Preston — As residents grapple with the blockbuster issues of the proposed sale of the former Norwich Hospital and a plan by Foxwoods to create a major outdoor rock music festival, they also need to remember the mundane spring duty of voting on a proposed budget for the 2016-17 fiscal year.

The annual budget referendum will be held from noon to 8 p.m. Tuesday at Town Hall on the proposed $3.4 million general town government budget — a 2.8 percent, $95,454 increase over this year's budget — and the $11.3 million school budget — a 4.5 percent, $488,250 increase over this year's budget.

The Board of Finance reduced both proposed budgets during the spring deliberation process, cutting $56,647, or 0.5 percent, from the school budget and making small adjustments to the town budget, including reducing town employee raises by 1 percent.

The entire $15.8 million budget includes the $801,074 debt service and $243,983 capital nonrecurring budget covering road work and town improvements reimbursed through state grants.

The total budget would require a tax rate of 24.8 mills, a 1.8-mill increase over this year's tax rate.

Superintendent John Welch recommended to the Board of Education in April that it absorb the $56,647 cut by eliminating nonmandated bus transportation to several of the region's magnet schools.

The board delayed action to await the final budget vote.

During the budget public hearing, Welch outlined the likely cuts if the town flat-funded the school budget at $10.8 million.

Nearly all nonmandated special programs could be cut — including the controversial move from two years ago to launch universal full-day preschool, instrumental music for grades four through eight, Spanish in grades kindergarten through eight, library media and all sports and clubs.

The Board of Education was criticized two years ago for implementing the preschool program mid-year after voters approved a budget reduction many thought would cancel the proposal.

Instead, the district found savings elsewhere to provide the funding for the program, which was continued in later budgets. Enrollment is estimated at 39 students in two classes next year.

If universal preschool is cut, the town still would be mandated to have one preschool class for special education students, with the remaining slots — a total enrollment of 15 students — filled by lottery with tuition-paying Preston children.

“From my perspective, it would be a step backward,” Welch said.

Budget critics at the town meeting called the cuts “fear tactics,” but Welch countered that the expenses driving the proposed 4.5 percent budget increase cannot be reduced.

High school tuition makes up 1.2 percent of the increase and includes a 7 percent hike for Norwich Free Academy tuition.

NFA's tuition increase is 2.5 percent, and Preston expects to send 10 additional students to the academy.

Special education tuition, up by $361,409, makes up 3.3 percent of the overall school budget increase, Welch said.

Salaries, the largest portion of the school budget, are slated to drop by $16,323, and health insurance also is down by $37,000, Welch's presentation showed.

Overall, the preschool to grade eight budget is down by $3,895, while the high school and out-of-district special education budgets show a $492,145 increase, the presentation showed.

c.bessette@theday.com