The Windsor-Essex Catholic District School Board is now registering a surplus.
The board was projecting a deficit of more than $2 million for the 2012-13 fiscal year. That has changed to a surplus of $5.4 million.
There are several reasons for the improvement, including cost-cutting measures and higher enrolment.
Mario Iatonna, superintendent of corporate services, said a reduction in retirement benefits was most significant. That cut saved the board $4.7 million.
Iatonna also said the board is now in a position to register surpluses for the next four years.
"It gives the board more flexibility with respect to programming and the board will not have to look at reductions in programming staffing moving forward," he said.
Board chair Barb Holland said she was "speechless" when she heard the news.
"I's something you hope for, something you work for," she said. "But to accomplish it is quite something."
The board's annual budget is around $250 million.