Why do voters have to approve an increase in the budget ceiling?

In 1979, California voters approved Proposition 4, which limits the growth in state and local government spending financed from tax revenue to 1978-1979 levels with modest annual adjustments. Spending of tax proceeds above this “Gann Limit” must be approved by a simple majority vote of the electorate at least every four years. Since the Fire Tax was not in place when Belvedere’s Gann Limit was established, a vote to increase the ceiling is necessary to allow these proceeds to be spent.

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