The Port Angeles School Board approved a balanced $34.8 million budget for fiscal 2002-03 Monday night.
But the board was told that the current budget, which ends Friday, will run $250,000 to $280,000 in the red.
Jim Jones, school district business and operations director, said the deficit will be covered by the reserve account.
In the new budget, $4.9 million in revenues will come from local taxes, $24 million will come from the state and $4.3 million will be derived from the federal government.
The balance will come from local non-tax funds and other sources.Earlier this year several public meetings and work sessions to reduce district spending were conducted by the School Board. The district managed to cut spending by $1.64 million.