Gann Limit

Annual Appropriations (Gann) Limit 
Pursuant to Article XIII-B of the State Constitution and Government Code (GC) section 7900 et seq., community college districts are required to compute an annual appropriations limit, commonly referred to as the Gann Limit.  The appropriations limit is adjusted annually for changes in price index, population, and other applicable factors.

Price Factor
GC section 7909 requires that the Department of Finance notify the California Community Colleges Chancellor’s Office by May 1 each year of the price factor to be used in establishing the appropriations limit.  The price factor is defined as the change in fourth quarter California per capita personal income.  The Department of Finance posts the annual notifications on their webpage under Forecasting>Demographics>Estimates>Price and Population Factors.

Notification if Appropriations Limit is Exceeded
GC section 7910 requires community college districts to annually secure the approval of their local governing boards of the proposed appropriations limit.  If a district anticipates exceeding its appropriations limit, the district can increase its appropriations limit by notifying the Department of Finance within 45 days of local board approval.  This notification allows the Department of Finance to transfer surplus state appropriations limit authority from the state to the district per GC section 7902.1(c).  Please provide the Chancellor’s Office a copy of any notification to the Department of Finance.

Report Requirement – Gann Limit Worksheet
GC section 7908(c) requires each community college district to report annually to the Chancellor of the California Community Colleges its appropriations limit, appropriations subject to limit, the amount of state aid apportionments and subventions included within the proceeds of taxes of the district, and amounts excluded from the appropriations subject to limit.  This information is to be reported on the Annual Financial and Budget Report, CCFS-311 Gann Appropriations Limit form.

Contact:  For questions about the Gann Limit, or if projected appropriations exceed the Gann Limit, please contact the Fiscal Standards and Accountability Unit at fiscalstandards@cccco.edu.  
Please complete the Gann Limit Worksheet as part of the process for developing the tentative budget for 2020-21. The price factor applicable to the 2020-21 appropriations limit is 3.73%.

The appropriations limit must be approved by the district's governing board. After board approval, keep the worksheet for later reference in reporting the Gann Limit information on the 2019-20 CCFS-311.