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6.M. - Page 7 of 10 <br />May 2019 <br />Attachment B <br />Attachment A <br />A. Price Factor: Article XIII B specifies that local jurisdictions select their cost of living <br />factor to compute their appropriation limit by a vote of their governing body. The cost <br />of living factor provided here is per capita personal income. If the percentage <br />change in per capita personal income is selected, the percentage change to be used <br />in setting the fiscal year 2019-20 appropriation limit is: <br />Per Capita Personal Income <br />Fiscal Year Percentage change <br />(FY) over prior year <br />2019-20 3.85 <br />B. Following is an example using sample population change and the change in <br />California per capita personal income as growth factors in computing a 2019-20 <br />appropriation limit. <br />2019-20: <br />Per Capita Cost of Living Change = 3.85 percent <br />Population Change = 0.47 percent <br />Per Capita Cost of Living converted to a ratio: <br />Population converted to a ratio: <br />Calculation of factor for FY 2019-20: <br />3.85 + 100 = 1.0385 <br />100 <br />0.47 + 100 = 1.0047 <br />100 <br />1.0385 x 1.0047 = 1.0434 <br />342 <br />