During a hurried yet busy meeting on Wednesday, Oak Bluffs selectmen discussed the ongoing budget crisis, approved a new entertainment license for Deon’s Restaurant on Circuit avenue and discussed the possibility of joining with Vineyard Haven to create a combined police department to cut costs.

Several selectmen during the meeting broke away to take calls on their cell phones about a possible visit to downtown Oak Bluffs by President Obama. As a result of the presidential dining party’s visit to Sweet Life Cafe, the meeting was subsequently brief by town standards, wrapping up in around 90 minutes.

Selectman Kerry Scott raised early in the meeting the subject of current budget shortfall, estimated at nearly $800,000 over two fiscal years. The town ended the fiscal year on June 30 with a deficit of $300,000 and is already facing another $500,000 shortfall in the fiscal year that began less than two months ago.

Early retirement has been offered to town employees, but there have been no takers, and a hiring freeze is in effect. Town administrator Michael Dutton announced last week the town must lay off five full-time employees and make deep cuts to the elementary school budget to balance the budget.

Ms. Scott said several residents have asked her why the town got so deep in debt, and also have asked specific questions about the looming layoffs.

“And I’m at a loss to answer some of these questions,” she said. “There is so much anxiety surrounding these layoffs, especially from the family members of town employees.”

Mr. Dutton said the layoffs would be discussed later in the evening during an executive session concerning the collective bargaining agreement between the town and its employees’ union. Mr. Dutton said details about that executive session should be released in the coming days.

Chairman Gregory Coogan said he has received supportive feedback from residents regarding the budget.

“Mostly what I am getting is sympathy from the people who don’t want to be in our shoes,” he said.

“Well, I am getting more specific questions,” answered Ms. Scott.

Later in the meeting selectman Kathy Burton suggested a joint meeting between all town boards and committees during which officials could come up with a list of ideas to generate revenue and cut costs.

Selectmen also discussed a street musician who performs several nights a week in Healey Square between Circuit and Kennebec avenues.

Mr. Coogan said the musician, who was not identified, has drawn complaints from merchants who feel his music is too loud. “There is no doubt this guy is talented . . . but what happens if someone like me decides to play music; people would run out of town with their hands over their ears . . . we have to establish some rules,” he said.

Selectmen agreed to form a subcommittee to draft a new policy with guidelines for street performers; they also agreed to have police talk to the performer at Healey Square about lowering the volume.

Mr. Coogan also raised the prospect of a joint police force between Oak Bluffs and Tisbury. Last week Tisbury selectmen discussed the possibility of sharing resources between the two police departments, which could include sharing a police chief or combining the two departments outright.

Mr. Coogan said consultant Robert Wasserman, who was hired by Tisbury to study the town police department after the rocky departure of its former police chief John Cashin, supported the concept of combining the two departments.

“I asked [Mr. Wasserman] to look into the possibility of a single department. And apparently he has come back to [Tisbury selectmen] and said the idea has real merit,” he said. “I think Tisbury is excited about it; he thinks it’s not such a bad idea.”

Mr. Coogan said the two towns will wait for Mr. Wasserman’s final report before taking any formal action.