Members of the environment and leisure committee felt a lower speed limit was not necessarily the solution to safety issues.
They also pointed out East Sussex County Council was the highways authority and should pay for the work.
Residents John and Sandie Boniface have been campaigning for a lower speed limit and more than once have requested the town council pay for the implementation of a lower limit.
The county council has agreed that the road is suitable for a 20mph speed limit but has refused to fund it.
County councillor Paul Sparks has been working to get the scheme off the ground and won a concession for “match funding” from the county.
Many town councillors feared that if they helped pay for a 20mph limit they would be considering road safety issues in Church Street again within 12 months.
It was suggested traffic lights, wider pavements or “pinch-points” were needed to make the road safer for pedestrian and drivers.
Cllr Helen Firth said speed limits and road safety were the job of the county council. “If they cannot manage to squeeze out £2,000 out of all the money they get, they have a major problem. £2,000 is a pin-prick to them,” she said.
*Town council committee budgets for 2013/14 have to be agreed by a meeting of the full council.