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County officials warn $119 million VLF shortfall will force cuts; ask San Carlos to join advocacy

San Carlos City Council · March 24, 2026
AI-Generated Content: All content on this page was generated by AI to highlight key points from the meeting. For complete details and context, we recommend watching the full video. so we can fix them.

Summary

San Mateo County leaders told the San Carlos City Council that a change in the vehicle-license-fee payment mechanism could remove about $1 billion from county revenues over 10 years and create a $119 million shortfall this year; they urged cities to join a county-led advocacy campaign and a press conference in Redwood City on April 7.

San Mateo County officials told the San Carlos City Council on March 23 that a mismatch in the state's vehicle-license-fee (VLF) payment mechanism has created a large funding shortfall that could force service cuts across the county.

County Manager Mike Hallagy said the change amounts to "the most significant taking by the state in San Mateo County history," and warned it "will result in over $1,000,000,000 being taken out of this county in the next 10 years." Assistant County Executive Justin Mates described how the current VLF payment mechanism is tied to school funding and said San Mateo County now…

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