San Mateo County sues California, says $38M promised in 2004 budget deal never arrived

San Mateo County has filed a lawsuit against the state of California for allegedly withholding nearly $38 million in funding the county says it should have received from a decades-old budget deal.

The county asserted that the state violated a 2004 budget deal in which counties and cities agreed to give up a portion of vehicle licensing fees and local property taxes to help close the state budget deficit. To repay counties, the state Legislature guaranteed funding for school districts where property taxes alone do not cover school budget needs, according to the county.