CONCORD — University System of New Hampshire officials asked lawmakers to give them time to decentralize services now in the chancellor’s office and move them to the four colleges.

System officials and trustees opposed House Bill 1692 Wednesday before the House Education Committee, saying they are working to make the system more efficient by making the individual colleges more autonomous and nimble in order to deal with the changing marketplace in higher education.

The bill, sponsored by Rep. Robbie Parsons, R-Milton, would eliminate the system’s chancellor office and move its duties and authority to the system’s board of trustees and individual college administrators.

The office would be eliminated by July 1.

Also sponsoring the bill are House Speaker William O’Brien, R-Mont Vernon; House Majority Leader D.J. Bettencourt, R-Salem; House Finance Committee Chairman Ken Weyler, R-Kingston; and former House Speaker and current Speaker Pro Tem Gene Chandler, R-Bartlett.

At Wednesday’s hearing, bill supporters said the university system needs to become more efficient as state resources become scarcer and students less able to afford tuition.

In the current budget, lawmakers cut state aid to the University System of New Hampshire by about 48 percent to about $52 million a year, which is the same amount of money the system received in 1988.

Weyler told the committee the cut was intended to send a message to the system that it needs to be more efficient.

Parsons said the chancellor’s office cost approximately $23.5 million in 2010. That is money that could go back into the operations of the four colleges to defray tuition costs.

He said some positions at the chancellor’s office are similar to those at three of the four institutions, and many of the services provided by the office are duplicated at the four colleges.

Parsons said that services, such as preparing bond issues, could more effectively be done through the state Treasurer’s Office.

University officials noted the board of trustees approved a resolution in the fall to direct the chancellor’s office and the board to develop a plan to reorganize the system with an eye toward enhanced independence, autonomy and self-governance for each college.

Under the resolution, a review and evaluation of the system-wide services will be conducted to achieve greater efficiency.

The resolution requires a progress report to the board by Nov. 7.

Board of Trustee Chairman Edward Dupont said the board is reviewing what services need to be in the chancellor’s office and in what volume.

“We would like the conversation to continue, and we would like to finish it,” Dupont said. “We have an obligation to come back to the Legislature and tell you how far we have come.”

He said if lawmakers are not satisfied with the progress, then someone should introduce a bill next session to move the system more in the direction legislators seek.

He noted trustees were not satisfied with the system’s human resources office, noting the individual colleges are handling more of the responsibilities.

“That is the model as we move forward,” he said. “These institutions will not continue to exist unless they are a lot more nimble than they are now.”

He noted two of the institutions are ready to stand alone now. “We, as a board, should get out of the way,” Dupont said.

Education committee member Rep. Rick Ladd, R-Haverhill, said some of the efficiencies may not be cost-effective and urged Dupont and the board not to do something that could increase tuition costs.

“Where I live, education is the only way out, and some of these students are not going (on to college) because of the cost,” Ladd said.

Dupont said the board’s first commitment is providing for the state’s students. “The reality is that this state has never adequately funded higher education,” Dupont said.

The House Education Committee will meet Tuesday at 3 p.m. to decide on its recommendation for HB 1692.