New London — The City Council on Monday rejected the mayor’s proposed budget for fiscal year 2017, voting unanimously against both the government and education sides of the spending plan.

Mayor Michael Passero recommended an $88.3 million budget, which contained a $1.99 million, or 2.3 percent increase, over the $86.4 million adjusted budget for 2015-16.

With $45.9 million on the government side and $42.4 million for education, there would be no tax increase under his proposal.

Councilors and residents alike debated over what could be a possible break for taxpayers versus things like restoration of school funding or a boost to a depleted Public Works Department.

Monday’s vote was just the first of three votes and adjustments by the council's Finance Committee that are expected to be made in the coming weeks.

Passero had cut the Board of Education’s $43.5 million request, a $1.06 million increase, to last year’s level.

That decision led to fierce debate on whether or not those funds should be restored in part as a vote of confidence for school Superintendent Manuel Rivera and to support the transition into an all-magnet school district.

Council President and Finance Committee Chairwoman Erica Richardson said she is in favor of increasing the school budget and was among other councilors to vote no because the education budget was too low.

Considering the severe drop in revenues, nearly $5 million, Rivera started with when composing his budget, Richardson credited the school board for keeping the proposed increase to a minimum.

“I think their efforts to get it that low are commendable, considering the increased responsibilities,” she said.

The Board of Education had approved a $64.6 million budget, which is a 0.21 percent increase over this year’s $64.5 million budget.

The school board’s full budget is made of both city and state funds — about $20 million of it comes from Education Cost Sharing grants.

Councilor Efrain Dominguez agreed with an increase in school spending, saying “education is key to bringing families to our city.”

Councilor John Satti also voted against the school budget but appeared to want it lowered further, commenting on the large number of central office personnel.

“You take a look at the school budget document, over 30 people make $125,000 a year,” Satti said. “What does that equate to? $4.5 million. I challenge our Board of Education to make the proper cuts.”

Several councilors also appeared to be struggling with the government spending plan as presented, arguing that it may be too low.

Councilor Don Venditto said he was concerned that the city side of the budget underfunded both the pension plan and Public Works Department.

He called the lack of building maintenance “a systematic problem that has plagued our city for years,” and something that needed to be reversed. Others councilors agreed.

Residents who spoke at Monday’s meeting also were split in their opinions.

Several people carried signs in support of the schools, while some property owners expressed frustration at what they said was a continuous cycle of tax increases.

“All we’re asking for is one year (without a tax increase),” said business owner Bill Cornish. “Give the citizens of New London a break.”

Business owner Charlotte Hennegan, honored moments earlier for her commitment to the city and contribution to economic development, asked the council to wait on any tax hike until the economy has recovered.

“Now is not the time,” she said.

The councilors, at a series of Finance Committee meetings over the past two weeks, has spent time poring over the mayor’s proposed budget but has yet to make its own spending recommendation.

Adjustments are expected in the coming weeks.

“It’s going to be a difficult decision,” Richardson said. “We have to keep in mind the responsibilities we have to the city.”

g.smith@theday.com