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6.A. - Page 8 of 10 <br />EST ❑�- <br />Z <br />W IIII C2 <br />4 17 <br />DEPARTMENT ❑F <br />OFFICE OF THE DIRECTOR <br />May 2020 <br />Dear Fiscal Officer: <br />GAVIN NEWSOM - GOVERNOR <br />STATE CAPITOL ■ ROD 1 145 0 SACRAMENTO CA ■ 9 581 4-4998 E WWW.00 F. CA.GOV <br />Subject: Price Factor and Population Information <br />Appropriations Limit <br />California Revenue and Taxation Code section 2227 requires the Department of Finance to <br />transmit an estimate of the percentage change in population to local governments. Each local <br />jurisdiction must use their percentage change in population factor for January 1, 2020, in <br />conjunction with a change in the cost of living, or price factor, to calculate their appropriations <br />limit for fiscal year 2020-21. Attachment A provides the change in California's per capita personal <br />income and an example for utilizing the price factor and population percentage change factor <br />to calculate the 2020-21 appropriations limit. Attachment B provides the city and unincorporated <br />county population percentage change. Attachment C provides the population percentage <br />change for counties and their summed incorporated areas. The population percentage change <br />data excludes federal and state institutionalized populations and military populations. <br />Population Percent Change for Special Districts <br />Some special districts must establish an annual appropriations limit. California Revenue and <br />Taxation Code section 2228 provides additional information regarding the appropriations limit. <br />Article XIII B, section 9(C) of the California Constitution exempts certain special districts from the <br />appropriations limit calculation mandate. The code section and the California Constitution can <br />be accessed at the following website: httl2://Ieainfo.leaislature.ca.aov/faces/codes.xhtml. <br />Special districts required by law to calculate their appropriations limit must present the calculation <br />as part of their annual audit. Any questions special districts have on this requirement should be <br />directed to their county, district legal counsel, or the law itself. No state agency reviews the local <br />appropriations limits. <br />Population Certification <br />The population certification program applies only to cities and counties. California Revenue and <br />Taxation Code section 11005.6 mandates Finance to automatically certify any population <br />estimate that exceeds the current certified population with the State Controller's Office. Finance <br />will certify the higher estimate to the State Controller by June 1, 2020. <br />Please Note: The prior year's city population estimates may be revised. The per capita personal <br />income change is based on historical data. Given the stay-at-home orders due to COVID-19, <br />growth in the coming years may be substantially lower than recent trends. <br />If you have any questions regarding this data, please contact the Demographic Research Unit at <br />(916) 323-4086. <br />/s/ Keely Martin Bosler <br />KEELY MARTIN BOSLER <br />Director <br />Attachment <br />17 <br />