PEABODY – Peabody Mayor Michael Bonfanti took a slight detour during Tuesday night’s School Committee meeting when the discussion went from a brief summary on contract negotiations to the possible elimination of the state income tax.”I would like all departments to rework their spending plans for FY 2009 and to plan to reduce their budgets by a minimum of 5 percent,” Bonfanti read from a letter addressed to all city department heads. “Given the fiscal uncertainty our nation, state, and city face, I want Peabody to be prepared for the worst.”Bonfanti urged the audience to vote against the question on the November ballots authorizing the removal of the state income tax. He said that if it passes, Peabody will lose upwards of $12-15 million, an amount he equated to both the fire and police department’s annual budget.”I’m asking people to think when they vote,” he said.School Committee members Dave McGeney and Ed Nizwantowski supported Bonfanti’s preemptive planning regarding higher energy costs and reduced state aid.”We have to be realistic and prepared for it,” said McGeney. “It would be absolutely devastating.””I have to throw my hat at you for fiscal responsibility,” said Nizwantowski. “If it passes, the government is just going to whack you in another way?If they don’t get you with income tax, they’ll get you in another way.”Bonfanti went on to say that energy costs continue to rise higher than what the city expected for FY 2009 and the elimination of state aid through the loss of income tax would be troublesome for all cities in towns across the state.In order to prepare for the worst, Bonfanti announced that he will be organizing a subcommittee to look at redistricting the city and possibly closing and consolidating the schools. He would expect the committee to be made up of nine individuals, including the Superintendent, School Committee members, parents, teachers, principals, and transportation staff.”I don’t want to frighten people,” he said, adding that the plan would be just that, a plan. If the need to close a school didn’t arise, then the plan would be done away with.”If we have to make tough decisions, I want to be prepared,” he said, later apologizing for being the “bearer of bad news.”If it turns out that State aid is not reduced, Bonfanti said the city would reevaluate any cuts that were made and help restore programs that were put on hold.”I know this is a difficult thing to ask, but we will be better off as a city and be in a better position to manage if we are proactive now rather than reactive later,” he said.