Measure E, a proposal to renew and increase the Ross Valley School District parcel tax, is leaning toward defeat.

With all precincts counted in the mail-in special election Tuesday, the measure had 3,290 yes votes, or about 60%, compared to 2,206 no votes. It needs two-thirds approval to pass.

The district said Wednesday that it is not ready to concede. The Marin County Elections Department will continue to count ballots received by mail for up to seven days, as long as they are postmarked by Election Day.

“We are eagerly awaiting the Friday election results,” said Rachel Litwack, president of the school district board. “We know many folks voted last-minute.”

Litwack issued “a heartfelt thank you to the campaign volunteers for their tremendous work on Measure E the past several months.”

“This was a huge undertaking by caring, dedicated folks who really want to make a long-lasting and positive impact for our kids and community,” she said.

Critics said it appeared that the timing was not right for Measure E.

“The Coalition of Sensible Taxpayers has long made clear its opposition to the use of low-turnout irregularly scheduled special elections as a way to pass taxes that do not have sufficient support,” Mimi Willard, the group’s president, said Wednesday.

“Additionally, our campaign emphasized that with so much economic uncertainty, now is simply not the time for a big tax increase,” she said. “Clearly our message resonated with voters.”

Willard suggested a better time would be the June 2026 primary elections. The district’s parcel tax expires in 2028.

Measure E called for replacing the flat tax with one based on square footage. The district said the square footage system is more equitable for owners of smaller homes or businesses, who would pay less than owners of large properties.

Measure E outlined an annual tax of 52 cents per square foot of the built area of a home or business for nine years. The revenue estimate is $7.8 million annually.

Thirty-two cents would replace the flat tax, while the rest would generate about $3 million to improve faculty pay and offset a $2.6 million budget deficit. The district has said it cannot offer teachers more pay within the current budget and parcel tax structure.

If Measure E fails, the district will need to cut programs for the 2025-26 school year, said Tyler Graff, the superintendent.

“The board will need to approve two more years of budget reductions, including eliminating the option for two electives at middle school, counseling services and tier II interventions for students who may be struggling, among other items,” Graff said. “In addition to that, we will likely need to freeze raises in the coming years.”

“Unfortunately, we are the lowest-funded district in the county, and we rely heavily on the parcel tax to supplement our teacher salaries,” he said. “The $3 million increase was the bare minimum we needed to keep pace with the bottom quartile of the county.”

The Ross Valley School District serves 1,680 students in four elementary schools and one middle school in Fairfax, San Anselmo and Sleepy Hollow. The district has 18,452 registered voters, according to the Marin County Elections Department.