BETHEL – Nearly 100 residents in SAD 44 on Wednesday night overwhelmingly approved a 2009-10 operating budget that is about $600,000 less than the one adopted for the current year.

The $9.67 million budget will now go before voters at referendum in Andover, Bethel, Greenwood, Newry and Woodstock on Tuesday, June 9.

The budget does not include federal stimulus money, which is expected to be about $285,000, Superintendent David Murphy said. It does include the $198,000 penalty the state had originally assessed the district for not partnering with another district. That money, said Murphy, will be used to add some line items back into the budget and as carryover for what he expects will be a tremendously difficult budget-building process for fiscal year 2010-11.

Some wanted the penalty money to be applied to the member towns’ tax liability.

The item causing the greatest discussion was the last article that requested voter approval to move $500,000 from the unexpended balance at the end of 2009-10 fiscal year to the capital reserve fund.

Bethel Selectman Dennis Doyon said that money should be used to offset taxes.

“You still have almost $1 million in capital reserve, in the year we’re having now, this money has to go back. We’ve sent out more tax and sewer liens than we ever have,” he said.

Discussions and voting took more than 90 minutes.

Woodstock resident Steve Bies tried to amend the amount to $250,000, but that proposal died for lack of a second.

The $500,000, along with about $875,000 more in the capital reserve, will be used to improve the schools of the district, with a particular emphasis on the Telstar Regional Middle/High School complex in Bethel.

Murphy said with budget development expected to be even worse next year because of the anticipated greater increase in state valuation for member towns, which means fewer state aid dollars, it was important to place the funds in the capital reserve now.

He said the district will realize an immediate return on its money because of plans to make changes at the complex that would save energy. He said the windows have an insulation factor of R1, which is extremely low, and the insulation is so poor in the roof that snow does not have to be removed from it.

An energy audit will begin soon, and the board will likely decide on a capital project sometime this summer.

He said district residents will have a chance to act on the proposed project as early as the November general elections.

To reach the adopted budget figure, a variety of cuts were made, including elimination of an elementary teaching position, a high school English position, a secretary at the central office, the 4 p.m. late bus and Crescent Park Elementary School wing leader stipends. The industrial arts position was cut to half time.

The impact on taxes for homes valued at $150,000 would be: Andover, $0; Bethel, +$58.50; Greenwood, +$73.83; Newry, +$55.74; and Woodstock, +$44.41.