Ledyard — The Finance Committee and Town Council voted Wednesday night to cut $1 million from the proposed municipal budget, sending a $53.8 million spending plan to a town meeting on May 16.

The council voted 6-2 to make reductions in the general government and education budgets, with councilors Steve Eichelberg and Louis Gabordi voting in opposition. Councilors noted the reaction of many residents at the public hearing who spoke out against the proposed increases.

"In my honest opinion what was put forth was not a responsible budget," Councilor Kevin Dombrowski said of the Board of Education's 4.2 percent proposed increase, before voting for the reduction.

"I think we're saving them from a future reduction or a cut because once the budget is defeated, it becomes a bloodsport," said Linda Davis, the council chairman.

The proposed budget would increase by 0.40 percent over the current fiscal year.

The school budget, at $30.8 million, would increase 1 percent over current spending. The general government budget was whittled to $22.9 million after $87,469 was cut. 

As proposed, the mill rate would increase by 1.89 to 32.29.

During deliberations, the school budget was reduced by a total of $1 million, and $200,000 was moved into the town's capital improvement fund to fix some of the high school's ailing bathrooms.

Board of Education Chairwoman Mimi Peck-Llewellyn said that contractual and mandated expenses represented about 3.2 percent of the board's proposed increase, and that the reduction of $1 million, along with uncertainty from the state, would have a "dramatic impact on the school district."

"This year looks horrible and next year, if financial straits don't change, it will not be good ... there are no good choices, but we will do the best we can with what we have," she said.

Superintendent of Schools Cathy Patterson Thursday met with staff who might be impacted by the budget.

Finance Committee Chairman Fred Allyn III again put the focus on the state budget in his presentation to the Town Council.

Allyn estimated that the town's share of state aid would likely be cut by around $800,000, due to a variety of factors, including around $400,000 in the state's Education Cost Sharing, reductions in the Pequot Fund and PILOT payments.

The state's motor vehicle tax cap of 32 mills could also likely mean the town would lose out on around $30,000 in taxes on vehicles. Redistributed sales taxes were meant to offset property taxes over 32 mills, but Allyn said with the state's budget shortfall, Ledyard is "preparing for an assumption that the state will not be able to do it."

To offset the tax increase, the finance committee also made a one-time decision to withdraw $500,000 from the health care reserve fund. According to Allyn, a consultant noted the fund had about $700,000 more that the recommended reserve amount, based on projected claims over the remainder of the year.

The school board will make changes to its budget to reflect the reduction on Monday, Peck-Llewellyn said.

The town meeting has been scheduled for 7 p.m. May 16, with the referendum the following day. If it fails, the budget will go back to the Finance Committee.

n.lynch@theday.com