CAPE ELIZABETH — Voters rejected the proposed $19.7 million school budget Tuesday night, with the majority saying that the budget is too low.

Under the new state law, the school budget passed by the Town Council needed to be validated by a townwide vote. But 1,891 voters opposed the budget, with 1,250 supporting it.

The budget represented a 4.6 percent increase from last year’s, but it was not regarded as large enough by some residents. The school board had wanted a budget that was $263,000 higher.

In a related advisory referendum, voters were asked what they thought of the amount. More than 1,600 said the proposal was too low.

Had it passed, the budget would have raised the tax rate 45 cents per $1,000 of assessed valuation to $12.24, an increase of 3.8 percent.