EAST MILLINOCKET – The repercussions from Great Northern Paper Inc.’s bankruptcy have hit this northern Penobscot County town of about 2,000 people like a woodsman’s ax.

With little hope of receiving any tax money from GNP – the town’s largest taxpayer – selectmen are taking steps to reduce municipal operating costs so the town won’t run out of money by June 30, the end of its fiscal year. GNP’s total tax bill for 2002 is $3,432,638, or 67 percent of the town’s total tax revenues. The company has made no payment.

“It is the hardest thing I’ve ever done in my life,” said Clint Linscott, chairman of the Board of Selectmen, referring to the cuts in municipal services. His comments Wednesday night were echoed by other selectmen.

Effective next week, the town office will be open four days a week instead of five, and the hours of the five full-time employees who work there will be cut from 40 to 32 a week. The town office won’t be open Fridays until further notice.

In addition, a total of six town positions will be cut, two full-time and four part-time positions.

One full-time public works position will be cut effective Feb. 7. One part-time transfer station attendant position will be cut effective Feb. 7. Three part-time truck driver positions will be cut effective today. The public works director now is a working supervisor, which means he is part of the crew. Town officials suggested the public works director establish a revolving overtime call list.

The town nurse position and the services she provides to people in the community will be eliminated effective Feb. 28. Officials said they wanted to allow enough time for patients to make the transition.

The hours of the town’s library will be reduced from 26 to 21 a week beginning Monday, Feb. 3. The hours of two part-time librarians will be reduced by five hours a week. New library hours are from 1 to 5 p.m. Mondays, Tuesdays, Thursdays and Fridays; and from 1 to 6 p.m. Wednesdays.

Effectively immediately, all overtime is to be kept to a minimum.

The town has 28 full-time employees and dozens of seasonal part-time employees, said Mary Morris, the administrative assistant. Morris estimates the reductions will save the town approximately $1,800 a week or $93,000 a year. The town’s total municipal budget for 2002 is $3.2 million, of which $2.5 million was to be raised from local taxes.

“The money situation is very serious,” said Linscott. “These are steps we had to take. We are trying the best we can to allow people some time. We are trying not to do what Great Northern did … walk in and say, ‘You are out of a job today.’ Granted, a week or two is not a lot of time [notice], but it’s better than walking out of a meeting and saying you are done right now.”

Linscott and other officials said they believe that even if Great Northern’s paper mills reopen, they won’t employ as many people as they did before the bankruptcy. Some area residents are speculating that as many as 40 percent of the work force could be cut.

“We are trying to conserve cash over the next several months,” Morris said. She said the board’s goal is to have all departments contribute in some way.

“Our second half [tax] due date is next week, Feb. 6, and they [Great Northern] are still not running,” Morris said. “I really don’t know. At this point, we are not anticipating any [payment]. At some point we feel that we are going to get some.”

Morris said the shutdown of Great Northern likely would mean that affected residents and businesses would not be paying taxes or wastewater and water bills.

“We have ambulance bills tied up in HealthScope, and there will be ambulance patients, who won’t be paying their bills,” she said. The town runs an ambulance service, which is funded through user fees.

“There is more at stake than the $3.4 million Great Northern owes us,” said Morris.

The town has taken out a $2.4 million loan in anticipation of receiving tax revenues. It has not used any of the loan money, which must be repaid on June 30. Officials estimate they may be able to operate the town until April without drawing from the loan.

Officials said they expect to make more cuts.