San Mateo County, California – The State of California is being sued by San Mateo County because local leaders allege Sacramento has holding back about $38 million that is needed to keep services running. A complaint filed in San Francisco Superior Court says the State broke a 20-year-old agreement, which puts public health, safety, and housing initiatives at risk.
The Vehicle License Fee Adjustment Amount (VLFAA) is at the heart of the disagreement. It is a source of financing that was formed in 2004 when counties and cities gave up some of their vehicle license fee earnings and local property taxes to help the State overcome a budget gap. In exchange, the State promised to keep providing replacement financing that would be linked to property tax growth. San Mateo officials say that promise has already been broken.
County Executive Mike Callagy said that the gap impacts all 20 cities in the county, from Daly City to East Palo Alto…