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Redwood City – San Mateo County accuses the State of California of withholding nearly $38 million owed to the County and its cities, money local leaders say is critical to health care, public safety and affordable housing.
In a lawsuit filed this week, the County says the State violated its own law and a 2004 budget compromise, shortchanging the County and cities from Daly City to East Palo Alto and threatening core local services.
“These funds are owed to San Mateo County and our 20 cities,” said County Executive Mike Callagy. “And instead of living up to its obligations, the State wants us to absorb the cost.”
At issue is what’s known as the Vehicle License Fee Adjustment Amount (VLFAA), a funding source the lawsuit says provides “critical services” to local residents.
“This year, the Legislature broke its promise,” the County alleges in the filing, saying local governments received only $76.5 million of $114.3 million owed – a nearly $38 million gap. The State’s initial budget proposal excluded San Mateo County’s funding entirely, but successful lobbying by the County and its legislative partners secured two-thirds of the total owed to support local services. Meanwhile, the State paid the full VLFAA to local jurisdictions in 55 other counties through the funding mechanism in the statute, without question.
“The State’s failure to provide full payment of the VLFAA to San Mateo County and its cities will cause serious and lasting harm to the County and the cities whose budgets require these funds to deliver public services to residents,” the suit states. “The loss of this required revenue will strain the County and cities’ budgets and will reduce funding for critical public services.”
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