PROVIDENCE, R.I. — A plan to use First Student as a statewide contractor and ending a requirement for school bus monitors could save Rhode Island millions of dollars under a mid-year budget proposed last week by Gov. Donald Carcieri.

The budget proposes $240.3 million in cuts to close a projected $357 million deficit, and it adds $24.1 million in new taxes and $93 million in one-time revenue deferrals, the Providence Business News reported.

One provision of Gov. Carcieri's pending budget would bar school districts from renewing or negotiating any new contract. Instead, at the end of current contracts, all districts would be served by one contractor under a statewide bid. The handful of districts that run their own transportation system would be allowed to continue to do so.

Meanwhile, Carolyn Dias, the director of finance for the state department of education in charge of implementing the state school bus plan, said First Student won the initial contract for the state-wide service. A separate request for proposal has been released for system and routing management.

The eventual implementation of the transportation system would save between $3.5- to 5 million during an initial phase that would include only special needs and out-of-district service, and an additional $8- to 10 million once all districts served by contractors are on board.

Dias said officials were still looking into the savings from a second element of the budget that would end a requirement for monitors on school buses transporting students in kindergarten through fifth grade. However, with 60 to 70 percent of districts reporting, the state could expect $12.2 million in savings.

Other areas under the budget ax include public employee pension plans, which eliminate the cost of living adjustment for retirees, school construction and more than 490 vacant jobs.