Parents fighting to save a rural Borders primary have been told the cost has risen from £1m to nearly £1.6m.
Last year they received a three-year deadline to raise funds for works at Newlands Primary near Blyth Bridge.
Otherwise, they were told the school would probably be merged with West Linton Primary four miles away.
The school board chairperson said she was confident the target could be met and the upgraded school might become a model for the rest of the region.
Karen Blissitt confirmed the costs of keeping Newlands open had increased significantly.
Finalised plans include nursery facilities at the school which have raised the price tag.
"We think it will work - now we have got to take it to Scottish Borders Council and see if they think it will work," she said.