Higher than expected enrollment is helping Richmond Public Schools avoid falling into a deficit.

Richmond reported 128 more students than expected on March 31, boosting total enrollment to 21,973 students in kindergarten through 12th grade, according to a report to the School Board.

The extra students should result in a $1.6 million boost in the state’s contribution, according to the report from Ralph L. Westbay, assistant superintendent for financial services. The state contribution previously had been projected at $121.7 million.

If all goes well, Mr. Westbay told the board at its April 21 meeting, revenues should exceed expenses by $13,470 when the current fiscal year ends June 30.

Total spending for the year is projected at $265.8 million.

Earlier this year, Mr. Westbay warned the board that it could face a $1.7 million shortfall. He said that along with the increase in revenue from the state, the school system is using savings from staff turnover and vacancies to cover areas where expenditures are over budget.

“Attempting to manage a budget that is inadequate from the onset and relying on staff turnover and vacancies to balance is not a best practice,” he told the board. “It is the only alternative, however, when appropriations are not sufficient and reserves are not allowed.”

Separately, the board ended its fight with the city over the ownership of a warehouse on Arlington Road near The Diamond.

The board voted 9-0 to deed the vacant building back to the city, which has been seeking to sell it to a private company.

That move is a big turnaround from last year when the board was so adamantly against the sale that the city gave up on obtaining the building and selling it to McKinnon and Harris Inc., a handcrafted aluminum furniture company.

School Board member Kimberly Gray, 2nd District, a leader in the fight to block the sale, said the decision means that City Council members “can no longer hold this over our head.”

Ms. Gray said the board had been heavily criticized for blocking the sale of unneeded property to a company that promised to create new jobs. “It’s time to move on,” she said.

She said that she also was swayed by the fact the city now expects the sale price to equal or top the assessed value of $1.7 million That would be at least $275,000 more than a previous offer she had opposed of $1.425 million.

Once the city sells the property, the proceeds would be turned over to the school system to use to improve buildings. The holdout seems to be resulting “in a higher price,” Ms. Gray said.