VLF projected shortfall has increased

VLF projected shortfall has increased

Published on August 17, 2026

The County of San Mateo recently learned that the ongoing Vehicle License Fee (VLF) revenue shortfall has become dramatically worse for this fiscal year with the projected shortfall growing from $119 million to $226 million countywide. For Menlo Park, the impact would be $5.4 million for this year, bringing the total of monies owed to $7.3 million for the last three fiscal years.

On Aug. 13, the County held a press conference and special meeting of the Board of Supervisors to address the VLF shortfall. City Manager Justin Murphy spoke at the meeting, along with city representatives from the County's 20 cities, and shared the potential devastating impacts if the State does not address the continued shortfall. In Menlo Park, up to a 9% reduction in staff could be possible.

Mayor Betsy Nash, City Councilmember Jeff Schmidt Chief Dave Norris, Administrative Services Director Brittany Mello, Public Works Director Azalea Mitch, Assistant to the City Manager/City Clerk Judi Herren and Assistant Administrative Services Director Fenny Lei joined City Manager Murphy to support Menlo Park's efforts to receive the full VLF funding.

To learn more about the VLF funding issue, please visit SMCFairFunding.org.

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