Proposition 4 the "Ghann Limit" amended the California Constitution to:

• Limit the growth in appropriations made by the state and individual local governments. The limit in the rate of growth is the percentage increase in the cost of living and the percentage increase in the state or local government's population.
• Require state and local governments to return any funds to taxpayers in excees of the amount appropriated for a given fiscal year.
• Require the state to reimburse local governments for the cost of complying with state mandates.

Because of the provisions of Proposition 4, in 1987, the state was forced to rebate $1.1 billion in excess revenue to taxpayers.

That rebate led the California Teachers Association to place Proposition 98 on the 1988 ballot. Proposition 98 puts a legal floor under school spending and requires that excess Gann Limit revenues go into education, rather than into rebates to taxpayers. Excess revenues above the 4% level continue to be rebated to taxpayers.

As Charter School enrollments continue to grow, Districts loose the ADA. Is CUSD attempting to increase its appropriation limits by an equal amount to the funds it is losing to charter school enrollment?

Source: Ballotpedia