LAO report: The state appropriations limit | Orange County Breeze
The State Appropriations Limit Executive Summary The State Appropriations Limit (SAL) Likely to Limit Spending Growth in the Budget Year and Future Years SAL Will Be an Important Issue at May Revision. Proposition 4 (1979) established an appropriations limit on the state and most types of local governments. The appropriations limit is based on appropriations from tax revenue. If the state has revenues above the limit over two consecutive years, the State Constitution requires the state to split the excess between taxpayer rebates and additional spending on schools. In the Governor’s budget,...