§ 40521 South Coast District Funding Limits

• •The south coast district can't raise county money by more than the California Consumer Price Index (CPI) or the increase in property tax money for the counties in the district, whichever is bigger.
• •If the federal or state government stops giving money to the district, the district can raise county money more than the usual limit if they vote to keep the programs that money was used for.
• •This rule is to make sure the district doesn't raise money too much without a good reason.

Imagine the south coast district wants to increase the money it gets from the counties by 5% this year.

First, they check the California Consumer Price Index (CPI) and see it went up by 2%. Then, they check the property tax money for the counties and see it went up by 4%. Since 4% is bigger than 2%, they can only increase the county money by up to 4%. If they try to increase it by 5%, that's not allowed unless they have a special reason, like the federal government stopped giving them money for a program.