The Gann Spending Limitation Initiative, Article XIII B of the California Constitution, was adopted by voters as Proposition 4 in June 1979 and later modified by Proposition 111 in June 1990. It requires the city to annually adopt a resolution setting an appropriations limit for the upcoming fiscal year.

The Gann Spending Limitation was intended to provide public control of government spending and taxation. The appropriations limit establishes the maximum amount of tax proceeds that may be appropriated each fiscal year. The limit is adjusted annually based on population and inflation factors provided by the California Department of Finance.