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SACRAMENTO — San Mateo County leaders warned state lawmakers Thursday that a decades-old funding mechanism is depriving the county of hundreds of millions of dollars needed to sustain public safety, housing and other core services.
Local officials said the state’s current payment structure has already left San Mateo County and its 20 cities short of approximately $157 million over the past two fiscal years, with projected losses expected to exceed $1 billion over the next decade, unless the state acts.
Appearing before the California State Senate Budget Subcommittee on State Administration and General Government, State Senator Josh Becker, Supervisor Jackie Speier and other local leaders urged lawmakers to restore the funding and establish a permanent solution.
“We are one of the economic engines of the state,” Becker said, noting San Mateo County alone generates $203 billion annually in gross domestic product. “Yet year after year, the county must fight for funding that we are owed for crucial services. I am here today to advocate for every dollar our county is owed and push for a permanent fix so we can finally end this cycle of uncertainty.”
The dispute centers on replacement funding that counties and cities receive tied to a vehicle license fee reduction approved more than two decades ago. These replacement payments are sometimes referred to as "in-lieu VLF" or "VLF." While most counties continue receiving full replacement payments, San Mateo County requires annual state action to receive the full amount due.
Speier warned the consequences of continued shortfalls would be felt across county services.
“We’re talking about public safety being impacted. We’re talking about not being able to keep the homeless off the street. The County not providing services to children with mental illness,” Speier said after the testimony. “The vehicle license fee has always been the third most important source of funding for cities and counties.”
County leaders said they will continue pressing state lawmakers and the administration for a permanent fix during ongoing budget negotiations.
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