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Daily Civic Brief

South San Francisco Faces $157 Million Vehicle License Fee Funding Shortfall

Lead: South San Francisco continues to grapple with a significant fiscal challenge tied to the Vehicle License Fee (VLF) funding crisis.

June 4, 2026 · Published June 5, 2026

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South San Francisco Faces $157 Million Vehicle License Fee Funding Shortfall

South San Francisco continues to grapple with a significant fiscal challenge tied to the Vehicle License Fee (VLF) funding crisis. This issue involves a longstanding dispute over "in-lieu VLF" replacement funds that counties and cities, including South San Francisco, receive following a state vehicle license fee reduction enacted over 20 years ago.