The city of Portland has taken its first look at its 2015-2016 budget, and there’s not a lot to like. It would lay off 13 employees and raise taxes by 2.9 percent to make up for the $10 million it stands to lose from cuts in state aid – primarily a result of changes in General Assistance eligibility standards.

The budget, prepared by city staff, would also phase out assistance for families and individuals who are legally present in the country, but are prohibited from working while their application for political asylum is moving through a crowded court system.

This kind of budget is not the result of out-of-control spending or a downturn in the economy. This is a dispute over the extent of Gov. LePage’s power, and Portland taxpayers are caught in the crossfire.

The problem is that Portland, like other service-center communities, is delivering what amounts to a state program, using city employees to distribute aid that comes from state and local sources. While the General Assistance statute assumes that every needy Mainer will be able to go to his own town hall for help, that’s not the way it has worked for a long time. Because rental housing and social service agencies are clustered in the cities, they have become the destinations for poor people.

LePage declared that he would deny any services to immigrants he considers “illegal,” a group that in his mind includes asylum seekers who are waiting for their day in court.

Attorney General Janet Mills offered a legal opinion that said the governor could not make that kind of a change in the law without legislative action. LePage went ahead and did it anyway, having the Department of Health and Human Services withhold all GA funds from cities that don’t comply, whether the funds were meant for asylum seekers or not.

The dilemma for the cities is whether they should defy the governor, or obey him and expose themselves to a lawsuit for violating the constitutional guarantee of equal protection.

This fight is going to cost Portland a lot. Taxpayers are going to have to pay more for fewer services. City employees are going to have to stretch themselves a little thinner. And families dropped from the General Assistance rolls will have to struggle without vouchers for rent or food during the time they are legally prohibited from working.

This is not the kind of budget that anyone in Portland wants, but it is what the governor’s policies demand. Until there is a decision from the courts, the city will have to defend itself.