SCARBOROUGH — Voters on Tuesday rejected the town’s $42.7 million school budget, 2,408 votes against 1,822 in favor. The budget called for $47 million in school spending.

The school budget for fiscal 2018 called for an increase of almost 7.4 percent in school funding, or $2.9 million, over the current year’s $39.8 million budget. School revenues are down by 17.42 percent, primarily due to an expected $1.4 million loss in state subsidy. Expenditures are up 3.38 percent, driven by contractual obligations, including a new, three-year teacher contract.

The Town Council approved the school budget during its May 17 meeting.

Town and school officials will now have to work on another budget and the town will have to hold another school referendum.

In 2015, Scarborough residents rejected the budget twice.

Also Tuesday, residents approved the municipal referendum to replace the fueling station, 2,971 votes to 1,160.

The ballot question authorized the town to issue almost $700,000 in bonds to fund the replacement of the fuel station and move it to another portion of the public works facility at 20 Washington Ave.

The special referendum was the result of a Maine Department of Environmental Protection order requiring the town to replace the 1988 public works fuel station by 2018 and remove its underground storage tanks.