Unless the state can raise the additional money necessary to secure $475 million in available federal matching funds, the Department of Transportation budget will see severe cuts, Governor Jennifer Granholm proposed in her 2010-11 budget recommendation.

Ms. Granholm in her State of the State address endorsed the recommendations of the Transportation Funding Task Force, which would change the gasoline tax from a fixed amount of money per gallon to a percentage of the wholesale price of the gas. Some legislators are working on a different plan to raise the existing gasoline and diesel fuel taxes.

Sen. Bill Hardiman (R-Kentwood), chair of the Senate Appropriations Subcommittee on the Department of Transportation, said he wants the state to ask the federal government to relieve it of its obligation to provide matching funds. A bill to this effect is moving through Congress.

"It's a very difficult time to raise taxes period because there's such an economic downturn right here," he said.

Rep. Lee Gonzales (D-Flint), chair of the House Appropriations Subcommittee on the Department of Transportation, could not be reached for comment.

Keith Ledbetter, director of legislative affairs for the Michigan Infrastructure and Transportation Association, said his group hopes that the governor's budget serves as a wake-up call to lawmakers.

"We've been warning for a couple of years is this is coming," he said. "Really, we're seeing pretty draconian cuts with the inability to match federal aid."

Mr. Ledbetter said officials are sending some momentum after meeting with lawmakers this week with members of both parties telling the group's staff they realize something must be done to both match the available federal aid and stabilize the state's transportation funding.

"It's encouraging what we've been hearing so far," he said.

The MDOT budget contains $2.76 billion (all restricted funds). That would be a 15.3 percent decrease from the 2009-10 fiscal year.