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Beacuse of California's 'Gann limit,' taxpayers get payday

California Legislature
Posted at 5:28 PM, May 10, 2021
and last updated 2021-05-10 20:28:04-04

SACRAMENTO, Calif. (AP) — California Gov. Gavin Newsom's proposal to give money back to taxpayers is rooted in a 1979 spending law that requires the government to give money to the taxpayers once appropriations reach a certain limit.

The threshold has only been exceeded once — in 1987.

Monday, the Newsom administration estimated the state would be $16 billion past the limit that's named after Paul Gann, a conservative political activist who campaigned for the law.

Newsom likely would have proposed the spending regardless of the limit. But his administration says the proposal satisfies the law's requirements.

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