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May 2025 <br />Dear Fiscal Officer: <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, 2025, in <br />conjunction with a change in the cost of living, or price factor, to calculate their appropriations <br />limit for fiscal year 2025-26. 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 2025-26 appropriations limit. Attachment B provides the city and unincorporated <br />county population percentage change along with the population percentage change for <br />counties and their summed incorporated areas. The population percentage change data <br />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: http://leginfo.legislature.ca.gov/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, 2025. <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. <br />If you have any questions regarding this data, please contact the Demographic Research Unit at <br />(916) 323-4086. <br />JOE STEPHENSHAW <br />Director <br />By: <br />ERIKA LI <br />Chief Deputy Director <br />Attachment <br />6.A. - Page 8 of 12 <br />17