Wiscasset could cut its projected 27-percent tax hike to less than 10 percent, if voters take the selectmen and budget committee up on an offer to tap the town’s reserve fund.

Buoyed by successful investing in recent years, the fund now stands at nearly $12 million, Interim Town Manager Don Gerrish said. The two panels on May 8 gave Gerrish their support to let voters consider taking up to $1.25 million from it to reduce taxes. Capping the amount would prevent a town meeting decision to take more from the fund, Gerrish said.

He suggested tapping the fund, to soften a tax hike largely stemming from the school budget for the town’s first year outside Regional School Unit 12.

“This is a unique situation you have in this community,” Gerrish said. He called a 27-percent tax jump unfathomable and unacceptable.

“That ... is going to be devastating,” budget committee member Ray Soule said about the single-year surge.

Taking $1 million from reserve would lower the hike to about 13 percent; $1.25 million brings it down to 9.8 percent, Gerrish said.

He pressed the selectmen and budget committee members at length to reach a decision, so that residents taking part in a May 14 school budget meeting would know if the May 31 town meeting could result in the tax offset.

Gerrish polled the panel members one by one and got their unanimous support for the $1.25 million proposal.

School Committee Chairman Glen Craig said in an interview that the decision to give town meeting voters that option will help keep the school budget largely in tact at the May 14 meeting and help it get approved at the polls on June 10. During Thursday’s workshop, he cited the school committee’s commitment to consolidating to two schools, beginning as early as year two.

“This is a one-time, in-your-face shock,” Craig said about this year’s $9.4 million school budget proposal that would require $6.9 million in property taxes.

Residents should bear in mind that the town’s reserve fund is linked to market value, so its size  can change, said Steve Mehrl, chairman of the town’s investment committee.

Views among selectmen and budget committee members were mixed on whether to consider the withdrawal a loan to pay back over several years. That would be a decision that could only be made each year, Gerrish said. Some members of the two panels argued repayment would restore money that could be making money in the reserve fund; others said the tax crunch is a rainy day that’s a suitable use of the fund, and the money shouldn’t have to be repaid.

Selectmen and the budget committee planned to meet again on Tuesday, May 13, to take another look at about $471,000 in proposed capital improvements. The workshop starts at 6 p.m. at the municipal building.