GORHAM – With its state revenue sharing funds hanging precariously, Gorham councilors Tuesday passed a $12.1 million municipal budget, while also ordering the town clerk’s office closed one day a week and cutting their own paychecks.

Hinging on pending state budget action in Augusta, the town’s budget could be back on the council’s table when it meets on Tuesday, July16.

Under the state’s budget approved by the Legislature, Gorham would receive $752,607 in state revenue-sharing funds – a sharp decline – according to town figures. So, Gorham is now waiting to see whether Gov. Paul LePage vetoes the Legislature’s budget and, if he does, what further action the Legislature might take.

“If he vetoes it, we could get nothing,” Gorham Town Councilor John Pressey said after Tuesday’s meeting.

Town Manager David Cole said in Tuesday’s meeting that by law Gorham should receive $1.5 million in state revenue sharing. But, Cole had formulated his proposed budget based on the town receiving $1.1 million in revenue sharing funds.

“We’ve got to deal with the hand we are dealt,” Town Council Vice Chairman Michael Phinney said.

Grappling with $362,393 less in expected revenue sharing to work with, the Town Council on Tuesday pared Cole’s proposed town budget by $221,567. It dropped from a proposed $12,313,173 to $12,091,606. This year’s municipal budget is $12,148.463.

The council passed its new municipal budget 4-3 (Chairman Phil Gagnon, Suzanne Phillips and Matthew Robinson opposed).

“I don’t agree with closing the clerk’s office one day a week,” Robinson said. “I’m not supporting anything that reduces services.”

The action came in a special council meeting Tuesday after budget action had been postponed at the regular council meeting on June 4.

On Tuesday, Gagnon had recommended postponing action again on Gorham’s budget until June 27, when LePage’s position on the state’s budget will be known.

In a major savings, the council removed $63,392, money budgeted for first-year interest payments on a bond referendum that failed last week. Voters rejected a $6.3 million public safety complex at the former Little Falls School.

In a big impact for the public, shutting the clerk’s office one day per week saves $11,000 annually. It’s unclear what day of the week the clerk’s office would be closed, and the office is now open only a half day on Fridays, 8:30 a.m.-1 p.m.

Duties in the clerk’s office include handling vehicle registrations, tax collections and voter registrations, along with issuing hunting and fishing licenses.

Further amending Cole’s budget, the council even cut their pay for each of the first two quarters. Cole said Wednesday all councilors will now receive $75 pay per quarter for the first two quarters. The change reduces the council chairman’s pay from $625 per quarter; vice chair from $600; and councilors from $575. “After the first two quarters, their pay would revert back to the current pay,” Cole said.

The council did not close Robie Gym on South Street, which would have saved $9,257 in operating costs. Town Councilor Sherrie Benner opposed the possibility of selling the gym, an option that received some council discussion.

Cole’s budget does not include $888,144 for the Cumberland County tax, up nearly $45,000 from $843,230; or the $32.9 million Gorham school budget approved last week by voters in a referendum.

Sharon Laflamme, Gorham finance director, said on Wednesday the estimated tax rate per $1,000 of valuation will be $17.43, which represents a $1.13 increase from the present tax rate of $16.30. Laflamme said the town budget increased the tax rate 21 cents; school budget, 89 cents; and the county tax, 3 cents.

The tax rate hike means taxes on a Gorham home valued at $200,000 will rise by $226.

The budget does not include operating the former Little Falls School after Sept. 1. It has been used recently by a senior citizens group and by the town’s Recreation Department. Voters last November approved $500,000 to repair the building, and those using the building would have to vacate when repairs begin.

Blanche Alexander, president of Lakes Region Senior Center, said in Tuesday’s meeting the seniors group feels it doesn’t need to be evicted during repairs.

She said it also wanted to be part of the decision-making process about future of the building.

“We all feel Little Falls School should be developed as a community center,” Alexander said.