The State Department of Transportation will use a $93 million loan to widen a dangerous, 6-mile stretch of U.S. 17 through Beaufort County but still doesn't have the money to pay it back.

The state renewed plans for the $221 million widening of 22 miles of U.S. 17 following a March 2004 Navy bus accident that killed three sailors near Big Estate Road. Thirty-four people have died since 1997 on the two-lane stretch from Gardens Corner to Jacksonboro in Colleton County.

The state had pinned its hopes on a $138 million aid application that was rejected this month by the State Infrastructure Bank, a state program that provides financing for large road projects. Instead, the bank board offered a $93 million loan to widen the 6 miles through Beaufort that the Transportation Department considers the most dangerous stretch.

"What we haven't got worked out is how we're going to pay for it," said John Hardee, Beaufort's Transportation Commission representative.

The department has $74 million for the project, $19 million short of the money needed to pay back the loan. The commission has scoured department sources, but limited federal dollars has made spending tight this year.

"The money is allocated to other areas," Hardee said Thursday following a commission meeting. "If we took that money, every one of those (projects) would be affected."

The department also is hoping to secure additional money to purchase the right of way necessary for widening the full 22 miles before work on the first phase begins, Hardee said, potentially through another Infrastructure Bank application or through the legislature.

But there's strong opposition in the Statehouse to paying for Transportation Department needs out of the general fund, Sen. Scott Richardson, R-Hilton Head Island, said Thursday.

With a lack of money for many worthwhile highway needs statewide, Richardson said money for U.S. 17 would open the door to a laundry list of road projects looking for legislative aid.

"Our better chance is to get to some realistic number on what the gas tax should be," he said.

As prices at the pump climb, Richardson said he expects a struggle in raising the state's 16-cent gas tax, which is one of the lowest in the Southeast.

"The legislature has got to deal with this and say, look, this is how we fund our highways," he said.

After already providing $2 million for the road widening last year through developer fees charged for road improvements, the Beaufort County Council also has added $5 million for U.S. 17 to a project list for a 1 cent sales tax referendum to go before voters in November. Final approval of the list is expected next month.

Other money set aside for the widening project includes $60 million the Transportation Department has agreed to put toward long-term borrowing, $10 million from a federal earmark, $200,000 from the Lowcountry Council of Governments and $2 million left unspent in the Transportation Department budget.