Assembly Budget Subcommittee No. 5 on State Administration, Tuesday, April 28, 2026

28 April 2026

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Assembly Budget Subcommittee No. 5 on State Administration Di., 28. Apr. 2026 California State Assembly

35:04 - 36:49

Redner 1

Good afternoon. And welcome to the Assembly Budget Subcommittee five on state administration hearing today. Today, our hearing will focus on general state admin issues. We will have two items for vote only. Hear from Assembly Member Pappin and representatives of San Mateo County on their vehicle license fee funding, and hear several GovOps proposals and an update on Gen AI.

And finally, an update on middle mile as well as proposals on middle mile from the Department of Technology. Not on the agenda is a request from Assembly Member Ward to get an update from DGS on the Hillcrest DMV, which we'll do which we will do after issue number one. Housekeeping. This is an in person hearing with all panel panelists testifying in person. We will take questions from members of this subcommittee after each panel, and public comment will be taken at the end of the hearing and will be limited to thirty seconds.

If you are unable to attend this hearing in person, you may submit your comments via email to asmbudgetasm. Ca dot gov. And with that, we are going to welcome our first panelists who are already here with us. This will be on item number one. And this would be the fiscal letter technical adjustment.

Oh, sorry. Wrong one. Three. Sorry. Item number one, San Mateo's in the house.

36:49 - 36:52

Redner 2

Here we go. Madam chair, thank you very much.

36:54 - 36:58

Redner 1

You can wave wave. Everybody from San Mateo wave. There we go.

36:58 - 38:27

Redner 2

Thank you, madam chair. I appreciate that acknowledgment. Okay. We've got folks who come a long way. So, first of all, thank you for the opportunity to be heard.

We so appreciate it. You know, in 2004, then governor Art Schwarzenegger cut the VLF from two percent to point 65% of a vehicle's value. The state understood the magnitude of that decision and committed to hold local governments harmless to keep revenues whole as if the 2% rate still applied. But no policy is flawless, and the VLF backfill mechanism is no exception. The architects of that 2004 compromise didn't anticipate a county like San Mateo, where demographic and economic realities break the formula.

For the past decade, the state has recognized this flaw and stepped in with general fund dollars, to cover the BLF shortfall. Let me be clear. That backfill wasn't a favor. It was a state honoring its own commitment. And yet in the current budget proposal, which came out in January, that commitment disappears along with 18% of my county's budget.

For the last three years, I've come before this committee and told a more detailed version of this story. Today, I instead come with a very simple message. California, help us, help you. San Mateo County isn't asking for special treatment. We're asking you not to undercut one of your strongest partners.

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