GarageBand: Free multichannel recording software that comes on most consumer Macs.
Mics cost, but borrow if you can.
You can burn your own CD right out of Garage Band. You'd be amazed how good it can sound. Though pros scoff, some artists are actually using it to record.
Burn the CD out of GarageBand. Unless you're making a ton, burn 'em yourself, or have your fellow members burn a few each.
You really can do this for almost no money. You can also spend as much as you want.
You might want to find a hobbiest or semi-pro recordist through Craigslist and, again, not pend a fortune.
Have fun!