"We asked the director to put forth a bold plan of action to address our transportation funding crisis, and he delivered," commission Chairwoman Grace Nichols said in a statement. "We don't like having to head in this direction, but the reality of our funding situation makes it necessary."

For the past five years, Missouri's state highway construction program has averaged $1.2 billion a year. Wednesday, MoDOT presented a new, five-year construction program to the commission that is only half that amount -- about $600 million a year.

"We are facing a transportation funding crisis in Missouri," Keith said in a statement. "Over the past year, we have worked hard to reduce the size of our workforce and cut costs, but it isn't enough. We must take further action to become the right size to serve our customers given the severe reduction in funding for transportation."

The department's plan includes reducing the number of its district offices, which administer the state's transportation program at the regional level, from 10 to seven. MoDOT's current district boundaries have been virtually unchanged since 1922, when many state roads were still gravel and MoDOT used mules and wagons.

MoDOT plans to close its district offices in Macon, Joplin, and Willow Springs, but will continue to maintain area offices in those cities and have a strong presence in every county in the state, Keith said.

"We don't like having to do this, and we aren't proposing these changes lightly, because we know they will be personal and painful for many people, but heading in this direction is the right thing to do," Keith said. "It's what we have to do to survive. Without these actions, Missouri would lose millions of dollars in federal funds for transportation" by lacking the required state matching dollars.

MoDOT will hold community briefings throughout the state over the next month to explain the downsizing plan. The commission is expected to act on the proposal at its June 8 meeting. If approved, the recommendations would be fully implemented by late 2012.