WASHINGTON -- Transportation Secretary Mary Peters says a major federal highway fund will run out at the end of the month and that could be bad news for the future of Ohio highways.

Peters blames the shortage of funds on the hig price of gas and Americans driving less. It's an alarming downside of the American "staycation."

Americans drove 40 billion fewer miles from November to May. That's good news for the environment and the cost of fuel, but it's bad news for Ohio roadways.

Scott Varner, spokeperson for the Ohio Dept. of Transportation, said much of Ohio's transportation funding comes from the Federal Highway Trust Fund. That fund relies on revenue from federal highway taxes.

The Federal Highway Administration estimates it will amount to a 34 percent cut in federal highway programs in fiscal year 2009. The resulting effect would be an estimated loss of $350 million in federal funds for Ohio in fiscal year 2009. The cuts could also cost about 12,000 Ohio jobs.

The costs to build are adding to the state's obstacles. According to Aashto, the American Association of State Highway and Transportation Officials, in the past five years, the cost of concrete shot up 36 percent; asphalt is up 70 percent; steel is up 105 percent, and diesel to fuel the equipment is up 300 percent.

"It means that many projects in the pipeline are going to be stopped," said Tony Kane, the director of Engineering for Aashto. "It means that states are going to be telling construction contractors 'Forget it, there's no jobs this year.'"

Varner said the DOT hasn't made any decisions on what will be cut, however the next two phases of I-75 improvements through Dayton are relying on federal dollars.

Right now the Ohio DOT is waiting for the final word on the federal trust fund's shortfall. Sec. Peters is pushing a measure working it's way through Congress that could put an additional $8 billion dollars to shore up the fund. It has passed the House and the Senate may pick it up when Congress resumes next week.

Kane said even if it does pass, the federal government needs to figure out more permanent solution for highway funding in the future. "It's a real bandaid. It's a short term fix. It's going to get us through this fiscal year but next fiscal year its going to be the same thing."