MEXICO – The position of town manager may be reduced or eliminated, at least until the end of the fiscal year, to lower the town’s budget shortfall.

Selectmen and several department heads met again Thursday night to continue to find ways to save money. In October, officials discovered a nearly $300,000 budget deficit, including almost $200,000 used from reserve accounts.

Chairman Arthur Bordeau said a decision to hold off on hiring a new town manager probably won’t be made until mid-January, which is after the Town Manager Search Committee meets to make a recommendation.

Advertisements for Joseph Derouche’s position will continue in statewide newspapers until the end of the month, as originally planned. Derouche submitted his resignation in the fall, effective Dec. 31. Bordeau said the town has received seven applications.

During the interim, Bordeau and the assistant to the town manager, David Errington, would oversee the day-to-day operation of the town.

Bordeau said that if the town decides to hold off on hiring a new town manager, about $24,000 would be saved through the end of fiscal year on June 30, 2005.

He said the town must find ways to save about $50,000 to ensure cash flow through June 30.

At Thursday’s workshop, selectmen also discussed several other potential reductions, including reducing two full-time jobs to part-time, shutting off about 90 street lights, implementing a freeze on purchases and special projects, and diverting funds from one department to another.

A second workshop to continue looking for cost savings has been set for 6:30 p.m. Jan. 6. Official decisions on any of the suggestions coming from the workshops will likely take place at the regular board meeting on Jan. 12.