Schools Chancellor Joel Klein yesterday rolled out plans to cut $200 million in administrative costs and to expand a little-known program that requires principals to meet certain goals or face being fired.

In outlining his goals for the next four years, Mr. Klein said he wants to redirect $200 million from central and regional administrative budgets into city schools.

He also highlighted plans to add 150 schools to the “autonomy zone,” a pilot program of about 60 schools across the city that are exempt from the mandated curriculum and teacher-training rules.

In exchange, principals who opt into the program have five years to meet certain benchmarks, including increasing attendance rates to 90% and four-year high school graduation rates to 70%.

The goal of the program, which launched quietly in September 2004, is to hold principals more accountable for student performance.

At the helm of the autonomy zone is Eric Nadelstern, a former principal who is in charge of the city’s new-school program. Mr. Nadelstern, however, could be leaving soon: He is one of two candidates up for the position of superintendent of the Clark County schools in Las Vegas.

The president of the United Federation of Teachers, Randi Weingarten, said she wasn’t surprised by the chancellor’s decision.

“Autonomy zone schools have increased authority over decision-making and have fostered a far more collaborative relationship between teachers and principals than exists in schools outside the zone,” Ms. Weingarten said.

Principals in the zone report directly to Tweed and are exempt from attending many regional meetings. Mr. Klein said principals need to be empowered and should not be burdened by rules and requirements.

Officials from the principals union said they are eager to see the details and pressed the chancellor to negotiate a contract.

“The chancellor has made it clear that he believes effective school leadership is a central pillar of the school system,” the executive vice president of the principals union, Ernest Logan, said. “We couldn’t agree more, and that is why school leaders need a contract now.”

The Department of Education is in the process of determining which 150 schools will join the autonomy zone in September.

The city plans to spend $5 million to hire a team of consultants to help determine where the $200 million can be cut from the administrative budget. In 2002, City Hall asked the Department of Education to trim $200 million from its $15 billion budget. Those cuts were made in part by firing more than 100 employees. Mr. Klein said there could be some layoffs this time around, but declined to say where.