Faced with a $2.9 million deficit, the number crunching is underway in the Tamaqua Area School District.

A 1.2-mill increase appeared to be a strong possibility after the school board reviewed the 2017-18 preliminary general fund budget on Tuesday.District business manager Connie Ligenza said revenue is at $28,607,481, while expenses are at $31,515,640. She said the district has $705,128 in its reserve.That leaves a $2,908,159 shortfall, said Ligenza, who added that 1.2 mills is the highest real estate taxes can be raised per the Act I index.She said 1 mill will generate about $331,426 for the district in the 2017-18 school year.In December, the board agreed not to increase taxes above the Act I index of 3.4 percent, which equates to 1.2 mills, or about $362,212 in tax revenue.If the board were to approve the budget as it stands now with the proposed increase, it would raise the millage rate from 35.38 to 36.58 mills.For a homeowner with a home valued at $100,000, which would be assessed at $50,000, they would pay about $60 more to the district in property taxes.Ligenza said the driving factors behind the proposed increase are the employer contribution rate for the Public School Employees Retirement System, cyber charter school tuition and capital projects.“We rob from our fund balance every year,” board President Larry Wittig said. “We can’t do it anymore. Everyone’s in the same boat. It’s an exercise in futility.”Superintendent Ray Kinder said the district hasn’t been spending beyond its means.“We’re doing the best we can,” Kinder said. “This board has done exactly what the people have wanted.”Wittig said he doesn’t believe the board “should alter our behavior.”“Why should we inflict pain on the student body when there’s no end game; nothing that we do can fix it,” he said. “I think we do business as we have.”The board also discussed the final phase of the high school roof project, which would cost $438,216.Chief Operations Officer Ken Dunkelberger said the roof is in need of repair.“It’s old, it leaks,” Dunkelberger said. “It’s definitely leaking.”If approved, that project would be paid for out of the 2017-18 budget.The board will next discuss the budget at its committee meeting scheduled for 7 p.m. April 11.In June, the board approved this year’s spending plan with a 1.09-mill increase in the property tax rate.That decision increased the district’s millage rate from 34.29 to 35.38 mills, and called for a homeowner with a home valued at $100,000, which would be assessed at $50,000, to pay $55 more to the district in property taxes.The final budget left the district with a $2.12 million deficit, meaning it had to use $1,923,000 from its fund balance to balance the budget.Ligenza said the reason for the increase was due primarily to the capital needs/improvements of its buildings on the board-approved list of additional items.