VLF

Vehicle License Fee — a state-collected fee on cars that the state distributes back to cities, with a 'backfill' provision when state fees fell.

Decades ago California cut vehicle license fees and promised to backfill the lost revenue to cities from the state's general fund. That backfill has not always been fully delivered. In FY 2026-27 Menlo Park's VLF revenue is projected at $3.0M, with the state backfill revised to $0 — a $4.3M shortfall vs. earlier expectations. The backfill was excluded from California's May 14, 2026 budget revise; June 15, 2026 is the final state budget adoption deadline and the last opportunity for the state to restore it this cycle (see the budget calendar).

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