"San Mateo County in a lawsuit filed this week claims the State of California shorted it and its 20 cities $38 million in funds distributed annually under a decades-old deal involving vehicle-license fees that is now enshrined in law. California's unprecedented raid on the funding stream deprived San Mateo County and cities from East Palo Alto to Daly City of critical funds for serving residents, while giving a windfall to the state, the lawsuit filed Monday in San Francisco County Superior Court claimed."
"The lawsuit accuses California of breaking a legal requirement to provide the funding, and seeks a court order mandating payment of the $38 million, plus unspecified damages. Named as defendants are the State of California along with state Finance Department Director Joe Stephenshaw and State Controller Malia Cohen. A spokesperson for the Finance Department said the department had not seen the lawsuit yet and couldn't comment on it."
San Mateo County filed a lawsuit claiming the State of California shorted it and 20 cities $38 million in annual funds tied to a decades-old vehicle-license fee compensation law. The complaint alleges a state diversion of the funding stream that deprived cities from East Palo Alto to Daly City of critical service dollars while benefiting the state. The suit seeks a court order requiring payment of $38 million plus unspecified damages and names the State of California, Finance Department Director Joe Stephenshaw, and State Controller Malia Cohen as defendants. The dispute centers on a 2004 compensation formula that allocates about 60% of regional compensatory funds to San Mateo County.
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