EAST GREENWICH — With the fiscal year not even at the halfway mark, the town is going to have to find $330,000 in budget cuts and find them soon, Town Manager William Sequino has warned the Town Council.

The only consolation is that East Greenwich isn’t going to be alone.

In August, Governor Carcieri announced that the state is so deep in debt, he may have to cancel payment of $32.5 million in fourth-quarter motor vehicle excise tax payments that go to cities and towns.

If the state keeps that money, the result would be a significant budget hole for every community. Cranston, East Providence, Johnston, North Providence, Pawtucket, Providence, Warwick and Woonsocket all stand to lose amounts ranging from $1.2 million to $5.7 million.

East Greenwich gets $333,861 per quarter from the tax, according to the state. That represents 0.7 percent of the town’s current $47-million budget.

The town avoided major cuts in its current budget, in part because employees accepted wage and benefit concessions. Municipal spending this year is actually 1.2 percent lower than the previous year.

If the governor carries through on the possible cuts that were announced in August when the projected state deficit was not as high as it is now, “we’re into truly downsizing local government,” Sequino said.

The council will begin looking at possible cuts at its regular meeting on Nov. 23.

Sequino said he believes the cuts need to be mapped out sooner, rather than later, because the earlier the budget can be trimmed, the greater the savings. Any state cuts can’t become official until after the General Assembly reconvenes in January.

“If I have to cut that much, part of it will involve layoffs and I have to do that now,” Sequino said. “I can’t do it in May and June, when we’re supposed to get the last quarter payment, because I won’t have enough money to recoup.”

Part of the cuts will have to be borne by the School Committee. School appropriations make up 68 percent of the town budget. Last year, when it struggled to keep its increase to 0.65 percent, the committee had to weigh scaling back some sports programs.

On the municipal side, Sequino said, the council will have to decide whether to fill a vacant police position. In addition, Juvenile Officer Lt. Thomas Joyce has announced that he will retire Jan. 4.

“If the council has any ideas that they don’t want a juvenile officer,” said Sequino, “I need to know that.”

gemery@projo.com