FARMINGTON — The Mt. Blue Regional School District will need a budget $1 million less than this fiscal year, because less state aid is expected for 2011-12, community members were told this week.

Between $1 million and $1.5 million in state subsidy is anticipated to be eliminated for the fiscal year that begins July 1, Superintendent Michael Cormier said at an informational meeting Tuesday by the school board.

This year’s $22.1 million budget reflects a $1.6 million loss of state aid to education. Taxpayers in the nine member towns saw an overall $184,000 tax increase.

Those towns are Chesterville, Farmington, Industry, New Vineyard, New Sharon, Temple, Vienna, Weld and Wilton.

The school board hosted the informal brainstorming meeting Tuesday to hear ideas on where to cut and what to protect as the budget is developed over the coming weeks. Thirty people attended, with about half of them district employees.

“These are horrible times, not just for us but for our community where a lot of people have lost jobs,” Cormier said.

He pointed to the 50 percent of students in district schools who receive free or reduced lunches. In one school, the numbers are over 60 percent.

“That is huge,” he said. “When I started here as a superintendent 18 years ago, it was 35 percent,” he said. “People are struggling.”

As for his budget forecast, Cormier said things will need to be cut that nobody will like. But the emphasis will remain on keeping schools safe for children and keeping conditions manageable for staff.

Last year’s budget deliberations and vote were marked by contention, with employee unions balking at wage freezes, and community members, students and teachers fighting to retain programs such as music.

Among the suggestions from the audience Tuesday were: Reduce the administrative staff — a department targeted last year; a single-bus route to save on transportation costs; contract out custodial and transportation work; pay-to-play sports; a pay freeze; increasing teachers’ share of their health benefits; and additional employee furlough days.

The Maine Department of Education bases its subsidy calculations on each district’s property valuations and enrollment figures. Cormier said there has been a steady decrease in enrollment since 2001 and property valuations have climbed to three times the state average.

One bright spot could be the addition of about 70 students from neighboring Starks in Somerset County who currently attend schools in the Madison-based Regional School Unit 59.

The additional students could easily be absorbed in Mt. Blue’s school district of about 2,400, and with declining enrollment, they would boost the district’s state subsidy calculation, Cormier has said.

Starks residents are moving forward with the legal process laid out under state law that would allow them to change their school district.

According to a summary distributed to Mt. Blue school board members Tuesday after the informational meeting, Starks this month voted overwhelmingly to change districts. The community is dissatisfied with students’ low academic performance, far fewer educational, vocational and athletic opportunities than those offered in the Mt. Blue district, and current high taxpayer expense with RSU 59.

Starks would bring to its new district approximately $700,000 in state subsidy and local tax dollars.