PERU — Selectmen began work Monday evening on the 2015-16 budget.
Town Clerk Vera Parent said the budget must be completed by the end of March, but it would be good to finish it by early March.
Resident Carol Roach told selectmen that good financial policy required them to consider future town requirements, not just the needs of the next budget. She said selectmen should be looking at least two to four years into the future.
Selectmen and residents expressed concern over budget changes proposed by Gov. Paul LePage, suggesting a reduction in state income tax while cutting municipal revenue sharing and homestead exemptions. Parent said revenue sharing for the town is about $75,000 and homestead exemptions are worth about $10,000.
Selectman Jim Pulsifer said Peru has traditionally had a tight budget, and there was very little that could be cut. He pointed out that the school expense drives the budget. If the governor’s proposal is adopted by the state, the property tax rate will go up about 2 to 3 mills, he said.
Board of Selectmen Chairman Lee Merrill said if residents set aside the money they save on state income tax, it could offset any increase in property tax.
Pulsifer reminded the board that the governor’s proposals were for the 2016-17 biennial budget and would not affect Peru’s 2015-16 budget. The Legislature will have taken action on the proposals before the town develops its next budget.
Pulsifer said that to reduce the school budget, it would be necessary to eliminate unnecessary space. He said he supports Regional School Unit 10’s study aimed at better matching capacity to the dwindling school population.
Resident Dawna Kazregis said RSU 10 loses $4,000 for each child who is homeschooled and said the town needs to look at the reason so many are being homeschooled. RSU 10 lost two more students to homeschooling this week, she added.
Merrill said the town needs to consider the effect of Obamacare on the cost of the town’s ambulance service. Provisions of the federal Affordable Care Act are resulting in more unreimbursed ambulance calls, he said.
Selectmen requested that the Finance Committee meet at 6 p.m. Monday, Feb. 9, and Tuesday, Feb. 17. They will meet at the same time, then join the committee meeting.
Board of Selectmen secretary Angela Barkhouse said the 15-member Finance Committee has six vacancies and there have been no volunteers despite repeated appeals.
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