CANUTILLO, Texas -- Voters in Canutillo said no to a tax increase the school district there said it desperately needed.

The Canutillo Independent School District said it did everything to try and get the tax increase passed, but they fell just 32 votes short.

The district right now is short about $1 million, and will have to dip in its rainy day fund to make up for that shortage. Plus, teachers will not get a 2 percent pay raise, some programs will be cut and the school district will have to look into hiring freezes and larger class sizes.

"We're hoping it has a minimum effect on the students, because that is where we do not want it to influence anything with their education negatively," said CISD interim superintendent Rosa Parks.

If the tax increase had been approved, it would have meant an additional $1.1 million in funding from local taxes, matched with $850,000 in state funding.

In return, the average home in Canutillo worth $100,000 would have seen an extra $5 a month in their taxes.

Residents KFOX spoke with said they knew about the vote, and some are disappointed about the result.

"I'm all for better education and my granddaughter just graduated from St. Mary's and she's going to be a teacher, so I think they deserve a lot of credit and pay raises and whatever they need," said Rose Heldt, a Canutillo resident.

The school district said that there are some things that they just cannot cut. That includes the $300,000 of improvements they need to make under the American Disabilities Act, which is state mandated.