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Short answers about the Vehicle License Fee shortfall. Select a question to show its answer.
In 2004 the State reduced vehicle license fees and committed to replacing that revenue every year for every county and city. San Mateo County and its cities are not receiving the full replacement amount. For FY 2025-26 the shortfall is $226 million.
The payment mechanism the State uses to deliver the replacement funds has become outdated in San Mateo County. Nearly every other county receives its full amount through the same mechanism.
$226 million for FY 2025-26 alone, and more than $1 billion by 2030 without full repayment and a permanent fix.
All 21: the County of San Mateo and all 20 cities and towns. The County's share for FY 2025-26 is $134.2 million (59 percent); the cities and towns share $91.6 million (41 percent).
Shelter and rental assistance, mental health care and crisis response, wildfire prevention, early literacy programs, libraries, parks, youth and senior programs, and road repairs.
They are working with the County's state legislators for full funding in the State budget and a permanent legislative fix, and informing elected officials, the Governor's office and the public.
The County, its cities and towns, Alpine County and Mono County previously filed legal action. It has since been withdrawn while they work with the Legislature on a permanent solution.