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6.A. - Page 9 of 10 <br />May 2020 <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 <br />cost 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 <br />used in setting the fiscal year 2020-21 appropriation limit is: <br />Per Capita Personal Income <br />Fiscal Year Percentage change <br />(FY) over prior year <br />2020-21 3.73 <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 2020-21 <br />appropriation limit. <br />2020-21: <br />Per Capita Cost of Living Change = 3.73 percent <br />Population Change = 0.22 percent <br />Per Capita Cost of Living converted to a ratio <br />Population converted to a ratio: <br />Calculation of factor for FY 2020-21: <br />3.73 + 100 = 1.0373 <br />100 <br />0.22 + 100 = 1.0022 <br />100 <br />1.0373 x 1.0022 = 1.0396 <br />18 <br />