GREENWOOD – Budget season is looking grim for town officials worried they may face a significant increase in costs due to a new school funding formula.

Town Manager Kim Sparks said Monday that the amount Greenwood pays for school services could jump by more than $170,000. Looking at the whole budget, she said, “Our biggest concern is the school amount.”

Last year, Sparks said, Greenwood paid $610,000 for school services.

The increase may come from a new law expected to go into effect July 1. While towns have traditionally paid for school services according to a formula based on property valuations, in 2005 they may be asked to pay at a per-pupil rate. According to early projections, this means a significant increase in tax burden for all but one town in SAD 44. Andover, Bethel, Greenwood and Woodstock are expected to see significant increases in costs while Newry may get a $1 million break.

The Bethel Board of Selectmen already has protested the change, and at a Jan. 4 meeting, the Greenwood Board of Selectmen authorized Sparks to write a letter to the Maine Legislature regarding their own concerns.

Even Steve Wight, chairman of the Newry Board of Selectmen, said his town is not pleased with the new formula.

“I don’t think it’s possible to make such a severe change in one year without upsetting the local apple cart,” he said. “I think the consensus of the Board of Selectmen is, it’s not fair.”

He pointed out that many second-home owners in that community will benefit from the law while local residents in other towns will pay more for schools. Newry selectmen have made individual calls to state legislators regarding such concerns, he said. “We’re given assurance that something will be done, although I haven’t seen any move toward that.”

David Murphy, superintendent for SAD 44, said he has heard rumors about emergency legislation that may be enacted to prevent the local funding formula from taking effect. However, at this time, he said, “I certainly don’t think that’s pending.”

Murphy has not put his 2005-2006 budget together because he’s unsure what will happen. Instead, he’s been busy warning state and local officials about the possible effects of the law.

Greenwood, in the meantime, is pressing on with the budget process. The selectmen have reviewed a rundown of expected revenues in 2005 and will meet at 4:30 p.m. today in the town office to discuss expenditures.

The budget should be complete by the end of the month, Sparks said.