After nearly two hours of debate, Town Meeting Tuesday approved a $51 million budget for fiscal year 2012 which uses funding for operational expenses that otherwise would have been saved for employee health insurance costs.

To help close a budget gap, the town will take a one-time, three month long "healthcare premium holiday," meaning the town and its employees will not pay into the trust fund used to pay insurance claims.

Under a self-insurance plan, the town and employees pay premiums into a trust fund. All health claims are paid out of the trust fund, with insurance companies involved only in claims processing. Unlike a traditional insurance plan, the town saves money if claims cost less than expected.

The town contributes 75% of the premiums while employees pay 25%. The town will save roughly $1.4 million by taking the holiday.

The fund currently has more money than is recommended, said Town Administrator Mark Andrews, noting that he has a letter from the state Department of Revenue indicating that the town is permitted to take a premium holiday.

Many voters expressed concern about the risks associated with taking the holiday, including the potential for the account's funds to dwindle if employees are sick often. Voters also noted that the gap in the budget would still remain next year.

"This is a dangerous path to follow," said Selectman Cara Winslow. "A healthcare holiday is a one-time only solution to a problem that's not a real solution, because the problem's not going away. It's going to be here next year and we're not going to have the healthcare trust fund to dip into."

Selectman Steve Holmes noted the potential for the town to be on the hook for a lot of money if employees come down with catastrophic illnesses, which insurance covers up to $100,000.

"If 10 people had a catastrophic illness, we're on the hook for a million bucks in this town. If that money is not available in this fund, we have a legal responsibility to take care of these people," said Holmes, who works in the healthcare field.

But supporters of the budget argued that the money is needed to balance this year's budget and town officials are aware that its use is a one-time, temporary fix.

"We know the cash is there," said resident Ed Pacewicz. "Instead of leaving the money sitting there doing nothing, let's get some use out of it ... and get [the budget] balanced."

Selectman Ellen Begley noted the fix would give the town some time to decide what cuts must be made in next year's budget without having to make cuts in haste, as it would this year if the healthcare trust fund money were not used.

"We have to react to the situation," she said. "This would buy us a year to be intentional about cuts, to be intentional about services that need to be cut."

The budget was ultimately approved by a majority vote.

Wages in the Police Department also caused debate among voters.

The budget discussion opened with the Finance Committee, which Monday asked that the budget vote be delayed until June, suggesting an amendment to the budget which reduced the Police Department wages by $128,500.

Members of the Finance Committee argued that the money, along with $30,000 from an account used for street lights, be added to a reserve account to pay for unexpected emergencies.

Finance Committee members explained that the $128,500 was only added to the budget after April Town Meeting approved an increased meals tax paid by diners at restaurants.

"Three weeks ago we had a budget that didn't have [that] money in it," Finance Committee member Marilyn Donahue explained. "You're looking at a reduction in numbers. We're looking at it as an increase over last year's [Police Department budget] of more than $500,000."

Donahue explained that there is always an excess of money appropriated to street lighting, so a cut would not cause the town to have to shut any lights off.

Police Chief Richard Stanley argued that he needed the money to pay for patrols and the wages of new cadets.

"This [proposed] budget is going to kill us. It's going to take summer specials [patrols] out. It's going to reduce shift coverage," Stanley said. "Gang issues are up in this town and we need to step on it. Step on it hard."

Voters were also not supportive of the Finance Committee's proposal.

"I have seen changes" since Chief Stanley's arrival, said precinct six resident Donna Ashley. "I want to see that continue. ... What matter is to keep the Town of Wareham safe and to support our police officers."

The Finance Committee's amendment failed.

Many voters left after the budget passed, leaving Town Meeting without a quorum. Town Meeting adjourned until Tuesday, May 31 at 7 p.m. in the Wareham High School auditorium.