This law says that both the state's and local governments' yearly spending cannot go over what was allowed last year. However, they can adjust for inflation and changes in the population. There are exceptions, but they are in this same article.

Every local government in California must have their yearly budget limit calculations checked during their yearly financial audit.

This law section deals with how excess government revenue is handled in California. If the state collects more money than it is allowed to spend in a year, it must do two things with this surplus. First, 50% of the extra revenue must be allocated to a special fund. Second, the other 50% should lead to tax cuts or fee reductions in the following two years. This applies both to the state and other government entities under similar circumstances.

This law section outlines how a government's spending limit, known as the appropriations limit, can be adjusted in various situations. If financial responsibility for services shifts between government entities, the new entity's spending cap increases while the old entity's decreases. If services move to private entities or funding sources change to user fees, then the government's spending limit decreases. In emergencies, declared by local legislative bodies or the Governor, governments can exceed their spending limits temporarily, but must offset this by reducing limits in the next three years. Emergency spending approved by two-thirds of the legislative body is not subject to the usual limits, especially in cases of severe disasters or threats.

This law regulates how a government entity in California can set or change its spending limit. The voters of that entity can decide to establish or adjust this limit, but they must follow legal voting procedures. Any change they make can only last up to four years after the last vote.

This law allows government entities to set up various types of financial funds, like emergency or retirement funds, as they see fit. If these funds are financed through tax revenue, they count as spending limits for that year. However, taking money out of these funds, spending the withdrawn money, or moving money between funds doesn't count as spending limits.

This section requires the California Legislature to create a state reserve fund that they consider necessary and reasonable. How much money goes into or is taken out of this fund must follow rules described in another part of the law known as Section 5 of the same Article.

This section states that if the California Legislature or a state agency requires local governments to start a new program or do more than usual, they must cover the costs. However, there are exceptions where the state doesn't have to pay. These exceptions include if the local agency asked for the mandate, if it involves a new crime law, or if it began before 1975.

For ongoing costs related to mandates recognized before the budget year, the state must either fully pay or suspend the mandate. Costs before fiscal year 2004-05 can be handled over multiple years. Local governments can't use property tax revenues to fund these state-mandated programs. Certain requirements involving employee rights or benefits are exempt from this payment rule.

If the state shifts financial burden for a program to local entities, it's considered a mandated program.

This law ensures that neither the state nor local governments are hindered by this Article in fulfilling their financial obligations related to both current and future bond debt.

This law section explains the rules for how government budgeting appropriations are limited in California. "Appropriations subject to limitation" refer to what's allowed to be spent from collected taxes by the state or local governments, excluding specific refunds and benefit payments. Local government entities also include certain state funds except those described in a specific section. "Proceeds of taxes" mean all tax income, extra charges, and investment income, unless it exceeds service costs, and it includes state funds for local governments minus exceptions.

"Local government" covers cities, counties, school districts, and other divisions. "Change in the cost of living" is generally about how personal income increases, which affects budget limits. Population changes affect budget calculations, accounting for attendance changes in schools. Debt service covers costs related to older and voter-approved debt. Each government entity has a set "appropriations limit," governing its allowable annual spending.

This law provides how these financial limits adjust yearly based on population and cost of living shifts, and specifies exclusions like debt and investment authorization funds.

This section outlines certain types of government spending that are not counted under 'appropriations subject to limitation.' These include spending on debt payments, costs mandated by courts or the federal government without room for discretion, and specific cases involving special districts. Additionally, funding that comes from higher taxes on fuel or commercial vehicle weight fees as well as capital outlay projects are also excluded from this limitation.

This law will start being enforced on the first day of the fiscal year after it is adopted.

This section states that starting from the fiscal year beginning July 1, 1990, each government entity's spending limit is based on their spending limit from the 1986-87 fiscal year. Adjustments can be made according to changes outlined in the current and previous sections.

If a court makes a final decision that changes which budget categories are included in the spending limit, the spending limit must be adjusted to reflect that decision.

Also, if any part of this law is found to be invalid or unconstitutional, the rest of it will still stay in effect.

This section basically says that money raised from the Cigarette and Tobacco Products Surtax Fund doesn't count toward budget limits for government entities. Also, there won't be any need to adjust these budget limits just because money moves in or out of this specific fund.

This law section states that money from the California Children and Families First Trust Fund is not counted when calculating a government agency's spending cap. Additionally, no changes to a government entity's spending limit are needed because of money moving to or from this fund. Also, the surtax from the California Children and Families First Act of 1998 isn't treated as general fund income for certain budgeting rules.

This section states that money coming from the California Healthcare, Research and Prevention Tobacco Tax Act of 2016 Fund doesn't count towards the spending limits set for government entities. This means any revenue from this Fund won't require adjustments to the spending limits of these entities.

This law specifies that government budgets are not limited by revenue from the Road Maintenance and Rehabilitation Account or other funds created by the Road Repair and Accountability Act of 2017. In simple terms, money for road repairs isn't counted toward budget caps, and budget limits don't need adjusting because of these specific funds.