All 20 cities in San Mateo County have joined the county in suing the state, accusing officials of withholding more than $38 million in promised funding and demanding the money be restored.

The lawsuit, originally filed in August in San Francisco, focuses on a state funding system that county officials say shortchanges only three counties: San Mateo, Alpine and Mono.

Under the system, San Mateo County is supposed to receive about 60% of the region’s compensation from vehicle license fees, with the remaining 40% distributed among its 20 cities. Local leaders say the withheld funds strain budgets that pay for health care, public safety and affordable housing.

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San Mateo County and its cities received $76.5 million of the roughly $114.3 million they were owed last year, le

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