Town Administrator Derek Sullivan has proposed a plan to help Wareham tuck funds away for emergencies.

Faced with a cash-strapped budget, but needing to find a way to fund the town's "stabilization fund," which is earmarked for unexpected expenses, Sullivan has asked the Selectmen to create a policy that uses the town's "free cash" for that purpose.

"Free cash" is comprised of the money not spent during a previous year's budget, or unexpected revenue from another source.

Towns typically put money into the stabilization fund though their yearly operating budgets, but as Sullivan explained: "The Town of Wareham's expenditures continue to outpace its revenue," meaning that there simply isn't any extra funding to stash away.

Sullivan proposes that if the town has $200,000 or more in free cash at the end of the year, the town transfer at least $100,000 to the stabilization fund.

If the town has less than $200,000 at the end of a year, Sullivan suggests that 50% of the total be transferred to the stabilization fund.

Any transfer would have to be approved by Town Meeting voters.

Sullivan suggests that any free cash that remains after transferring money to the stabilization fund be used to pay for "capital" items -- big-ticket purchases such as vehicles, as well as building repairs and other large expenses -- in full.

If OK'd by the Selectmen, Sullivan's proposal may quell concerns repeatedly expressed by the town's Finance Committee and Capital Planning Committee in recent years. Both have worried about the town's lack of planning for emergencies and inability to pay for the regular replacement of equipment and upkeep of buildings.

The Selectmen held off on a vote on the policy on Tuesday, as members Steve Holmes and Judy Whiteside were absent.