MINOT – The School Committee and Board of Selectmen on Monday night accepted Town Administrator Gregory Gill’s budget analysis if a 1 percent tax cap is imposed. The result would be a $500,000 cut.

In order to develop a picture of what the impact on school and municipal programs would be under the Nov. 2 Palesky tax-cap referendum, the two boards agreed to split the revenue shortfall.

Union 29 Financial Officer Stacie Everett was directed to prepare a budget $250,000 less than the current one, and Gill likewise was asked to show the effect of cutting that amount from municipal government.

Gill’s report noted that the tax-cap proposal allows a town to collect taxes amounting to 1 percent of property valuation, plus the amount of a town’s existing debt.

Thus, according to Gill’s figures, the town would be allowed to raise $1,565,434 through property taxes. This amounts to a tax rate of about $10.50 per $1,000 of assessed property value.

The fact that Minot has a relatively low tax rate – $14 per $1,000 – means Minot would not be affected as severely as many other area towns, school Superintendent Nina Schlikin pointed out.

“You are far better off than either Poland of Mechanic Falls. At Elm Street School, they are being asked to consider a $660,000 cut and you know that has to come out of personnel. School budgets are mostly salary costs. People and programs, that’s the only option you have,” Schlikin said.

Everett noted that cutting $250,000 at Minot would mean losing about $57,000 in state matching money and, as a result, the $307,000 shortfall in Minot could also be significant.

The School Committee and the selectmen agreed to meet at 7 p.m. Oct. 4 at Minot Consolidated School to look at the tax cap’s effects on actual town and school services and programs.