non-residential new construction. Qualified capital projects may also be excluded from Proceeds of Taxes. The Fiscal Year 1992-93 Appropriation Limit was the first to reflect the changes enacted by Proposition 111.
Estimated Proceeds Subject to Limitations
The Appropriation Limit, based on the change in California Per Capita Income and the growth of the population in San Diego County, is calculated to be $8,220,417,817 for Fiscal Year 2026-27. San Diego County (County) appropriations tied to the Proceeds of Taxes, based upon the Fiscal Year 2026-27 Adopted Operational Plan are $3,980,293,508. Therefore, the County is substantially below the Appropriation Limit.
Procedural Requirements
California Government Code Section 7910, which implemented Article XIII B, requires that the documentation used in the determination of the Appropriation Limit shall be made available to the public 15 days prior to the adoption of the resolution. That documentation was made available from the Clerk of the Board before August 31, 2026, and is herewith provided for your information as Attachment A, and for the funds included in Attachment B.
Any judicial action or proceeding to attack, review, set aside, void or annul the action taken pursuant to this section shall occur within 45 days of the effective date of the resolution.
Linkage To The County Of San Diego Strategic Plan
Establishment of the Appropriation Limit for the County of San Diego (County) for Fiscal Year 2026-27 supports the Equity, Sustainability, Community, Empower, and Justice Initiatives in the County of San Diego’s 2026-2031 Strategic Plan by establishing County resources available to meet the highest priority needs of residents.
Respectfully submitted,
Ebony N. Shelton
Chief Administrative Officer
Attachment(s)
Attachment A - Resolution-Appropriation Limit
Attachment B - Funds Subject to Appropriation Limit
Attachment C - Documentation Determination of Appropriation Limit