Term
Structural Deficit
Also known as: Recurring deficit, Ongoing imbalance
A budget shortfall that recurs because ongoing expenses exceed ongoing revenues — distinct from a one-time gap.
Filled in the short term by reserves but unsustainable. The May 2026 deck identified the FY27 $1.8M GF gap and noted Council 'may utilize reserves to help close the gap.'
In Menlo Park
FY 2026-27 General Fund proposed baseline gap: $2.5M ($2.8M projected with June 23 additions, $1.8M after proposed cuts).