The Cape Elizabeth Town Council appears divided on approving a $20 million school budget that would raise the town’s tax rate.

Councilors are scheduled to vote on the school budget at an April 30 meeting. Several, however, said they are not comfortable approving the proposed budget that would raise the tax rate by 11 cents to $17.55, an increase of 0.6 percent.

“I will probably vote against this,” said Anne Swift-Kayatta, town councilor and chairman of the finance committee. “I don’t think this is the time, in this economy, to be raising people’s taxes.”

In March, the Town Council was prepared to approve a school budget that did not raise taxes. The day before the vote, however, the state informed Superintendent Alan Hawkins that the Cape School Department was losing $504,000 in general purpose aid. Hawkins’ original budget didn’t calculate this loss.

Officials compensated for all but $161,000, which Hawkins added to the school budget and which is responsible for the tax rate increase.

The revised school budget proposes spending $20.2 million, 1.9 percent more than last year’s budget. In contrast, the municipal budget is at $8.5 million, a 3 percent decrease from last year.

“I think with this environment of recession, and that the municipal side has dug very deep, people may expect the schools to do the same thing,” Town Councilor David Backer said.

Not all councilors are convinced the school budget can be further pared.

Both Councilors Sara Lennon and David Sherman said they supported the .6 percent tax-rate increase and that the voters should get a chance to approve or strike down the budget in the May 12 referendum vote.

“I think the School Board has done a great job coming up with this budget and has already made deep cuts,” Lennon said. “I don’t really see where cutting it more would be possible … To spread the responsibility to all the folks in Cape Elizabeth with a little bit of tax increase strikes me as fair.”

Town councilors are not the only people in Cape divided over the budget.

Many residents who spoke at an April 13 public hearing regarding the school and municipal budgets were split on the .6 percent tax increase.

“Our schools are showing a decline,’ said Dan Fishbein. “Already Yarmouth is viewed as the district to move to for new residents coming to the area.”

Bill DeSena, representing the Cape grassroots group Cape For All, which advocates responsible spending by the town government and school department, said the School Department should strive for a zero percent increase in spending, not the 1.9 percent the budget proposes.

“We fully agree with everyone in this community that the No. 1 goal is to have great academics for our kids,” DeSena said. “I think where we differ is how you get there.”

Some residents and councilors said it appears the school budget debate could be as contentious as last year.

Last year the Town Council adopted a budget with a 4.6 percent tax increase that voters rejected. Voters also rejected a second budget, with a 6 percent increase, before eventually approving a budget with a 5.6 percent increase on Sept. 2.

Town Council Chairman James Rowe proposed last year’s compromise. He said he has yet to feel comfortable taking a stance on this year’s budget, but ultimately it’s up to the voters to decide.

‘It’s in the interest of bringing people together in this town, which I think should be our priority right now,” he said.

The wording of the May 12 referendum question will be the same as last year’s and will read; “Do you favor approving the Town of Cape Elizabeth school budget for the upcoming school year that was adopted at the latest school budget meeting of the Town Council?”

The referendum will include an advisory question asking whether voters believe the school budget is too high, acceptable or too low.