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Assembly Member Diane Papen warns of state budget pressures and vehicle license fee shortfalls affecting San Carlos
Summary
Assembly Member Diane Papen told the City Council that California’s 2024–25 budget pressures and a large vehicle license fee (VLF) backfill shortfall are squeezing local funding and complicating planning; she reviewed recent legislation she sponsored and urged local creativity on revenue choices.
Assembly Member Diane Papen told the San Carlos City Council on Nov. 10 that state budget strains and a widening vehicle license fee shortfall are reducing predictable revenue for counties and cities.
Papen said the 2024–25 cycle produced a multi‑billion dollar shortfall statewide and that San Mateo County’s share of the vehicle license fee gap was unusually large this year. "The shortfall was 114 million," she said, noting that the county received roughly two‑thirds of the anticipated backfill this year, reducing city shares and complicating local budgeting.
That loss, Papen added, ripples through local health and human‑services funding and makes multiyear planning difficult: backfill payments arrive on a two‑year cadence and the size of future…
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