MONMOUTH -- Residents once again on Monday rejected a proposed budget to operate town schools during the 2008-09 school year.

The decision leaves the school system without a new budget and residents facing the prospect of yet more votes.

Residents agreed 357 to 239 to reject a $7.6 million budget approved by voters at a June 25 budget hearing.

Monday's was the fourth public vote in less than a month, and the second time the budget failed to clear the final hurdle of ratification.

Residents Monday voiced overwhelming support for a smaller budget, shown by an advisory question for those voting against the budget included on the ballot.

Of those voting to reject the budget, 338 said they wanted to cut spending, Deputy Town Clerk Carrie Ivey said.

The budget had to be approved by the beginning of the fiscal year -- today -- to become effective. Because it was rejected, the 2007-08 budget will continue to be honored until a new budget can reach final approval.

School Committee members will likely discuss the budget and its next step during a meeting scheduled for 5 p.m. Wednesday at Monmouth Academy.

Selectmen, who have consistently recommended a $7.4 million budget, are expected to meet at 6:30 p.m. Wednesday.

What is clear, Ivey said, is that the budget is headed for a third round of voting.

The budget meeting, during which residents can change spending, will be followed by another referendum vote during which residents will either accept or reject the budget that emerges from the budget meeting.

Neither the budget meeting nor the referendum has been scheduled.

The budget has already faced a number of twists and turns.

The school board initially proposed a $7.7 million budget that called for nearly $3 million from local property taxes, a nearly 15 percent increase in local funding over this year.

But voters at a June 2 budget meeting agreed 29-28 to instead accept the $7.4 million budget recommended by selectmen. That budget included a $298,000, or 4.2 percent, increase in local funding. The selectmen's recommendation would have required an additional $91,000 in local property taxes to be collected, up about 2 percent from this year.

Then, voters taking part in the June 10 budget validation referendum rejected the selectmen's budget, 441-308.

The decision kicked the process back to the School Committee to prepare a budget for another budget meeting and validation vote.

The School Committee was able to shave nearly $100,000 from its original budget proposal -- the board cut the portion generated by local property taxes to $279,000 -- in time for the June 25 budget hearing, but selectmen continued to argue for their $7.4 million budget.

Voters at the June 25 meeting agreed 99-43 to send the school board's $7.6 million budget forward for the referendum that took place Monday.

Craig Crosby -- 623-3811, Ext. 433

ccrosby@centralmaine.com