FARMINGTON — A decrease in state revenue-sharing would mean an estimated $20 tax increase on a property valued at $100,000, Town Manager Richard Davis says.

Based on a recent report from the Maine Municipal Association, the initial loss to the town was estimated at $72,752. The full impact of a potential $190,000 loss is not expected until next year because the town operates on a calender year budget, Davis said.

The governor has proposed suspending the revenue-sharing program for two years in an attempt to balance the state budget, which begins July 1 of this year.  The program provides towns with a portion of the state’s sales tax, personal and corporate income tax funds.

“In order to balance the state’s budget, they are forcing a tax increase on the local level,” Davis said.

The town hasn’t received what it’s supposed to be getting from the state for quite a while, he said.

The Board of Selectmen last week discussed options for dealing with the potential loss but took no action.

Cuts to the current town budget, enacted by voters in March, would be difficult to make because projects such as the Voter Hill Road project are already underway, Davis said.  

He proposed using funds from the unrestricted fund account to get through the potential cut for this year while advising the board of the potential for serious effects on next year, requiring a close look at all areas of the budget for cuts. It’s probable no projects or new road work would be undertaken, he said.

“It will be a tough year next year,” board Chairman Ryan Morgan said. 

abryant@sunjournal.com