NEW GLOUCESTER – If the Palesky tax-cap measure passes, New Gloucester might lose more than $2.4 million in revenue, officials at Monday’s workshop said.

The town would be allowed to raise only about $1.9 million in property tax revenue, compared to the nearly $4.36 million that has been committed for fiscal year 2005, they said.

Town Manager Rosemary Kulow and selectmen developed charts to reflect the passage of the tax cap on the Nov. 2 ballot. It would cap taxes at $10 per $1,000 of assessed property valuation at 1996-1997 levels.

Some of the cuts selectmen have considered initially include:

• Cutting staff, working hours and related employee benefits.

• Trimming road maintenance projects.

• Reducing funding and hours for the library.

• Reducing transfer station hours.

• Cutting town hall hours.

• Curtailing capital reserve funding that now totals $400,000 annually.

• Adding user fees for solid waste services, building permits, inspection fees, recreation programs, planning and development, fire and rescue.

• Not issuing motor vehicle plates.

Residents might be required to contract with private haulers and pay a per-bag fee for collection and disposal of their trash.

Selectmen say these are not scare tactics, but realistic estimates of areas that might have to be cut from the town budget.

Town lawyer Pat Scully said there are constitutional questions that remain unanswered.

The state Legislature asked Maine’s Supreme Court for an opinion on the proposal’s rollback provision. Scully said the proposal’s 2 percent cap on yearly increases to property taxes is expected to be challenged.

If the tax cap passes and SAD 15 gets all the revenue available from New Gloucester collections, there still would not be enough to run the schools, and there would be no money to run the town, leaders said.

Under the property tax proposal, towns cannot force school districts or counties to decrease their tax assessments or to adhere to the proportionate share that currently exists.

“There are a whole basketful of questions on how it would be implemented if it passes,” Scully said. There are constitutional issues and legal issues, the lawyer said.

“The municipality has to raise taxes and there are conflicting obligations under the cap. The initiative doesn’t change state law,” Scully said.