The 2009 budget introduced Tuesday evening by the Board of Trustees contains a 17.5 percent municipal tax hike, but the months-long process starting now of revising and trimming the budget will result in a much lower figure, according to officials.

The amount to be raised by taxes in the current budget is about $22.9 million, but the Trustees are already contemplating $1.8 million in further trims that would reduce the tax increase to 8.5 percent, according to Village Administrator John Gross in a presentation. On the table are reduced energy expenditures and other expense savings, but the biggest savings would come from the proposed layoffs of 14 Village employees, which would have a $1.1 million impact. However, the Village is currently in negotiations with its five unions to make layoffs a last resort.

"It's the Village's intention to work with the unions to negotiate settlements that would avert layoffs, or, at least, reduce them," said Gross.

Last year's budget was introduced around the same time but was only approved in September, since the Village was awaiting news of extraordinary aid from the state, according to Village President Douglas Newman, who said South Orange had received $600,000 from New Jersey in 2008 and $500,000 in 2007.

In other business, the Trustees approved a resolution to opt into the employee pension deferral plan signed into law by Gov. Corzine to help cash-strapped municipalities navigate their finances. Under the law, towns can defer up to half of their required pension payments for this year, and South Orange's anticipated savings is $1.15 million. Repayment can take place over a 15-year period.

The savings amount to a difference of 6 percentage points in the tax increase, said Gross.