PARIS — At his first selectmen’s meeting as town manager, Philip Tarr said the town may need to borrow funds to offset proposed state cuts.

“We’ve all read in the paper that change is coming from Augusta, especially with money that comes to the municipalities for education and municipal services,” Tarr said.

He said the town spends about $450,000 a month on municipal expenses and its share in the Oxford Hills School District. He said $1,116,000 is available in the town’s checking account, enough to cover expenses for February and March with more revenue potentially available from excise taxes and other sources.

“I would ask the board to think about at this point and time the possibility that we might need to borrow a sum of money to get the town to the end of the year,” he said.

The 2010 fiscal year budget, which runs through June, was approved at town meeting last year and includes $3,194,434 in estimated expenses. That figure was a $22,539 decrease from the 2009 fiscal year budget. It was offset by increases in county and school expenses, which brought the town’s total budget to $5,574,838. That amount was $281 less than the total 2009 budget.

Gov. John Baldacci has proposed a two-year $5.5 billion budget which includes cuts to different departments and services. While the proposal does not include any new taxes or fees, it aims to close a $438 million shortfall resulting mainly from lower than expected revenues. Tarr said that under the plan, $83,000 in state revenue sharing for the town would be taken away.

“We’ll have to make up for that loss, and maybe some others, in the current operating budget,” Tarr said.

Tarr also said that the town makes two payments each year to pay off the mortgage on the fire station. One $33,000 payment is made to interest and another $150,000 payment is made for both interest and principal. He said that only the $150,000 payment was included in the 2010 budget. The $33,000 payment has been made, but will have to be covered as an overdraft.

Tarr estimated that general assistance, which the town must provide by statute, will total $30,000 to $40,000. Selectman Raymond Glover said those expenses have usually been between $15,000 and $20,000, but could be higher if a 50 percent state match is cut.

Tarr said he would delay the hiring of a permanent town clerk to replace Anne Pastore, who resigned at the end of December, and update selectmen on the financial situation at their next meeting on Jan. 28.

“All in all I think our budget is solid. I think the department heads have done a good job holding their budget,” he said. “I think there will be some surpluses here and there.”

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