In November of 1979, California voters passed Proposition 4 (Spirit of 13), which added Article XIIIB to the California Constitution. This Article establishes limits on the appropriation of proceeds of taxes. Proposition 4 establishes and defines annual appropriation limits on State and local governmental entities based on annual appropriations for the prior fiscal year, adjusted for changes in cost of living and population. Revenues received in excess of appropriations permitted by this measure are required to be returned by revision of tax rates or fee schedules within the next two subsequent fiscal years, and appropriation limits may be established or temporarily changed by the electorate. The legislation, which implemented Proposition 4 (Government Code section 7910), requires that a jurisdiction's governing body establish, by resolution, its appropriation limit for the following fiscal year no sooner than 15 days after documentation used to determine the limit is available to the public. Due to the documentation not being available until July 21, 2020, the appropriation limits were unable to be set until after the FY 2020-21 Budget was adopted. In the event the adopted budget is not compliant with the limit, the Board of Supervisors would be presented with budget adjustments. County of Butte appropriations are compliant with Proposition 4 limitations. The FY 2020-21 Proposition 4 Limit is $202,748,903 and the FY 2020-21 total adjusted appropriations subject to the limit is $53,801,422. The Auditor-Controller recommends the Board adopt two resolutions confirming Proposition 4 appropriation limit calculations for the County of Butte and all special districts under the control of the Board for FY 2020-21. (Auditor-Controller)