What Is the Gann Limit or the State Appropriations Limit?
What Is the Gann Limit or the State Appropriations Limit? By Chris Micheli In the past few years, but particularly this year, lots of people in and around the Capitol are talking about the “Gann Limit” or the “State Appropriations Limit,” often referred to as “SAL.” So, what is the SAL or the Gann Limit? Basically, if the state has revenues above the SAL over two consecutive years, the Constitution requires the state to divide the excess revenues between rebates to taxpayers and additional spending on schools. The SAL or Gann Limit was enacted by the voters in November 1979 as Proposition 4, just one year after voters adopted Proposition 13 and their continued interest in limiting state and local government spending. Basically, Prop. 4 capped spending at 1978-79 levels, which are adjusted annually based upon changes in population and cost-of-liv...