San Mateo County, California – Every city in San Mateo County has agreed to support the county’s lawsuit against the State of California to get back about $38 million that was not paid. The County filed the complaint in August 2025, saying that the State had not paid the entire amount owed under a long-standing financing system that helps important local initiatives. Now that all 20 cities are supporting the legal case, the effort to get back the missing money is at its strongest point yet.
County authorities said that local governments should have received about $114.3 million in state-shared revenue this year. They only got $76.5 million, which was roughly $38 million less than they needed and expected. Communities usually utilize this money to pay for basic services like health care, public safety, and programs that help people find affordable homes. Last year, during budget talks, state lawmakers returned some of the cash. However, the relief only covered about two-thirds of the overall sum and was only for the current year. County authorities say that the upcoming state budget may leave out San Mateo County again.
Supervisor Lisa Gauthier said that the money that wasn’t sent to them comes at a time when local governments are already having trouble with their budgets…