WINDHAM – Forecasting dismal revenues, decreased services and a budget gap of $1 million requiring drastic cuts, Windham Town Manager Tony Plante warned the public and town councilors Tuesday night to expect a difficult budget season that will likely lead to the loss of staff and services.

Plante’s announcement didn’t come as a shock to town councilors, as municipalities all over Maine are preparing their 2010-2011 budgets knowing to expect less in state subsidy and decreased revenue from local sources such as the excise tax as the sagging economy takes its toll.

Because of the difficult choices that lie ahead regarding Windham’s desired level of services and staffing, Plante told councilors on Tuesday night they will receive his preliminary budget on March 30, a week earlier than expected, which he said will provide more time for review to the finance committee and Town Council, which has the final say regarding budget matters.

Underlining the seriousness of the issue and his desire to keep the public posted, Plante also sent out a press release on the upcoming budget indicating the “size of the problem we’re dealing with,” he said. In it, as well as during his town manager’s report at Tuesday night’s council meeting, Plante paints a dismal budget picture which will likely result in a slashing of town services and staffing positions.

To make up a projected $1 million shortfall compared to last year’s revenue, Plante said some cuts will need to be made through existing staff vacancies and retirements. Further reductions will involve the loss of some seasonal, part-time, and full-time staff positions. Hours at the town offices, the public library and parks may be reduced as part of the cost-cutting measures, he added.

Windham’s 2009-10 municipal budget is $13.8 million.

“Before (March 30), the manager and department heads will be working to close a budget gap of about $1 million,” Plante said. “The budget gap is due largely to the loss of state and other revenues as well as expected increases in fuel and other costs.”

Not able to speak specifics pending the release of the budget, Plante also budget cuts can be expected to result in a “scaling back” of the number of programs and services, and in the way some services are delivered.

“I’ve been meeting with department heads for the last several weeks trying to identify what is most essential to each department,” Plante said. “What we are required to do versus what we choose to do.”

Plante also acknowledged the impact his budget is having on morale at town hall.

“I’m sure it’s a very stressful and anxiety-producing time for staff. That’s not likely to get any easier with the release of my budget on the 30th … There will be some impact,” he said.

Despite the immediate impact, Plante said there are some upsides to the current budget woes. He said government is getting leaner and more efficient as a result of the penny-pinching.

“There’s a temptation to look at this as being all bad … and I certainly am guilty of that much of the time. And there is a lot about this that will be difficult, a lot that will be potentially unpleasant, ” Plante told councilors Tuesday night. “But I think there is a real opportunity here. It’s what I refer to in our staff meetings as adjusting to the ‘new normal.’

“If going through this economic bubble bursting that we’ve gone through over the last couple years gets us to take apart and put together municipal services in a way that is more effective, more efficient, and still responsive to the core needs of the community, then I don’t think that’s a bad thing,” he said. “I think we tend to get comfortable after a while and tend to approach doing things in a certain way. That’s not necessarily wrong, but it doesn’t fit the times we’re in.”