B.C. Education Minister Margaret MacDiarmid says some school districts may be able to borrow cash from the province to cover funding shortfalls. (CBC)B.C.'s education minister is hinting that some school districts may be allowed to borrow money this year to balance their budgets after widespread funding cuts.

School districts across B.C. learned earlier this week that $110 million in annual facilities grants, which they use to maintain and upgrade property, has been cancelled as the government struggles to rein in a $2.8-billion deficit.

But many districts have already spent the money they expected to receive for repair and renovation work this summer, while others have been forced to postpone important repair work.

Normally, school districts are not legally permitted to run deficit budgets or borrow money, but Education Minister Margaret MacDiarmid suggested Wednesday morning some school districts will be allowed to take out loans this year.

"We have to look at each district separately. Occasionally, districts are allowed to borrow money, and that is a possibility," said the minister.

"I know that some districts have already contacted us and said we are reworking our budget."

Tasha Schollen, a senior public affairs officer with the ministry later confirmed that some school districts may be allowed to secure bank loans in order to fund capital projects that might otherwise have been postponed, but the districts will still not be allowed to run deficit budgets this year.

Vancouver draws on reserve funds

Other districts will be able to draw upon reserve funds normally reserved for capital projects. One of those districts is Vancouver, which is dealing with a budget shortfall of nearly $15 million, much of which has already been spent.

School board vice-chairwoman Jane Bouey said Vancouver has already been given a temporary reprieve allowing the district to pull $7.4 million from a reserve fund, generated by the sale of real estate, to pay for maintenance work.

"As a result of that, we are able to do some of the roof replacements that we needed to do. We are going to be able to do some of the electrical mechanical upgrades where there is seismic work going on," said Bouey.

And while the district is still facing a budget shortfall, the last-minute reprieve has averted layoffs in Vancouver, she said.