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SMC Officials Say State Owes $157M In Unpaid Funds

County officials warn that without the owed revenue, essential services face devastating cuts.

SAN MATEO COUNTY, CA — San Mateo County officials and community leaders gathered Tuesday to demand the State of California immediately release $157 million in what county officials are claiming they are owed for Vehicle License Fee revenue.

SMC officials said that essential local services face devastating cuts, and that the county is potentially losing over $1 billion in funding over the next decade. This could mean closing eight shelters, cutting rental assistance for over 5,500 families and seniors, and reducing psychiatric services and early literacy programs, officials said.

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"Our message to Governor Newsom is clear: pay what's owed and pass a permanent legislative fix," said Supervisor President Noelia Corzo. "This isn't about asking for extra; it’s about getting what we're legally entitled to."

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This Bay Area County Sues State Claiming $38 Million Shortfall

Corzo and other officials claim San Mateo is one of three counties shortchanged by an outdated 2004 budget deal, unlike the other 55 counties that get their full VLF share.

"It is whether there are enough fire engines,” said Supervisor Jackie Speier. “It is the difference between shelter beds being available or not."

Fire Chief Dave Pucci cautioned that public safety and emergency response times will suffer.

While State Senator Josh Becker is pushing for a permanent fix and Governor Newsom has directed his Department of Finance to work with the County, all 20 San Mateo County cities have joined a legal action to recover the funds.

The fight continues, with the County's request set to be heard by the State Assembly Budget Subcommittee on April 21.

The Governor has until late June to finalize the budget.

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