BIDDEFORD — Biddeford voters rejected the proposed school budget for the 2013 fiscal year, which began July 1, for the second time in voting Thursday, sending school officials back to the drawing board once again.

Of the 1,000 votes cast, 553 people voted against the $32.6 million budget, with 446 in favor. Of those, 640 said the budget was too high and 263 said it was too low.

On June 26, the referendum on the school budget failed for the first time. That vote was 445-208; at that time, 413 voters favored lowering the budget, with 27 voting in favor of an increase

Tuesday’s outcome “certainly presents a challenge,” said Superintendent of Schools Jeremy Ray, who came on board in Biddeford July 1. But he said by working with the community, he believes an acceptable outcome can eventually be reached.

In response to the first vote, through a combination of reducing expenses and increasing revenue, the city council approved a budget that was presented to the public, which was $400,000 less than the budget residents voted down in June.

Now Ray and his administrative staff must take another look at education expenses and figure out how to further pare those down.

We will look for “a direction that will have the least impact on students,” said Ray, but noted that a further-reduced budget “will have an impact on students.”

Although some vacant positions would remain vacant under the budget that failed Tuesday, no positions that were currently filled would have been eliminated.

Ray said a further-reduced budget could require the elimination of some current staff.

However, he said, by law teachers must be given a 90-day notice before they are terminated. So salary and health benefits as well as possible unemployment benefits must be factored into the budget.

“I’m surprised and not surprised” about the budget’s failure to pass, said Mayor Alan Casavant.

“A lot of people are really being affected by the economy,” he said, “and the specter of tax increases is really scary to them.”

The problem, said Casavant, is trying to find a balance of cutting enough that is acceptable to the public but not too much that would cause a significant increase in class sizes.

City and school staff will meet over the next several days to determine how to address the school budget, he said.

Casavant said the city and school department will try to work more closely together in the future to try to increase efficiencies and save money, but that is a long-term approach and can’t happen immediately.

Casavant blames state government for part of the problem because of the continuous cuts being made in the state budget and more costs being passed down to the local level.

Communities cannot continue to absorb costs that were previously picked up by the state, he said.

Until the public affirms a new budget, the school department is operating on the budget the council approved Aug. 2, in accordance with state law.

However, said Ray, the school department is not spending at that level because of the uncertainty of what the new budget will be.

Another vote will probably take place in September. According to state law, the public must continue to vote until they pass a school budget.

Ray said he hopes to get more public involvement in the budget process.

He said he believes the economy is a major factor in why residents have twice voted down the school budget. The neighboring communities of Saco, Dayton and Old Orchard Beach have also rejected their Regional School Unit 23 budget twice.

Also, he noted, other than last year’s property tax increase to pay for a bond for the high school renovation, there hasn’t been an increase in Biddeford’s property tax rate for several years. Voters may be reacting to the anticipated tax rate increase that will occur this year.

“It will be a challenge, but we will get through it,” said Ray.

— Staff Writer Dina Mendros can be contacted at 282-1535, Ext. 324 or dmendros@journaltribune.com.