§ 57120 Local Government Appropriations Limit

• •If a group decides to create a new local agency or change how one works, they must set a spending limit for that agency.
• •This spending limit must follow the rules from another part of the law (Sections 56811 or 56812).
• •This rule is extra—it doesn’t replace other rules they have to follow.

A small town votes to create a new fire department.

The town must decide how much money the new fire department can spend each year, following the state’s rules for setting spending limits.