CAPE ELIZABETH – The town faces a third school budget vote after voters defeated a second proposed 2008-2009 school budget July 22.

In a special validation referendum, the $19.9 million budget adopted by the Town Council on July 14 was narrowly defeated by a vote of 1,141 against to 1,097 in favor. The difference was 44 votes.

The budget would have increased school spending next year by 6 percent, and the tax rate by 6.7 percent.

In a second, advisory vote, the majority who answered the question, 1,158, said the adopted budget was too high. A total of 603 said it was too low.

Just six weeks earlier, on June 10, voters had defeated a $19.7 million budget by a margin of 1,891 against, and1,250 in favor. In a non-binding advisory question, the majority,1,638 voters, said they believed the budget was too low; 1,110 said it was too high. That budget would have increased school spending by 4.6 percent.

It is now up to the School Board to propose another budget, which will then be ratified or amended by Town Council and put to voters for a third time.

“Clearly, we need to go back to the drawing board and take a second look at the budget and see what we need to do to get a budget that is acceptable to the majority of the voters,” said School Board Vice Chairwoman Trish Brigham. “We do not have a plan as of yet because we have not met (since the vote).” Chairwoman Kathy Ray was out of town and could not be reached for comment.

Under state law, Cape schools will operate under the last budget approved by the school board – in this case, the 6 percent budget – until a budget is validated by voters. This allows the schools to raise fund to operate, but it may also mean that positions and programs need to be cut mid-year if a lower budget is ultimately passed.

Council Chairwoman Mary Ann Lynch said she will be aiming for a budget somewhere between the “too low” $19.7 million and “too high” $19.9 million.

“I think people clearly understood this time that this (a $19.9 million budget) equals a 6.7 percent tax increase, and people said, ‘No, too high,'” she said. “The voters have provided us with some bookends.”

Lynch said she understands the importance of getting an approved budget in place.

“I think we need to work as quickly as possible,” she said.

As of July 27, there were no school board meetings scheduled in the month of August.

The cost of opening the polls on July 22 was $2,054, said town manager Michael McGovern. This does not include an informational mailing sent to residents, at a cost of about $1,700, and the expense of mailing about 500 absentee ballots.