NORWAY — Town Manager David Holt unveiled a proposed $3.9 million municipal budget to selectmen and the Budget Committee on Thursday night, saying the town will see a nearly 12 percent decrease in spending if Gov. Paul LePage’s proposed program cuts are approved.

The town budget would require a number of cuts in spending to make up for $250,000 in lost revenue sharing under the governor’s proposal. The proposed cuts include eliminating 1½ positions in the Highway Department to save $50,000; reducing hours in the Police Department to save $25,000; cutting hours at the town hall to save $15,000; eliminating all funding for provider agencies to save $25,000; and reducing funding for community agencies to save $12,500.

Additionally, Holt has proposed eliminating park rangers and reducing the mowing contact to save $13,000; library cuts to save $12,500; cutting the town manager’s budget to save $5,000; and cutting the capital budget to save $92,000.

The items total $250,000.

Holt said a Highway Department full-time employee has already left in anticipation of the cuts.

Even with those cuts and other smaller ones in the budget, Holt said taxpayers will see a 2.25 percent increase in the tax rate.

Holt also presented other budget scenarios.  If LePage’s cuts pass the Legislature and the town funded its “normal” level of appropriations, for example, the tax rate could increase just over 20 percent, Holt said.

Holt recommended road maintenance be a priority and proposed spending $360,000 for road improvements, or $250,000 if LePage’s cuts pass.

He recommended spending $26,500 on in-town streets, with or without LePage’s cuts. He has also set aside money for bridge repairs, the Fire Truck Reserve Account, municipal building repairs and improvements, and money for the highway equipment and highway reserve funds.

While he said some savings have been found, such as a $25,000 reduction in general assistance, there are increases, such as the cost of state retirement that the town must pick up.

In addition to the $250,000 Norway could lose in state revenue sharing, the town stands to lose $113,472 from the Homestead Exemption and $80,000 in personal property taxes.

Selectmen and the Budget Committee will formulate a budget recommendation for annual town meeting voters in June.

“They say politics is the art of compromise. If that is true, we never see politics anymore. We see adversaries,” Holt said.

ldixon@sunjournal.com