LIVERMORE FALLS – School officials in SAD 36 and Jay are looking at what the next step will be for each school system now that voters rejected a consolidation plan.

“I think the problem is where do we go from here,” SAD 36 interim Superintendent David Wallace said.

SAD 36 has to put out a budget for 2009-10 and to negotiate contracts that expire this year including the agreement with teachers.

Voters in Jay, Livermore and Livermore Falls all rejected the merger proposal in a combined tally of 359-501 on Jan. 27.

Jay Superintendent Robert Wall said the Jay School Committee will meet at 6 p.m., Thursday, Feb. 5, at the middle school library to discuss their options.

He said he will be looking at the consequences of the no vote and the exact penalty for Jay. The estimated penalty for a no vote is about $201,000 for that town and about $163,000 for SAD 36.

Jay also has to put together a budget for the next school year and negotiate teachers’ contracts this year.

Both school systems are dealing with declining state revenue.

In the meantime, Wallace and Wall were scheduled to meet Monday to discuss efforts to find ways to save money.

Wallace told SAD 36 directors Thursday he would check with the state Department of Education to see what they need to do next, and if that includes filing an alternative plan to stand alone.