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County legislative update flags $226M VLF shortfall and other state budget items

San Mateo County Board of Supervisors · August 11, 2026
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Summary

County legislative staff briefed supervisors on the 2026 state budget, federal developments, and a projected vehicle-license-fee shortfall (about $226M) that the board said will be a top priority for advocacy and a subject of an upcoming study session and press conference.

Chief legislative officer Connie Driscoll Juarez and legislative analyst Ellie Aguayo presented the county's third-quarter state and federal legislative update. The presentation reviewed the recently enacted 2026 State Budget Act and specific allocations affecting counties, then highlighted the county's new estimate that its vehicle-license-fee (VLF) shortfall for fiscal year 2025–26 is approximately $226 million, of which about $134 million is the county's share.

The staff briefing covered budget items with local implications — county in-lieu VLF allocations, HR 1 implementation support for Medi-Cal and CalFresh administration, one-time allocations for public hospitals, and increased VOCA funding — and noted the state deadline for legislative action (Aug. 31). "The amount that was actually due was 119,000,000 plus approximately 80,000,000 that is due from the past 2 prior fiscal years," staff said; supervisors responded by setting a VLF study session and a press conference to coordinate advocacy.