San Mateo County and its cities are in a legal battle with the state over a key funding source, and South San Francisco leaders warn that the lack of reimbursement could lead to fire station closures, higher childcare fees and a cut to the library’s hours of operation.
San Mateo County has long struggled with the unique bureaucratic mechanisms that deploy what’s known as in-lieu vehicle license fee funding. A 2004 change in the distribution system of VLF, which comes from taxes on California vehicles, tied reimbursement to county property tax revenue and the county’s school districts.
But because the setup of San Mateo County’s existing educational revenue structures doesn’t qualify the county for the full in-lieu VLF amount, representatives are left to haggle for the money each year. More recently, the state has entirely removed the line item from its budget.
The county and its cities are suing the state for the $38 million it was owed from last year, and there are no plans to include the $119 million they’re owed for this upcoming fiscal year in the state revised budget. Not only does the city hope for reimbursement, but Assistant City Manager Rich Lee said officials are advocating for legislative fixes to the issue to avoid more devastating long-term fiscal impacts.
“We should not be surprised that the governor’s May revised budget will not include any funding for San Mateo County’s VLF funding shortfall. Again, that’s $157 million that we are owed, not just for two fiscal years ago, but now three fiscal years ago,” Lee said during a council meeting. “What we really need is a permanent legislative fix … the Department of Finance will not be presenting any legislative fix at least for the foreseeable future.”
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South San Francisco’s share is about $5 million annually, but according to a recent presentation, the figure will likely grow to $14 million each year by fiscal year 2032.
Lee said the loss of a critical revenue source would result in the closure of one of the city’s fire stations, elimination of the police department’s Community Outreach Team and School Liaison Officer programs, a 75% increase in preschool fees, a cutback on library hours and eliminating other recreational programs like the city’s popular Concert in the Park event. Response times for other services would also be affected.
“Illegal dumping would take longer for staff to respond to. We would have very limited staff to respond to traffic light maintenance,” Lee said.
One of the city’s top official priorities is to develop a strategic outreach and communication plan to prepare residents if services are downsized and keep putting pressure on state leaders for a fix.
“I think we need to start creating a solid plan so when the transition starts to happen … [with] new leadership and a new governor, this is top of mind,” Councilmember Eddie Flores said during the meeting.
Folks, don’t fall for the scare tactics. The VLF is related to school funding and not police or fire or childcare or libraries. These folks are attempting to expand the pain to other group when it is their failure to fiscally manage schools (and especially their ever-increasing salaries, pensions, and benefits) that is the issue. Where is the consolidation of schools or sales of school properties? Where is the decrease in school personnel, or their pensions and benefits? Vote NO on the inevitable plea for more of your money to transfer to school union personnel.
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Folks, don’t fall for the scare tactics. The VLF is related to school funding and not police or fire or childcare or libraries. These folks are attempting to expand the pain to other group when it is their failure to fiscally manage schools (and especially their ever-increasing salaries, pensions, and benefits) that is the issue. Where is the consolidation of schools or sales of school properties? Where is the decrease in school personnel, or their pensions and benefits? Vote NO on the inevitable plea for more of your money to transfer to school union personnel.
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Keep the discussion civilized. Absolutely NO personal attacks or insults directed toward writers, nor others who make comments.
Keep it clean. Please avoid obscene, vulgar, lewd, racist or sexually-oriented language.
Don't threaten. Threats of harming another person will not be tolerated.
Be truthful. Don't knowingly lie about anyone or anything.
Be proactive. Use the 'Report' link on each comment to let us know of abusive posts.
PLEASE TURN OFF YOUR CAPS LOCK.
Anyone violating these rules will be issued a warning. After the warning, comment privileges can be revoked.