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California Proposition 4, Government Spending 'Gann Limit' Initiative (1979)
| California Proposition 4 | |
|---|---|
 | |
| Election date November 6, 1979 | |
| Topic State and local government budgets, spending and finance | |
Status Approved | |
| Type Constitutional amendment | Origin Citizens |
California Proposition 4 was on the ballot as a legislatively referred constitutional amendment in California on November 6, 1979. It was approved.
A "yes" vote supported this ballot initiative to: *limit growth in state and local government spending financed from tax revenue and certain fee revenue to 1978‑1979 levels with an annual adjustment for changes in population and cost of living; * require that governments adjust tax rates or fee schedules to remit funds when the government spending limit is exceeded; and * require the state government to reimburse local governments the costs of complying with state mandates. |
A "no" vote opposed this ballot initiative, thus continuing to allow state and local government spending financed from tax revenue and certain fee revenue without any limits. |
Overview
Proposition 4, also known as the Gann Limit, was approved in 1979. Proposition 4 added Article XIII B to the California Constitution. Paul Gann sponsored the ballot initiative.[1]
Aftermath
Proposition 111 (1990)
In 1990, voters passed Proposition 111, which changed the population and cost-of-living standards in calculating permitted spending. According to the California Legislative Analyst’s Office, the changes "created more room for state and local appropriations." Proposition 111 required that excess revenues be determined over a two-year period rather than a single year. Proposition 111 also required that half of excess revenue be distributed to school programs, rather than tax refunds and rebates, under Proposition 98.[2]
Election results
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California Proposition 4 |
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|---|---|---|---|---|
| Result | Votes | Percentage | ||
|
|
2,580,720 | 74.33% | ||
| No | 891,157 | 25.67% | ||
Text of measure
Ballot title
The ballot title for Proposition 4 was as follows:
| “ | Limitation of Government Appropriations. Initiative Constitutional Amendment. | ” |
Ballot summary
The ballot summary for this measure was:
| “ | Establishes and defines annual appropriation limits on state and local governmental entities based on annual appropriations for prior fiscal year. Requires adjustments for changes in cost of living, population and other specified factors. Appropriation limits may be established or temporarily changed by electorate. Requires revenues received in excess of appropriations permitted by this measure to be returned by revision of tax rates or fee schedules within two fiscal years next following year excess created. With exceptions, provides for reimbursement of local governments for new programs or higher level of services mandated by state. | ” |
Full Text
The full text of this measure is available here.
Fiscal impact statement
The fiscal impact statement was as follows:
| “ |
Indeterminable. Financial impact of this measure will depend upon future actions of state and local governments with regard to appropriations that are not subject to the limitations of this measure.[3] |
” |
Path to the ballot
In California, the number of signatures required for an initiated constitutional amendment is equal to 8 percent of the votes cast at the preceding gubernatorial election. For initiated amendments filed in 1979, at least 553,790 valid signatures were required.
See also
External links
Footnotes
- ↑ California Secretary of State, "Official 1979 Voter Guide," accessed May 12, 2021
- ↑ Legislative Analyst’s Office, "Proposition 4," accessed May 12, 2021
- ↑ Note: This text is quoted verbatim from the original source. Any inconsistencies are attributable to the original source.
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State of California Sacramento (capital) |
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