The school district spent more money than it expected last year, leaving it with a potential deficit for this year, secretary-treasurer Ken Campbell told school trustees last week.The district started the 2007-2008 year with a $700,000 surplus, Mr. Campbell said. The board planned to spend about $462,000 of that surplus over the year, he said, but ended up spending $653,000.The biggest budget problem was utilities, which gobbled up $91,000 more than expected, Mr. Campbell said. The board also spent more than budgeted on outdoor education, casual custodians, and housing.The board now has only $49,000 of its surplus left. With this year's budget calling for the district to spend $247,000 more than it will receive in revenues, that leaves a potential deficit of almost $200,000."We don't need to panic at this point," Mr. Campbell said. "We aren't taking any rash action."The potential deficit is small when compared to the district's overall annual budget of $10-million, he said.On the money-saving front, maintenance supervisor Paul Allen is leaving for a job in Vancouver and the board has decided not to replace him, Mr. Campbell said.The district has also entered a new custodial contract for the Sandspit school which will cost $78,000 over two years - a little bit less than the previous contract, he said.