Sacramento unveils $1.6 billion FY‑26 proposed budget; $62.2 million gap closed with one‑time moves and program reductions

The Sacramento City Council on Tuesday received a detailed overview of the city manager’s proposed fiscal year 2025–26 budget, a $1.6 billion all‑funds plan that staff said closes a $62,200,000 funding gap using a mix of one‑time funds, revenue adjustments and targeted service reductions.

In a presentation to the council, Marthala Santizo, budget manager, said the “fiscal year 26 proposed budget totals 1,600,000,000.0 for all funds and 847,000,000 for the general fund.” Pete Coleto, the city’s finance director, told the council staff had closed the gap presented in February: “we closed that $62,200,000 funding gap.”

Why it matters: The proposal keeps core services running while relying on a substantial amount of one‑time solutions and vacancy savings that create continuing budget pressure in later years. Staff warned the plan improves the near‑term picture but does not eliminate a recurring structural deficit that will reappear in fiscal 2027 unless new revenues or deeper ongoing cuts are adopted.

Most important facts - Total proposed budget: $1.6 billion (all funds); general fund $847 million (Marthala Santizo). - Gap closed: $62.2 million; roughly half of the solutions are one‑time (Pete Coleto). - Ongoing reductions/strategies include vacancy eliminations, fee adjustments and program realignments; staff said about 486.3 FTEs were proposed across all strategies and the proposal currently impacts roughly 7 filled positions to be eliminated among those items noted as filled (Marthala Santizo, Pete…