The tough economic times are forcing officials in cash-strapped Island towns to get innovative heading into the budget season. Town leaders are considering everything from four-day work weeks to replacing landscaping crews with grass-eating sheep — even to sharing resources with other towns, traditionally a hard sell on the Vineyard.

Officials in Oak Bluffs plan to auction off several pieces of land that were seized for failure to pay taxes. Chilmark employees are turning down the thermostat in town buildings, and officials have ordered energy audits from the Cape Light Compact to save money on heating and energy costs.

In West Tisbury, selectmen have agreed to cut their annual stipend in half to save taxpayers money. Selectmen in Aquinnah plan to use highway department staff to paint the fire station instead of hiring an outside contractor to save money. Tisbury selectmen are considering bringing in a part-time grant writer to identify new sources of state and federal revenue.

Meanwhile, Edgartown officials have placed solar panels on the school and highway department building, and are considering putting up a windmill at the town wastewater facility, also to save on energy costs.

Ron DiOrio, chairman of the Oak Bluffs selectmen, said town leaders have been forced to think outside the box when it comes to town finances. “We are looking to save a buck, anyway and anyhow,” he said. “If that means we have to do things differently, then we will do things differently. Nothing is off the table right now.”

Oak Bluffs selectmen plan to auction off four pieces of land seized in recent years due to delinquent property taxes. One parcel on Oak avenue has an assessed value of $250,300; one off Litton avenue is valued at $242,700; another off Eastville avenue is valued at $255,300; and a fourth is an unbuildable lot on the corner of Cedar and Oak avenues with an assessed value of $22,100.

The parcels are still being reviewed by the town’s tax title attorney, but could generate upwards of $800,000 for the town heading into fiscal year 2010, Mr. DiOrio said. But the town has already had to make some hard choices during the current fiscal year, making more than $307,000 in midyear cuts in the form of give-backs, money that will essentially go unspent in the various department budgets.

The cuts range from the minor, like a $500 give-back for hurricane supplies for the emergency management department; to the substantial, like a $50,000 give-back for road resurfacing for the highway department, and $40,000 in cuts in salaries for the town ambulance. Other give-backs include a $25,000 reduction in professional and technical services for selectmen, $35,000 for street lighting and $10,000 for postage, to name a few.

Mr. DiOrio said the midyear cuts did create some opportunities for creative financing, but were really a by-product of necessity.

“We had to come in with a balanced budget both this year and next year. . . that was not optional,” he said.

Oak Bluffs finance director Paul Manzi said the town also has built increasing projected revenue — from taxi and staging rentals, and from the Kennebec avenue parking lot — into accounts to balance the budget.

Like several other towns, Oak Bluffs has enacted what amounts to an indefinite hiring freeze for all town departments. This will create savings in the short-term while giving officials the opportunity to consider streamlining departments in the long-term, Mr. DiOrio said, which could call for combining or eliminating some positions outright.

Mr. DiOrio said town officials have even explored regionalizing services, resources and personnel with other towns and government agencies.

“If there are two people in neighboring towns doing the same job, why shouldn’t we at least think about cooperative agreements? We owe it to the taxpayers to explore ways to be more cost efficient,” he said.

Tisbury town administrator John Bugbee said officials there also are open to the concept of regionalization. The town already has explored rejoining the Martha’s Vineyard Refuse Disposal and Resource Recovery District, and there have been discussions about sharing resources for the animal control officer and other town departments.

Mr. Bugbee said department heads were asked to keep funding level this year, and officials have agreed to put off a number of spending articles, such as a proposal for the harbormaster to buy a new rescue boat. Meanwhile, officials have asked some employees to switch from more expensive health care plans to cheaper alternatives that offer essentially the same level of care at a substantial savings to the town.

The town also plans to replace some expensive street lighting bulbs, such as those at the Park and Ride parking lot.

Chilmark selectmen already have reviewed a spending plan that is less than the current budget of $6.7 million. The slimmed-down budget is the result of staff cuts and cost-cutting measures.

Executive secretary Timothy Carroll said some employees will undergo professional development that will help reduce insurance premiums and reduce the town’s liability. Employees are also being asked to switch health plans to save money.

Chilmark officials also agreed to increase the cost of building permits for larger structures, while the town police department has cut $20,000, eliminating a summer traffic officer.

Aquinnah selectman this year asked that departments come up with budgets under two scenarios, one that calls for level funding and another that calls for a 10 per cent reduction in spending.

“I think selectmen want options this year. They want to see where budgets can be cut and what effect those cuts will have,” said town coordinator Jeffrey Burgoyne.

The innovative budgeting is not limited to towns.

Steamship Authority general manager Wayne C. Lamson said the boatline has considered cutting back services and eliminating certain voyages if they are not necessary. Mr. Lamson said some trips still haven’t been put into the summer schedule, and officials will wait as long as possible until they commit to a full allotment of boat trips.

“We will only make changes where there are direct signs of a significant drop-off in demand. But we want to be in a position where we can save money while also providing the maximum amount of services to the Island,” he said.

Dukes County manager Russell Smith said the county, like most Island towns, will level-fund next year and forgo cost of living adjustments for employees. County officials also plan to ask some employees to switch from a 90/10 split for health care costs to the more widely accepted split of 75/25.

Mr. Smith worked with the RM Packer Co. to renegotiate the fuel contracts for all the Island towns and several agencies, which translated to a net savings of approximately $300,000.

In West Tisbury, selectmen agreed to reduce line items for legal services. Selectmen also cut their own annual stipends from $5,000 to $2,500. This will result in a net savings of $5,000, as chairman Jeffrey Manter is a town police officer and does not receive a stipend.

Selectmen there will take hard line on delinquent motor vehicle excise taxes, agreeing to place a letter in all tax bills alerting taxpayers the town will start enforcing an existing bylaw banning anyone who owes delinquent excise taxes from receiving town permits.

Al Devito, chairman of the town finance committee, described town cost-saving measures this year as more common sense than innovative. West Tisbury selectmen recently entertained the idea of saving $300 by replacing a landscaping crew with several sheep who would presumably mow, or more accurately munch, the grass for free. The idea was discussed briefly and then tabled.

At that same meeting, town accountant Bruce Stone announced some good news. Two years ago, in a similar spirit of innovation, Mr. Stone filled out some paperwork to include the town in a class-action lawsuit aimed at companies that sent out unwanted solicitations, or spam, through office fax machines.

Out of nowhere last month, Mr. Stone announced, a check arrived in the mail for $350, which was the town’s share of the class-action settlement. “It took ten minutes to fill out the paper work, and it got us $350,” Mr. Stone said proudly. “And every $350 counts right now.”