9. Why advocates need to know about the Gann limit with guest Scott Graves
The Gann limit hovers over the California capitol like an ominous cloud on an otherwise sunny day.
Despite massive tax revenues and a projected discretionary budget surplus of $20.6 billion (with a strong potential to exceed this amount by $15 billion), the state must abide by an arbitrary spending cap adopted over 40 years ago - the Gann limit. This limit severely restrains any new investment by the Governor and Legislature.
Budget advocacy is already very challenging. Gann ensures that advocates will battle a terrible headwind, especially for spending proposals that do not meet the narrow exclusions allowed by Gann.
Today I talk with Scott Graves, Research Director at the California Budget and Policy Center, a non-profit and non-partisan research group based in Sacramento. We break down the Gann limit and discuss what's at stake for advocates as they advance their FY 22-23 budget proposals.
We discuss:
01:59 - What is the Gann limit?
06:49 - What are the state's options for dealing with the Gann limit?
08:24 - What is infrastructure spending?
09:26 - What qualifies as emergency spending?
12:18 - What about reducing revenue?
13:24 - What does this mean for advocates?
16:54 - Wait, there's more: how Gann interacts with Prop 98 and Prop 2 is creating even bigger problems for advocates (and the Governor)
22:03 - The Gann limit will continue to be a problem for advocates after 2022
23:41 - How can we fix the Gann limit?
Learn more:
Q&A: How the Gann Limit Threatens Ongoing Investments for Californians (California Budget and Policy Center)
The Definition of Qualified Capital Outlay for the State Appropriations Limit (Legislative Analyst's Office)
Initial Comments on the State Appropriations Limit Proposal (Legislative Analyst's Office)
Hosted by Kristina Bas Hamilton, founder of KBH Advocacy.
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