CHELSEA — The First Branch Unified School District will explore whether to restructure, or even close, a school in Tunbridge or Chelsea after voters failed for the second time last month to approve a budget.

The School Board voted unanimously Wednesday night to form a committee that will look into restructuring options for the 2021-22 school year.

Talks should focus on finding savings while also expanding the programs offered to students, White River Valley Supervisory Union Superintendent Jamie Kinnarney told the board.

The new group is expected to produce a report, including a proposal and corresponding budget, by October. It will be made up of 12 members — a principal, two faculty members, two students, four community members and a representative from the supervisory union office.

“I think a tight timeline’s important,” Kinnarney said. “I think you already have some work done and so now it’s time to really put numbers to it and thoughts to it and see whether or not this is the direction you want to go.”

The School Board also decided Wednesday to delay another budget vote until this fall, when it also plans to unveil the restructuring plans.

The move comes after discontent about the school district’s formation was blamed for the defeat of a $6.98 million budget proposal in June. Voters rejected the budget last month, 266-143, after also defeating it in March. Under state law, school districts that did not have a budget approved by July 1 can get a loan for up to 87% of the prior year’s budget.

Voters said the merger between Tunbridge and Chelsea through Act 46, Vermont’s school consolidation law, was supposed to provide savings and expand scholastic offerings. That move saw the closure of Chelsea High School, which graduated seven seniors in 2018, its final year.

Instead, the School Board’s budget would have increased costs by 4% and followed a spending increase in the prior school year.

Members said the restructuring committee should at least assure residents that they’re serious about reducing costs.

Kinnarney said the group should start by looking at previous plans to reorganize the schools by grade levels that weren’t carried out because of the coronavirus pandemic.

The earlier proposal was killed because of concerns that students returning to in-person learning this fall had already been subject to enough change, having been out of class since March. The Tunbridge Central School and Chelsea Public School teach students in grades PreK-8, and both have school choice for high school.

Residents had also asked the School Board to explore consolidating the two schools into one or possibly offer a joint middle school.

Kinnarney said that could also be an option, but he warned that closing a single school could prove a difficult sell. The School Board would first have to vote to close a campus and then the town losing a school would need to approve it, he said.

Former Tunbridge School Board member Liz York asked about another possibility: whether the district could break apart.

“If the two towns can see their way to working together (and) if all of the steps to merge haven’t actually been completed, then are we in a position that the two towns could go their separate ways in an easier way?” she asked.

Kinnarney replied that to dissolve the First Branch district, a town would have to petition for a vote, have it pass, and then the other town would hold a vote.

The state Board of Education would then get the final say, he said.

The School Board also discussed Wednesday night whether and when to bring forward another budget vote.

Chairwoman Kathy Galluzzo said another budget is unlikely to pass until COVID-19 restrictions are lifted and the district can again return to an in-person floor meeting.

“I also feel like we need to have a budget and at least go back out there,” she added.

But other board members suggested the district craft a survey asking why the first two budget proposals failed.

“It would be good to hear back from the community as to why they voted it down. It may be two totally different reasons in each town,” said Board member Nick Zigelbaum. “That would be valuable information to get back.”

District officials ultimately agreed to craft a survey and, in the meantime, plan to hold another budget vote on Tuesday, Nov. 3, or Election Day.

Tim Camerato can be reached at tcamerato@vnews.com or 603-727-3223.