"We had an annual budget of $1.2 billion, and now it's down to $600 million," Keith said.

That funding shortage was predicted a few years ago by former Missouri Transportation Director Pete Rahn, who described how annual operational funds would "fall off a cliff," the Quincy Herald-Whig reported.

Keith said the new part of his message is that unless there are changes, funding will not be sufficient to match federal transportation dollars in a few years.

"We know that by 2017, we cannot match federal funds," he said.

To delay that crisis, Keith said MoDOT has reduced its payroll by 300 workers in the past year. The agency has cut back on stockpiles of salt, gravel, and other materials. Roadsides are being mowed less often; center stripes and lane markers will be repainted less often.

The savings amount to $74 million so far, but it will take $300 million over five years to keep the Missouri Department of Transportation on track to reach its goal through the end of 2016.

Keith said the state must put up about $1 for every $4 it receives in federal highway money. Under current funding levels, the state will have to turn away $453 million in 2017. Keith said state funds could fall below $300 million that year.

Bill McKenna, a former chairman of the Missouri Highways and Transportation Commission, wants to avoid that crisis. A retired state senator, McKenna has spoken at more than 100 meetings statewide as a spokesman for the Missouri Transportation Alliance.

The alliance will hold meetings across the state during the next few months to seek solutions from residents, business owners, and civic leaders.

Other states are facing similar problems in ensuring enough state highway funds are available to match federal dollars. Michigan stands to lose $475 million in federal highway funds if it can't come up with an additional $87 million in state matching dollars, according to a report released last May by the Michigan Chamber of Commerce. (see May 28 AASHTO Journal story)