TIVERTON — The School Committee last night complied with a $100,000 cut imposed by the Financial Town Meeting in its budget for the next fiscal year, mostly by eliminating the position of a middle school guidance counselor which is now vacant.

Unlike its counterpart in neighboring Portsmouth, the School Committee here chose not to budget a projected $116,000 increase in state aid to education that would be generated by an expansion in gambling recently approved by the General Assembly.

Schools Supt. William J. Rearick told the committee that the state Department of Education has advised school districts to not to count on the revenue, warning that they could end up with deficits if receipts do not materialize from overnight gambling at Twin River.

Rearick advised that the gambling revenue should be used for one-time expenses in the next budget.

With a bottom line of $25,156,129 approved by voters, the School Department is heading into the next fiscal year on a tide of uncertainty over the way that spending plan will play out, primarily due to unsettled labor costs affecting at least 70 percent of the budget.

Teachers have been working without a contract for a year, and administrators’ salaries are linked to any settlement the School Committee makes with teachers — whenever that may be.

In addition, the School Committee’s contract with support staff, members of the American Federation of State County and Municipal Employees, is about to expire. Negotiations with AFSCME are under way.

The committee has requested nonbinding arbitration, which was originally scheduled for the beginning of May but was postponed until next month, so that the committee would have a firm fix on state and local revenues.

There was a 3 percent across-the-board increase figured into the budget year, which is now ending and a 2 percent raise in the next fiscal year.

At the same time, the School Committee has sought to increase teachers’ contributions to health insurance by about 8 percent over two years, from the 10 percent in effect at the end of the 2006-07 fiscal year to 18 percent in the 2008-09 budget.

The labor issue is likely to figure in the November election.

With the deadline at 4 p.m. for candidates to take out declaration papers, School Committee vice-chairman Michael Burk announced that he plans to run for Town Council rather than seek another term on the board.

Burk was appointed six years ago to fill an unexpired term and was elected in 2004. He said he has enjoyed serving on the School Committee but believes he can have a greater impact on the council.

The middle school guidance position, which was eliminated, last night accounted for $93,917

The committee also cut the position of a part-time special education teacher’s assistant, saving $4,586, and reduced student supplies by $1,497.

Previously, it had cut the jobs of three other special education teaching assistants and eliminated the position of the middle school math and literacy teacher.

Last night, 39 teachers who had received layoff notices were recalled for the next school year. Three teachers have not been recalled and are unlikely to return, according to Rearick.

gmacris@projo.com