JOHNSTON — Citing steep cuts in state aid and other lost revenue, Mayor Joseph M. Polisena has proposed a 4.9-percent tax hike for the fiscal year that starts July 1.

The increase will provide $2.9 million more in tax revenue and will help the town absorb a $3.5-million loss in state aid and a $900,000 reduction in revenue from motor-vehicle taxes, Polisena said Wednesday.

Despite the increased tax revenue, the town’s overall spending would decrease from about $94 million to $91.7 million. The town will continue to operate with fewer employees, and officials have secured $415,000 in concessions from unions representing municipal workers, public works employees, various Town Hall and library employees and police officers, according to Polisena.

“We shrunk our budget,” Polisena said, “but, unfortunately, the General Assembly has chosen to further cut the cities and towns.”

“I can’t get $3.5 million in concessions from the unions,” he added.

“The state budget is forcing all the cities and towns to increase their taxes,” Polisena said. “…They’re passing their bad budget onto all of us.”

The mayor’s budget proposal is subject to Town Council approval. A hearing is scheduled for June 29, Polisena said.

mreynold@projo.com