OCEANSIDE, Calif. -- The board of the North County Transit District agreed Thursday to consider outsourcing its bus operations.

The NCTD board voted to authorize the issuance of a request for proposals for a private contractor who would handle bus operations and maintenance for the next seven years.

NCTD officials said hiring a firm to handle bus operations is needed in light of the state's decision to eliminate funding for transportation over the next five years.

"The decision today was not easy, but reflects the board's desire to provide the highest level of service to our customers," said Bob Campbell, chairman of the NCTD board.

"As we move forward, we will continue to review all of our business activities with a focus on reducing costs and increasing ridership," he said.

According to the NCTD, the state's decision to eliminate transit funding resulted in a loss of $10.5 million annually and, combined with the downturn in the economy, means the NCTD faces a deficit of about $19 million.

Outsourcing bus operations and maintenance would save the NCTD about $12 per hour of vehicle service, compared to keeping operations in-house, according to a report to the board.

A final decision on outsourcing is not expected until later this year.