The Middletown Board of Education inched closer Tuesday night to a solution that could give the district the ability to close a $10 million budget deficit and potentially keep three local schools from closing.

Board members passed a resolution allowing the district to file an application with the Commission of Education that would give the board the ability to increase expenditures by nearly $1.7 million. This means the board could raise taxes by up to 10.1%.

"You are only voting for the ability to go up to 10.1, you are not voting for the actual tax increase at this moment. That will come on April 30 when our final budget gets approved," Superintendent of School Jessica Alfone said during the meeting. "But if this is on the table and the board is debating that, by not doing it, you'll be limiting yourself into not being able to go up to that amount if the board chooses to do so."

The application to the Commission of Education must be submitted by April 14, Alfone said.

“Our goals have been, and will continue to be, keeping schools open, teachers in classrooms, and engaging with the Superintendent and School board on how to fix the budget shortfall," the district said in a statement to News 12. "We plan to maintain our lines of effort and hope everyone will agree on an equitable solution.”

The meeting started with public comment and some heated discussions between board members and members of the audience.

Following multiple meetings and public outcry, the district has been looking for alternatives to keep Leonardo Elementary, Navesink Elementary and Bayshore Middle schools from closing due to the budget gap. Last week, Middletown Mayor Tony Perry announced a plan to save the schools that would involve the district selling land back to the town and having the municipality share the cost involved with having police officers in schools.