North Stonington — Residents rejected both the town and school budgets at Monday's referendum.

The Board of Finance will now meet Wednesday to discuss and potentially recommend reductions.

The late referendum on the $19.2 million spending plan means that the tax rate will need to be set and tax bills sent out before the town has a chance to vote again, likely a month away, said First Selectman Shawn Murphy.

Voter turnout was nearly double that of last year's budget referendum, as 711 ballots were cast Monday. Including absentee ballots, the school budget was rejected by more voters, 457-273, than the town budget, 404-323.

 “I’m not really surprised because I think it’s a reflection of how the vote went on the school modernization,” Murphy said about the recently approved project that passed by three votes.

He added the state statute was unclear as to whether the Board of Selectmen could set the tax rate ahead of July 1, the date which the new fiscal year starts. In the past, the Board of Finance has also set the tax rate.

The Board of Finance deliberated cuts before the town meeting on the budget last month, requesting both boards look for ways to halve increases in their operating budget before deciding to forward their full requests to a referendum.

The defeated budget called for a 4 percent increase and a 1.7-mill tax hike. 

The Board of Education’s budget increased by $250,000. Superintendent Peter Nero repeatedly said at town meetings that he “couldn’t give a zero (increase)” this year, and noted that $192,000 of the $250,000 would be used for increases in health care costs for employees.

Around half of the overall budget increase, $389,000, is money set aside for the Center for Emergency Services. Other capital expenditures include the replacement of the North Stonington Volunteer Fire Company’s forestry truck and chief’s car.

 The selectmen’s budget was up 2.6 percent overall and 2 percent raises were given to Town Hall employees.

 n.lynch@theday.com