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.