Finance Committee advances FY26 budget recommendation, moves ‘parking‑lot’ items to Council

The Palo Alto City Council Finance Committee voted unanimously May 20 to forward a set of budget adjustments and placeholders — the committee’s so‑called "parking‑lot" items — to the full Council for inclusion in the final Fiscal Year 2026 budget deliberations on June 16.

The package the committee moved includes retaining a $6 million uncertainty reserve for FY26; a multi‑year balancing strategy that relies on a mix of one‑time and ongoing savings; placeholders for $3.2 million in deferred capital projects (the committee struck an earlier staff proposal to reallocate $1 million annually from Measure B local streets funding); and specific program recommendations such as funding for a single‑role ambulance in the Fire Department and increases to a nonprofit partnership work plan.

Why it matters: The Finance Committee’s recommendation narrows Council deliberations going into the June adoption by locking in several staff proposals and policy directions — in…