San Mateo County, Cities Warn State Funding Shortfall Could Force Deep Cuts to Local Services

District 1 Supervisor Jackie Speier speaks about the Vehicle Licence Fee discrepancy

August 13, 2026

REDWOOD CITY – Elected officials from across San Mateo County on Thursday warned that a state funding shortfall projected to approach $226 million could force significant cuts to public safety, health care, libraries, parks, roads and other essential services unless California lawmakers agree to a permanent solution.

Speaking at a news conference outside County Center, County and city leaders joined police and fire chiefs, representatives from labor and health care organizations to describe what the growing Vehicle License Fee (VLF) replacement funding shortfall could mean for residents from Daly City to East Palo Alto.

“Let me tell you exactly what $134 million dollars in county cuts looks like. It means more than 600 critical public servants working at the county are on the chopping block. The very resources required to maintain our infrastructure, our resilience, and our community's fundamental quality of life will be stripped away,” Supervisor Ray Mueller said. “We are asking Sacramento to return the tax dollars we already paid. Today we renew our call to the Governor and the leaders of the legislature: uphold the promise CA made so many years ago and return our tax dollars to end this new annual dance with devastation for our cities and for our county.”

 

 

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