BETHEL – SAD 44 Superintendent David Murphy said Monday that the amount of state aid the district expects will be about $681,500 less than last year, rather than the $866,600 less anticipated earlier.

The new figure, provided by the state, still means that development of the fiscal 2010 budget will be challenging.

“The $681,000 would have to be absorbed by the taxpayers,” he said.

Murphy said when numbers were released last week, he believed the reduced state aid did not include a $185,689 penalty assessed against SAD 44 because it hasn’t found a partner for an administrative merger.

He is working on scenarios that would show the fiscal impact on each town.

One thing’s for sure, he said: The final proposed budget won’t be any higher than this year’s $10.3 million. And most likely, it will be less.

Even with a budget of $10.3 million, people in the five-town district would see a significant school tax increase because of the cuts in state aid and higher state-assessed property values, which affect state funding.

“There will have to be reductions in staff and programs,” he said.

The board’s Finance Committee has met a couple of times since the state figures came out, and will meet several more times before Murphy brings his scenarios to the board on April 13.

He said the area’s property value has risen 16 percent, compared with a statewide average increase of 8 percent, while the population has dropped 3 percent.

District enrollment is expected to remain at about 850 students.

When the board meets on April 27, he expects to have a budget recommendation.

Voters in Bethel, Greenwood, Andover, Woodstock and Newry will act on the final budget in May, then validate a figure on June 9.

Murphy said the state aid figure is preliminary and could change.