Selectmen told a group of local legislators that proposed cuts in state aid and retirement contributions would lead to an increase in the local property tax rate.

During a Wednesday, Feb. 18, meeting at Town Hall, selectmen said a loss of roughly $1.7 million from the state, as proposed in Gov. John Lynch’s new budget, would add 37 cents to the town’s portion of the local tax rate. That figure translates into an increase of almost 8 percent.

“That’s obviously a dramatic increase to our property taxes,” said Town Manager Jonathan Sistare.

Lynch’s proposed budget would decrease state contributions to police and fire retirements from 35 percent to 30 percent. Meanwhile, the town would experience the loss of $1.6 million in revenue sharing and rooms and meals tax revenue.

The meeting was intended to be a dialogue between selectmen and the town’s 14-member legislative delegation on how decision made in Concord during the current economic crisis will affect local taxpayers.

“Especially in this difficult time (we’re) struggling with the same issues you’re struggling with – how to pay for services,” said board Chairman Beth Roth.

Selectmen, who worked to craft a level-funded budget in anticipation of a challenging year economically, are worried about the state revenue loss. Roth warned less state money could lead to layoffs of police officers and firefighters. Officials also questioned if federal stimulus money would make up for the cuts in state aid.

Some of the meeting’s discussion focused on the prospect of expanded gambling at Rockingham Race Track. State Sen. Michael Downing, R-Salem, said he’s written legislation to expand gambling there. It’s a move that would bring in revenue.

“I think that’s something that should be done,” Downing said. “Not only for this state but especially for this community. It will create jobs with private money. You have to understand it’s going to give you more property taxes. It’s going to expand the property tax base, and it’s going to give us a percentage of whatever they make over there.”

The bill is expected to pass in the Senate but die in the House, some legislators said. But they believe the gambling expansion is necessary.

“We need new revenue,” said Rep. Charles McMahon, RWindham, who urged selectmen to testify in Concord in support of the bill. The racetrack, he said, has “been a lifeblood, not just of Salem, but of this state.”

Legislators still have a lot of work to do on the budget. Rep. Russell Ingram, R-Salem, told selectmen that Lynch’s proposed budget will likely be different after legislators are done with it.

“You must understand, this budget will not look like this by the end of June,” Ingram said. “It’s got to go to the Senate, it’s got to go to the House. And they’re going to be bickering back and forth. It’s going to be different. You can talk all you want right now about numbers but they’re not going to be the same numbers.”

The meeting also included talk about local projects and their effect on the economy. Selectman Everett McBride urged legislators to press for the expansion of I-93. The highway is an important link to the Manchester Airport and too many deaths and injuries have occurred on the road, he said.

“It’s the economic pipeline for the state of New Hampshire,” said McBride. “It’s the gateway to New Hampshire.