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State budget check flags the district for repeated deficit spending

Mill Valley School District · Jun 18, 2026

High-risk

What happened

Every California district runs its budget through a standard state checklist. Mill Valley's comes back with four items marked 'Not Met'. The one that matters is deficit spending: the district spent more than it took in during at least two of the last three years, by more than the state allows before it wants an explanation. The other three are forecasting flags — enrollment, state funding and other spending each came in outside the expected range.

Why it matters to families

These are the state's thresholds, not the district's own goals. Mill Valley still passes the savings test, so this is not a crisis and there is no risk of the county taking over. But it is the district's own paperwork saying the pattern has repeated — and repeated deficit spending is usually what comes before cuts.

The evidence

The Criteria and Standards summary in the adopted budget marks criterion 8, Deficit Spending, as not met, alongside enrollment, LCFF revenue and other expenditures. Criterion 10, Reserves, is marked met.

The source

2026-27 Budget Adoption — Jun 18, 2026

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