Appropriations Limit Adjustment.

APPROPRIATIONS LIMIT ADJUSTMENT. INITIATIVE CONSTITUTIONAL AMENDMENT. Constitution limits tax revenues state and local governments annually appropriate for expenditure: allows cost of living and population changes. Cost of living defined as lesser of change in US Consumer Price Index or per capita personal income; measure redefines as greater of change in California Consumer Price Index or per capita personal income. State population redefined: includes increases in K-12 or community college average daily attendance greater than state population growth. Local government population redefined: includes increases in residents and persons employed. Specifies motor vehicle and fuel taxes are fees excluded from appropriations limit. Summary of Legislative Analyst\u27s estimate of net state and local government fiscal impact: Change in the appropriations limit inflation adjustment will allow increased state appropriations of up to $700 million in 1988-89, and increasing amounts annually thereafter. Change in the population adjustment will allow further undetermined increase in state appropriations. State\u27s ability to appropriate additional funds as a result of increased state limit is dependent on receipt of sufficient revenue. Based on estimates contained in Governor\u27s Budget, state revenues will not be sufficient in 1988-89 to fund any additional appropriations allowed by this measure. In future years, economy\u27s performance will determine whether and to what extent state revenues will be available to fund such additional appropriations. Local government and school district appropriation limits will be increased by unknown but significant amounts. Change in the treatment of state transportation-related revenues would have no fiscal effect because of the limit adjustment formula