NEW GLOUCESTER – Selectmen approved a municipal budget for 2009-10 that falls below last year’s spending in light of less anticipated revenue.

It doesn’t call for any layoff of town employees.

Town Manager Sumner Field III on Monday said the town will use money from an undesignated fund balance to offset spending and less capital spending.

Voters will act on the budget in May.

The gross municipal budget includes a tax increment funding district payment from Pineland Center estimated at $195,000 for a total town budget of $3,206,000.

Selectmen agreed to remove $664,000 from an undesignated fund balance of $3.9 million to offset the spending. The fund serves as a cushion for the town, Field said.

The net budget to be raised by taxes is $840,000, which is lower than last year’s $1,016,842.

The SAD 15 budget is yet to be determined, but is estimated at roughly $4 million for New Gloucester, Field said. The Cumberland County assessment is not finalized.

“We expect excise tax for the town to drop by $100,000,” Field said.

New Gloucester’s assessed valuation set by the state is $516 million, up from last year’s $449.7 million.

Capital reserve spending totals $262,250. Other accounts include: public works at $599,925; tax assessment at $72,016; administration at $269,750; Fire Department at $201,780; planning at $85,950, and library at $79,800.

Insurance is up 10 percent to $265,175.

Field said the budget includes no raises or cost-of-living adjustments for employees. Employee health care benefits will not change.

State revenue sharing is expected to decrease by 10 percent.