Orcas School District is in a precarious financial position.

In order to pay its bills and make payroll this summer, the board voted to borrow $250,000 from its capital fund to put into the general fund.

“I’m not happy about it,” said board member Scott Lancaster, who voted for the resolution along with fellow board members Chris Sutton and Janet Brownell. Jim Sullivan and Tony Ghazel voted against the inter-fund loan.

At the end of July, the balance in the general fund was $160,000. According to business manager Keith Whitaker, the loan of $250,000 is “just a precaution, to help manage our cash flow.” He said the district hasn’t had enough time this summer to complete billings. In addition, some grant money has not arrived and fund transfers from ASB have not yet gone into the general fund.

Examples of invoices the school sends to outside organizations are transportation and occupational therapist services to other districts, transportation for Camp Orkila during the summer months, and grant and consortium funds from various local and state programs.

“I’m concerned that you’re not caught up,” Ghazel said at the board meeting. “This is not anticipated. I did not know this was coming.”

In the past, the school borrowed money from the county when in this kind of financial situation, but opted not to this time.

After the inter-fund transfer, the capital projects fund has around $450,000 plus a $900,000 grant and $100,000 in community donations for the elementary school repairs.

Whitaker says the district will pay back the $250,000 loan at the end of September.

“This is a position that we don’t want to find ourselves in, but it’s going to be rectified,” Brownell said.