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SACRAMENTO — Mayors, firefighters, union leaders, residents and advocates for survivors of domestic violence, homeless seniors and other vulnerable groups from San Mateo County attended a hearing in the state Capitol on April 28, to voice their support for the County’s request for full in-lieu VLF funding and a permanent solution to ensure these funds are provided going forward. These leaders also described the impacts to their communities if the state does not provide the required funding.
Local officials say the state’s payment mechanism for this funding has left the county and its 20 cities short $157 million over two fiscal years without State action, a figure projected to exceed $1 billion over the next decade without a permanent solution.
At the front of the room, facing a state Assembly budget subcommittee, local leaders laid out the stakes in blunt terms.
“Every county is dealing with cuts to healthcare and food due to HR1, but the additional loss of in-lieu VLF will hurt our most vulnerable residents exponentially,” said San Mateo County Board of Supervisors President Noelia Corzo, describing the potential loss of rental assistance for thousands of families and cuts to mental health care, food programs and veterans services.
“It’s money that is owed to us under an agreement from 2004 and the State is now reneging,” said Supervisor Jackie Speier, warning that the loss could erase roughly 18 percent of the County’s general fund and leave cities facing layoffs of police and firefighters. “It will be devastating for our county and its cities.”
At the center of the dispute is how the state ensures replacement funding promised in connection with a vehicle license fee it cut more than two decades ago.
Most counties still receive that replacement funding in full without State action. San Mateo County does not for reasons beyond its control. For years, the state has filled the gap with general fund dollars, which local officials say is required to fulfill the state’s obligations.
“For the past decade, the state has recognized this gap and stepped in with general fund support to close it. That backfill wasn’t a favor—it was the state standing by its commitment to our communities,” said Assemblymember Diane Papan, whose 21st District stretches from Brisbane to East Palo Alto.
Members of the county’s legislative delegation, including Papan, Assemblymember Marc Berman, D-23, and state Sens. Josh Becker, D-13, and Scott Wiener, D-11, have been working with local officials to restore the funding.
Local leaders are pursuing a two-part solution: securing full payment of the funds due for 2023-2025 in the current state budget and advancing a permanent legislative fix to ensure full funding without requiring State action in the future.
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