Preston — Board of Finance members Thursday targeted new positions and a proposed new retirement plan for seven employees as suggestions for cutting the proposed $11.7 million school budget — with what they called an unrealistic 8 percent budget increase.

Finance board members cautioned that residents likely would not support the proposed $871,975 increase in the budget.

At the start of the joint meeting of the education and finance boards Thursday, Superintendent John Welch said the expected departure of one special education student would save an estimated $97,000, bring the budget increase to about 7 percent, and a possible retirement would save another 0.3 percent in the overall budget increase.

School officials also have not made a decision on whether to contract out for school transportation or retain the district-run school bus system.

Town and School Finance Director John Spang presented a summary of the potential five-year savings of outsourcing, with a projected savings in the coming school budget year of $51,453, not including additional revenue the town would receive through motor vehicle taxes on the contractor's buses and by eliminating the need to buy new buses.

Board of Finance Chairman Norman Gauthier said with an expected difficult budget year coming — with a flat grand list and uncertain state grants — now is not the time to propose a new retirement pension plan.

The proposed Municipal Employees Retirement System would cost the school district $94,301 in the coming year.

Welch said the town created a MERS program for town employees in 1990, while these school district employees never were offered a plan.

Board of Finance member Andy Bilodeau called the proposal to hire two new kindergarten classroom assistants “a wish” that has been proposed in past years, but should be put off again.

The new aides would cost about $60,000, including health benefits.

Bilodeau also agreed that the new proposed retirement plan for seven employees would be costly and questioned whether the board could offer an alternative retirement benefit, such as an annuity program.

Welch said three of the employees do have annuities — as do town employees who also have MERS, First Selectman Robert Congdon said.

“It's a small amount of money compared to the overall budget,” Bilodeau said of the retirement contribution, “but it's an amount of money we would have to pay every year if we make that decision.”

Finance board member Melissa Lennon questioned another new proposed position, a one-day-a-week science teacher for $17,762, calling it a “lovely idea” but not at this time.

The Board of Education is scheduled to vote on the 2016-17 budget on Feb. 8 and will present the budget to the Board of Finance in early March.

c.bessette@theday.com

Twitter: @Bessettetheday