WINDHAM – The Windham Town Council Thursday night approved a $13.78 million municipal budget for next year, which represents a zero increase over this year’s budget.

After about four hours of debate and a series of amendments proposed by councilors Matthew Noel and John MacKinnon, the board cut another $140,000 from what the town’s finance committee had proposed last week.

Highlights of the revised budget, which now goes to voters at annual town meeting Saturday, June 18, at 9 a.m. at the town hall, includes revoking a proposed 2 percent cost-of-living-increase for non-union town employees, reducing police overtime by $50,000, cutting $10,000 from the Windham Economic Development Corporation, and cutting the highway maintenance supervisor at public works.

A large portion of the $140,000 cut Thursday night was from the town’s ever-increasing general assistance account. Towns are mandated by law to pay for welfare recipients, although the state reimburses about half of what towns spend. In recent years, Windham has seen much higher costs and this year is on track to spend $475,000.

In an effort to reduce those costs, which councilors said are impacted by the greater economy and lack of oversight on the local level and accounting mistakes, the town will no longer contract with People’s Regional Opportunity Program, whose hourly rates are increasing from $36 to $48 a hour to manage town’s general assistance. Instead, Windham councilors voted to hire a GA administrator and by doing so are estimating the town will save at least $175,000 next year.

Council Chairman Scott Hayman, the deciding vote, said the proposition is a “gamble” but with revenue projections estimated to move higher in 2012 and the town having more direct oversight over the account, he felt the town could afford the risk.

Other notable amendments, which all passed unanimously, were the restoration of $20,000 of hours at the Windham Public Library, giving the Windham Historical Society an $8,000 increase (up from $2,000) to $10,000 in support, offering a new watershed-protection grant program for lake associations (namely Little Sebago Lake Association, which has requested more money in its fight against milfoil in the lake), and restoring the $10,500 for subsidizing low-income families for the Windham Parks and Recreation day camp.

Notable failed amendments Thursday night included an attempt to reduce the incoming GA administrator’s hours from 36 to 24 a week and the reduction of the Windham economic development director’s hours from 40 to 24 a week.