A majority of Cape Elizabeth town councilors appear to be willing to approve a school budget that exceeds a 3.4 percent spending cap.

However, councilors said they wouldn’t support the full 7 percent increase requested by the school board.

Councilors and school board members will meet to negotiate the final school budget Thursday, April 13, at 7:30 p.m. at Town Hall.

“Is there some room for movement? Yes. Is there a lot of room? No,” said Councilor Mike Mowles.

Four out of seven councilors agree there is a bit of wiggle room in the budget. Councilors Cynthia Dill, David Backer, Paul McKenney and Mowles said they would consider exceeding the cap, while councilors Anne Swift-Kayatta and Mary Ann Lynch said they want to hold the school department to the cap.

Councilor Carol Fritz did not return calls seeking comment for this story.

In the past two months, support from a disquieted public, fearful that the 3.4 percent spending cap compromised the quality of Cape’s schools, encouraged school administration to revise the first budget. Superintendent Alan Hawkins initial budget presented Feb. 27 abided by the council imposed spending cap, but also included equipment and staff cuts and professional development reductions.

More than 200 teachers, parents and students mobilized and persuaded the school board to fight the council cap. The final budget passed by the school board with a 7 percent increase – more than double the spending cap.

Two councilors are adamantly opposed to spending above the cap, based on their commitment to voters. Lynch and Swift-Kayatta are both resolved to deny spending over 3.4 percent.

“I gave my word and I plan to keep it,” said Swift-Kayatta.

Lynch said she realizes there’s no “fat” in the budget, but she said she does not favor spending over the cap. Cape’s schools are “excellent,” she said, and she is confident they will maintain their excellence under a 3.4 percent increase.

“I don’t support a budget that is growing at 100 percent of inflation,” said Lynch.

Lynch and other councilors made a promise to voters last year that in lieu of the Palesky initiative, a citizen proposal intent on limiting property taxes and local government could responsibly reign in spending. At the time, towns and cities feared the Palesky initiative – capping property taxes at 1 percent for every $1,000 of value – would destroy local services, including the schools.

Town governments across the state began imposing spending caps to persuade voters they could spend responsibly. “Taxpayers needed to know that we hear them, but Palesky is not the answer,” said Town Manager Mike McGovern. In Cape, voters rejected Palesky by a margin of 40 percent.

When instating the cap, the council created a provision for population increases. Prior to approving the revised budget, Superintendent Alan Hawkins and the school board planned to request an increase for population. Over two years, Hawkins said the population had increased by 40 students.

However, estimates for population project that next year’s enrollment will decrease by 30 students.

Some councilors are considering retroactively applying an increase over the cap for climbing population. In 2005, enrollment increased by 17 students and went up again in 2006 by 21 students. The school board was not compensated last year for the increase in enrollment. Instead, the school board and council limited spending to the cap, with the exception of $450,000 in voter approved debt for the high school project.

Chairman David Backer and Councilor Cynthia Dill agree that past years’ population increases are important factors in the current budget process. “The school hasn’t yet been compensated. Perhaps it’s valid to do that now,” Backer said.

Lynch and Swift-Kayatta disagree, both cited that the school board was offered an increase for population last year, which they declined.

Whether the school board declined the offer or not, said Dill, the town council is responsible for adequately funding for population increases. “I don’t understand why the budget wasn’t adjusted last year,” she said.

In her own research, Dill has found that compared to similar communities, Cape isn’t spending as much on their schools. “How much more do the schools need and how much can the town afford to spend?” she asked.

However, she said she realizes the need to restrain spending and doesn’t think the town can continue supporting 7 percent increases.

If the combined municipal ($8.3 million) and school budgets ($18.8 million) are adopted as proposed, property taxes will increase 62 cents for every $1,000 of property value. The proposed municipal budget abides by the 3.4 percent cap. If the council stood by the cap for both the school and municipal budget, the tax rate would increase by 18 cents per $1,000.

From 2002 to 2007, the school budget has increased by nearly 32 percent, where the municipal budget has increased about 19 percent, according to McGovern. Factoring out inflation, the school budget has grown 14 percent and the municipal budget 3 percent.

The initial school budget proposed eliminating a part-time social studies teacher, a full-time educational technician, a coach and two activities supervisors at the middle school; one special education teacher at the high school and two educational technicians at Pond Cove. These cuts totaled $219,000.

Other cuts included $70,000 for the middle school laptop program, and more than one-third of money for professional development, which included a $12,000 membership to the Casco Bay Educational Alliance. The furniture replacement budget was also cut.

I’m not interested in cutting programs, but I’m also not interested in increasing taxes, said Councilor Paul McKenney. Among McKenney’s top priorities are maintaining excellent schools and ensuring the tax increase doesn’t swell above the inflation rate.

The revised budget restored furniture and equipment replacement at $19,526; money to continue the middle school laptop program at $70,165; and increases for out of district for special-education tuition.

Several positions were added, including a half-time social worker at Pond Cove, a health teacher for Pond Cove, a two-fifths English position at the High school, a one-fifth math position at the high school, a half-time nurse for all schools, and two part-time technology positions. Increases for staffing total $145,475.

“I am concerned with a budget that increases positions at a time of declining enrollment,” said Lynch.