The California Legislature has committed to working with San Mateo County and two other jurisdictions toward a fix for a Vehicle License Fee funding mechanism that is costing them hundreds of millions of dollars annually.
The commitment comes in AB 184, a state budget trailer bill that directs the Legislature to work collaboratively with San Mateo, Mono and Alpine counties, their cities and other affected jurisdictions to develop a solution beginning in fiscal year 2027-28.
The VLF shortfall in San Mateo County—home to 21 jurisdictions—has nearly doubled in a single year, growing from approximately $119 million in fiscal year 2024-25 to about $226 million in fiscal year 2025-26. County officials said the loss threatens funding for public safety, public health, mental health and other essential services.
San Mateo County Supervisor Jackie Speier said the legislative acknowledgment was welcome but insufficient. "Intent language does not restore a single dollar of funding to the communities that are owed it," she said. "There is no reason to wait for a solution."
The Legislature's commitment follows advocacy from local officials, labor unions and city representatives including state Assemblymembers Diane Papan and Marc Berman and Senator Josh Becker.