A budget referendum is being held in New Milford today. Residents are deciding on a $38.3 million municipal plan and $63.3 million for the school. The combined $101.6 million plan is about half a million more in spending than the current year. It would result in a 3.87 percent tax increase. In an effort to offset some of a tax increase, some $1.2 million dollars will be used from the undesignated fund. The fund would have about $16-million left in it after this allocation.