MILO, Maine — Town officials have proposed a 2010 municipal budget for the second consecutive year that contains less spending than the previous year.

Residents are expected to take action on the budget at the 7 p.m. Monday, March 8, town meeting in the town hall.

The total expenditures proposed amount to $2,832,792, which is down from $2,857,827 in the current year. It is anticipated the town will receive $846,654 in revenues, which reflects a decrease in state revenue-sharing money and excise taxes.

“Our goal is to hold the line this year,” Milo Town Manager Jeff Gahagan said Wednesday.

While the municipal side has held the line, Gahagan said he’s not sure what the school costs will be at this point because of the decline in state subsidy.

“It’s disheartening and disappointing to me that municipalities are being pounded on so hard from state government,” Gahagan said. Because the state is trying to balance its budget by reducing revenues initially given to communities to help fund state mandates, he said the town will have to look at some serious changes next year. “We’re doing all we can to work within our budget here, but we just keep getting hammered from Augusta,” he said.

Selectmen and the budget committee have recommended using up to $100,000 from the approximately $300,000 in the surplus account, if needed, to keep the taxes stable. Gahagan said the town had a revaluation last year that increased the taxes for many residents, so it’s important to try to avoid an increase this year.

The budget does include a 3 percent increase in pay for town employees since no increase was provided last year, according to Gahagan.