The Tisbury school building project comes up for a pivotal decision in two weeks, when town voters will be asked to approve funding for the initial phase of the project.

In late January school leaders learned from the Massachusetts School Building Authority that the school had advanced to the next step of a grant process that is expected to lead to funding and planning assistance for a new school. Out of 96 schools that applied, eight were accepted in this round.

The red brick school situated a few blocks from Main street Vineyard Haven was built in 1929 and has not seen a significant upgrade in two decades. The K through eight school is known for its academic excellence.

A 19-member school building committee that will collaborate with the MSBA held its first meeting Tuesday, followed by a PTO meeting and tour of the school.

At the annual town meeting April 12, voters will be asked to spend $825,000 for a feasibility study, schematic design and site and environmental testing for the new school. The estimated cost was developed based on projects of similar scale in Bourne and Hanover, with an added 10 per cent for the so-called Island factor.

The feasibility study is considered a crucial first step for the town in developing plans to upgrade the elementary school.

The article needs a two-thirds majority on the town meeting floor to pass and also must be approved in the ballot box April 26 where voters will be asked to exempt the borrowing from the provisions of Proposition 2 1/2.

The feasibility study and schematic design will outline the type of design, location and estimated cost. Whether to rebuild or relocate the school remains be decided, with guidance from the school building authority.

“Tisbury is a small town — there are limited options for where it can be,” school principal John Custer said at the meeting.

The town will be eligible for reimbursement from the state for part of the cost of the project; currently reimbursement is pegged at 41.26 per cent, but that number could go up, Mr. Custer said. The percentage would increase for features such as an environmentally-friendly design.

The Tisbury School is the oldest elementary school building on the Island. The gymnasium was built in 1938. The last major addition was built in the 1990s and included a library, two kindergarten classrooms and two science classrooms. But the primary issue with the school is space and not age, Mr. Custer said, noting that the building is structurally sound.

Overcrowding at the school has been well documented. Five lunch periods are needed to accommodate all 315 students in the eight-table lunch room. The gymnasium doubles as a classroom when needed. Language arts, special education, technology and science spaces all need upgrades, Mr. Custer said.

“Competition for space creates scheduling challenges,” he said. “Consider two different teachers working with fifth graders and eighth graders trying to teach at the same time . . . it’s just difficult.”

Two modular units leased in 2002 for temporary space needs are now owned by the school.

“We could not function without that space,” Mr. Custer said. “It’s not suitable, but it’s what we have right now.”

HVAC and electrical systems are becoming increasingly difficult to maintain, Mr. Custer said.

On Tusday Mr. Custer urged the PTO to help get out the vote at town meeting.

“1930 — 2016, Tisbury doesn’t build a school very often,” he said.