Felix and Gloeckler auditors say it was a result of revenues under budgeted.
At one point during the meeting, "No New McDowell" members began to argue with the board.
They demanded answers as to why there was a deficit and why $5 million dollars was transferred to the general fund out of capitol projects fund.
Board President Terry Scutella revealed Business Manager Linnea Lincoln knew about this transfer.
He says she was pressured by her boss Michael Golde.
Golde's resignation for health reasons was announced by the board back on January 29th.
Board member Mike Kobylka says Golde cast a web of deception on the board and more issues need to be corrected.