In another sign of its financial struggles, the Kelso School District may dip into its capital project fund this month to find money to meet payroll.

It would be the first time in at least 14 years the district would borrow from the capital account to meet ongoing operational costs. The capital account contains money for building and facilities expansions and upgrades.

Tax revenues typically are slow to arrive in March but tend to pick up again in April and May, said Jim Biwer, who oversees Kelso School District’s business office. He expects the loan would be returned, with interest, to capital funds later this spring.

“This is a big payroll month for us, and it’s not a huge revenue month,” Biwer said. “I knew we would be coming close to not having enough cash to not meet our payments.”

This would be the first time since Biwer joined the district in 1995 the district has borrowed from the capital fund, which now contains about $100,000, he said. It’s a sign of tough economic times for the cash-strapped district, which is struggling to balance its 2009-2010 budget.

Biwer won’t know until the district completes its payroll on March 25 whether the district will need to borrow any of the capital fund money.

Biwer also approached the Cowlitz County Treasurer’s office about taking out a loan if there isn’t enough money in the capital projects fund, he said.

“I don’t think it will come to that. If we do go over any, I think we’ll have enough in capital projects,” Biwer said.

By law, the school district must repay money into its capital projects fund — including interest the money would have earned while kept in the account, Biwer said.