Tamaqua Area School District faces a $3 million budget deficit for the coming school year.

Next week the school board will consider a proposed budget with a tax increase. School members say they will reduce or eliminate the proposed increase before the June 30 deadline for districts to pass their final 2022-23 budgets.

“We need to revisit some cuts,” said Larry Wittig, Tamaqua school board president.

The board’s finance committee voted Tuesday night to approve a proposed general fund budget with $39.9 million in expenses. It includes a tax increase of 1.92 mills, or 4.5 percent.

With estimated revenue of $36.8 million in the budget, the district would have to use its entire $3 million fund balance to cover expenses. With the proposed tax increase, the district would end the 2022-23 school year with $1.34 million in its reserves.

Wittig said during Tuesday’s committee meeting that he supports cuts to help reduce the tax increase, and leave the district with a larger fund balance.

Administrators said that there are few areas left to cut in the budget. Superintendent Ray Kinder Jr. said the district’s current staffing levels can’t be reduced without pushing some class sizes over 30 students.

“The place you save the vast majority of money in your budget is people and buildings. You’re not going to get rid of another building so that means it would be people,” Kinder said.

Kinder said the only new teaching positions are ones required as a condition of the district receiving federal funds from the American Rescue Plan.

The district got over $3.5 million in ARP funds, but it will go toward capital projects. Administrators and board members agree that they don’t want to balance the budget on one-time money.

Wittig suggested the district look at cutting programs to help reduce the deficit. He said some Advanced Placement courses may be redundant with the district’s dual-enrollment agreement with LCCC. Kinder said eliminating the courses wouldn’t create much savings.

The adoption of the proposed budget will be on the budget when school board meets next Tuesday at 7:30 p.m. in the Middle School. School districts have until June 30 to pass final budgets.