NORWAY – Town Manager David Holt told selectmen Thursday night that he is soliciting creative ideas from town employees to reduce a projected budget deficit in the coming fiscal year.

“We’re certainly trying to avoid layoffs at all costs,” he said.

Holt said recently that preliminary numbers indicate a fiscal 2010 budget cut of at least $380,000 from this year’s appropriation of $4 million. Holt has already asked department heads to turn in budgets that do not account for any budget cuts before he begins whittling them down as budget numbers become firmer.

“I see an overall concern,” he said of ramifications of budget cuts for the next fiscal year.

Holt said he has conducted, but not yet tabulated, a survey of Town Hall and Highway Department employees on cost-savings ideas and he now wants to sit down with representatives of the police union to see if they have any ideas.

“It’s a hard time for everyone everywhere,” he said.

Holt said the police union’s contract, which is in the third and final year, is a legal document and a moral commitment made by the town to union members that must be honored. However, Holt said, he hopes that the union will also help to find cost-savings and thereby reduce the possibility of layoffs or service reductions.

“We owe it to the taxpayers and the union to try to discuss all options,” said Selectman Russ Newcomb, who along with Bruce Cook, will talk with police.

“I would think layoffs would be the last choice we would make,” Holt said.

Holt said he will work on firming up preliminary budget numbers in the next three weeks.