LISBON – A 26 percent reduction in the school budget and a 20 percent reduction in the town work force is a likely scenario presented by Town Manager Curtis Lunt if the Palesky tax cap is passed by voters.

The Advisory Board is reviewing the possible impact on the town operations and the schools, which is estimated to be cuts of $1.35 million and $3.3 million, respectively. The board will report to selectmen Tuesday night.

On the school side, Superintendent Shannon Welsh listed the following “general reductions” that might be considered: 31 teachers, 22 members of the support and four administrators; 100 percent of co-curricular activities and all transportation for it, plus overtime. Also under consideration, Welsh said, is reducing utilities by 20 percent; cutting heating oil by 20 percent; and reducing deferred maintenance, supplies, books and contracted services by 26 percent each. These cuts would total $3,109,651.

In order to achieve the targeted reduction of $3.3 million, the School Committee might instead choose to request an emergency waiver from the state commissioner of education to reduce student school days from 175 to 110 day, which would result in reducing the work year for year-round employees from 260 days to 200 days. These actions would meet the target reduction, Welsh said.

Other steps could include instituting pay-to-play extracurricular activities, raising the price of school lunches to make it self-supporting, and requiring secondary students to pay for transportation to school, for example.

The possibilities are being brought forward now so there will be “significant time to discuss with citizens on how to make specific reductions,” Welsh said.

Lunt said possible town budget cuts include reducing the current 60 town employees by 20 percent, instituting pay-per-bag trash collection, and closing the library and Teen Center.

Lunt says the cap is estimated to reduce local real estate tax collections from $8.7 million to $4.81 million. Residents would probably see longer lines and cuts in services, Lunt said. Both Lunt and Welsh stressed the suggested cuts are estimates.

The cap reduces taxes not only on homes, but also businesses, Lunt notes. Miller Industries in Lisbon Falls, one of the largest taxpayers, would see a $225,000 reduction in its tax bill if the cap passes.