WESTPORT — Westport was recently told by the Massachusetts Department of Revenue that an accounting practice approved by the state for the past few years is no longer acceptable and that the town actually set this year’s budget almost $200,000 higher than it should be.

The budget must now be cut by that amount. Adding to that, the town expects to receive some cuts in state programs and to run into deficit in its snow and ice budget this winter, creating a potential $600,000 budget hole.

DOR has approved in past years the town’s practice of including reimbursements from the state’s school building assistance program into the budget for debt service reserves. But now DOR says the town must account for those reimbursements separately. Since this also occurred in last year’s budget, DOR has adjusted the town’s free cash account so that there’s no more left for the rest of the fiscal year. The town must also make up $195,912 in cuts from this year’s budget so that DOR does not cut free cash again next year.

Town officials had been bracing for state cuts that they thought were coming this week, because the state needs to close an estimated $600 million shortfall in revenues. But local aid and school aid were not cut. Instead, the town may be hit by other proposed state cuts in special education, library grants, payments on state land like Horseneck Beach, and a police program. Until those cuts are made, the town does not know how much trouble it is in.

And even before the first snow, town officials figure they don’t have enough budgeted to pay for preparations and plowing for even one storm. The town budgets $69,635 each year in the snow and ice account of the highway department. Last winter, snow storms cost the town $379,490, so officials had to use $310,000 from free cash to make up the rest. And for the three years prior to that, the town has incurred between a $100,000 and a $193,000 deficit in that account.

At the Selectmen’s meeting on Monday, Town Administrator Michael Coughlin said the town is considering a number of options to prepare for what he said could be up to $600,000 in deficit and cuts for this year.

Last month, Mr. Coughlin said he would take nine furlough days, saving the town roughly a little more than $3,000. Selectmen took up this idea as well, and on Monday said they would cut 3.6 percent from their stipends, which collectively amounts to about $838.

“The selectmen hope this prompts a conversation among other elected and appointed officials who receive a stipend,” Mr. Coughlin said.

In dealing with the highway department budget, Selectman Paul Schmid and a member of the finance committee have been working with Highway Surveyor Harold “Jack” Sisson to improve the highway department’s operation with some of the suggestions from a recent audit of the department. One of those recommendations, Mr. Coughlin said, was to bring in a “professional mentor to advise (Mr. Sisson) on more efficient practices and to come up with a town-wide snow-and-ice-removal plan” to better manage the account or find areas where there may be savings.

Selectmen also approved Mr. Coughlin’s recommendation to review all 126 town-owned properties to see if any may be “good candidates” to sell. A five-member committee with a member of the selectmen, finance committee, board of assessors and an at-large community member will start this process.

But first Mr. Coughlin said the town should cut $300,000 from the budget — by the amount DOR says the budget must be adjusted and another $100,000 in preparation for state cuts. A Special Town Meeting will be held on Dec. 1 at 7 p.m. at Westport High School to adjust the budget.

If any further cuts need to be made because of state cuts or a deficit in the snow and ice account, the budget will be amended at the annual Town Meeting next May.