Raymond residents shot down the school budget Tuesday, sending School Board members back to the budget for a review that has to be quick while finding additional places to cut.

With the budget failing 517-435, school board members now have 10 days to review the budget and make additional cuts before holding a special town meeting. Following the town meeting, another referendum vote will have to be held within 10 days. The municipal budget approved at the town meeting was ratified at the polls, 563-390.

“It was a long night,” said School Board Chairwoman Teresa Sadak. “We’ll have to go at it again and see what changes we can make before we bring it back (to the voters.)”

The total education budget increased just over 1 percent from the current year, but because revenues fell by over 41 percent the town’s share of the budget jumped by almost $1 million to around $8 million. Most of the decrease in revenue came from the lack of surplus.

In the current budget, $660,000 from surplus was used to offset taxes. That surplus was not available this year. The school department also lost over $200,000 in state subsidy, due mostly to falling enrollment.

Selectman Mark Gendron said Wednesday that the recommendations made by the Budget/Finance Committee, which included $170,000 in additional cuts, should be followed now.

“I think they know what has to be done,” Gendron said of the School Board. “Whether that alone with be enough, I don’t know.”

Raymond School Superintendent Sandra Caldwell was starting to meet with administrators Wednesday morning to see where further cuts could be made, Sadak said. The School Board will set a meeting this week with the Budget/Finance Committee to discuss possible cuts, and the School Board has a regular meeting scheduled for Wednesday, June 17, in which the budget will be the main topic, Sadak said.

“It’s going to be a busy couple of days,” said Sadak. The areas of transportation, superintendent’s office and instruction are likely to be included in the conversation of possible cuts, but the entire budget is fair game, she said.

“I really think we have to look it all over again,” said Sadak.

The additional cuts recommended by the Budget/Finance Committee included $44,000 in savings generated by the capping of high school tuition rates. The cap was approved by voters but the corresponding savings was not taken out of the budget at town meeting.

“There’s $44,000 right there that they can start with,” said Rolf Olsen of the Budget/Finance Committee. “If they can find additional places to cut, all the better.”