It is the $2 million question facing Wareham.

The combined 2012 budgets prepared by the Town Administrator and the School Department total at least $2 million more than projected 2012 revenue. And, unlike the U.S. government, Wareham cannot print money.

In an attempt to close the gap between proposed spending and projected revenue without pitting school against town on the floor of April's Town Meeting, town officials have formed an "ad hoc" committee to attempt to craft a compromise budget. It met for the first time on January 28 and members acknowledged the tough work ahead of them.

"What it really comes down to is that the people at the table want to work together," Finance Committee member and ad hoc participant Frank Heath said at the meeting, adding that the committee formed "to discuss in a small group what was impossible to discuss in a large group."

Superintendent Dr. Barry Rabinovitch says the School Department needs roughly $2 million more than it received this year from the town to provide all of the services it currently provides, due to the lack of federal and state "stimulus" funding, and the need to fund new supplies and programs to help close an "achievement gap" between the performance of Wareham students and state averages.

The School Department's proposed budget is "not pie in the sky," School Committee Chair Cliff Sylvia said during the committee's January 27 meeting. "We recognize reality, but this is a basic-needs budget. ... I am of the mindset that if there are cuts in these numbers, there's going to be pain involved."

The state will be of little or no help in filling the gap. The town is dealing with a reduction of roughly $121,000 in unrestricted state aid for next year, according Governor Deval Patrick's proposed state budget. The town could also see reductions in veterans' benefits and urban renewal projects.

"The bottom line is, we knew there would be cuts," said State Rep. Susan Williams Gifford (R-Wareham). "I always tell the town, don't base your financial future on the governor's budget when the House budget will more closely resemble the numbers."

Town Administrator Mark Andrews did not return phone calls seeking comment about the budget.

State Sen. Marc Pacheco (D-Taunton) said he was "very much opposed" to the proposed cuts in state aid. "Local government can only deal with cuts in one way," Pacheco said. "When the state makes cuts, local government has no choice than to make cuts."

State budget documents indicate that Wareham could actually see an approximately $65,000 increase in state Chapter 70 aid, which provides the bulk of funding to schools. But the increase will not be enough to balance the budget.

"There is a serious problem," School Committee member Geoff Swett said. "There's no question in my mind that the $2 million is just too big of a nut for this to be solved without some cuts."

The other members of the ad hoc committee are Town Administrator Mark Andrews, Superintendent Dr. Barry Rabinovitch, Board of Selectmen members Brenda Eckstrom and Cara Winslow, School Committee members Geoff Swett and Rhonda Veugen, and Finance Committee Chair Donna Bronk.

Town Accountant Elizabeth Zaleski will also participate in the meetings to provide budgetary information. She is not a voting member, however.

The ad hoc committee will attempt to meet at various times at different locations, in an effort to allow residents with varying schedules to attend. It will next meet on Friday, February 4 at 10 a.m. in the Multi-Service Center second floor conference room. It will then meet on Friday, February 11 at 10 a.m. in the Wareham Middle School auditorium.