Industry and government transportation leaders are warning that a dramatic drop in Michigan road funding next year will result in steadily deteriorating highways and the loss of thousands of construction jobs in Michigan.

Because of declining fuel tax revenues and the completion of a state transportation bond program, spending on Michigan road and bridge repairs will decrease by $300 million, from $1.6 billion in 2007 to $1.3 billion in 2008. Without a fresh infusion of cash, funding will level off following another $100-million reduction in 2009.