COLUMBIA -- Financial problems at the state Department of Transportation are slicing roadwork, and things could get worse later this year, state highway commissioners say.

But a spokesman for Gov. Mark Sanford said there is no sympathy there for the agency. "This is exactly what happens when you have a state agency that is in effect, accountable to no one," Joel Sawyer said.

"We've argued time and time again that DOT ought to be restructured under the executive branch with some true accountability so people know who to blame when things go awry to this degree."

Highway Commissioner Bob Harrell Sr., who chairs the board's Finance and Administration Committee, said, "We are in dire straits; there's no question about that." He added, "I don't think I've seen it this bad."

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The giant agency's money woes are the result of a combination of factors, including steep increases in the cost of materials used to build roads, flat revenue from the state's gas tax, and lower-than-anticipated federal highway revenues, said Mo Denny, the agency's chief financial officer. The gas tax hasn't been raised since 1987, he said.

"It's tough and getting tougher," Denny said.

John Simpkins, a Charleston College of Law professor, said it will be difficult for the agency to convince lawmakers to give it more money, especially an increase in the gas tax.

"It's a hard sell unless they can demonstrate an immediate need for it," he said.

"Investing in infrastructure is an easy thing to ignore because it creeps up on you and you don't know it's in a crisis mode sometimes until it's too late. Especially in the current legislative environment where they aren't interested in any revenue-raising measures, this will be a very difficult case to make to the Legislature."

Denny said DOT has had to cut back on contract lettings for transportation projects.

"We have deferred some lettings based on safety and preservation," he said. "What that says is new road activity will not go for a while. People are going to say, 'When is that going to happen?' That's the question I can't answer at this time."

Some highway commissioners want help from the Legislature.

But Sawyer, the governor's spokesman, said the agency's spending argues against any increased gas taxes, including its purchase last year of SUVs for top executives and payments to one commissioner of $90,000 over several years to write letters on behalf of Executive Director Betty Mabry.

"The fact that it appears that DOT has squandered boatloads of money, and the knee-jerk reaction is to give them more is baffling," he said. "I'd say $2,300 running boards (for the SUVs) and $90,000 letter writers certainly fit the definition of appearance of squandering."

Six of the agency's seven board members are appointed by the Legislature. The governor appoints its chairman.

The board is responsible for overseeing a $1.2 billion budget and more than 5,000 employees. Almost all of the agency's revenues come from the federal government and fuel taxes, not state general fund dollars.

Sen. Greg Ryberg, chairman of the Senate Transportation Committee and a candidate for state treasurer, said he is skeptical of the timing because the Senate is about to begin debating the budget. He said no one from the agency has told him DOT is facing financial hard times.

"My frustration is this is a stand-alone agency that has very little oversight from the General Assembly, and it has a huge impact on the economics of South Carolina," he said. "There is a lack of communication between the agency and the General Assembly."

House Speaker Bobby Harrell Jr., son of the highway commissioner, said he hasn't talked recently with his father about the issue but is aware of the agency's problems.

"It just plain costs more to build roads with higher petroleum prices," he said. "I think it's time for House and Senate leadership and the Governor's Office to sit down with the commissioners and figure out what we need to do to solve the problem."

Harrell, who authored legislation last year to send some vehicle fees to DOT, said it may be possible to dedicate similar revenue streams, such as the sales tax on cars, to the agency. He said the Legislature could also make a line item in the budget for DOT. He doesn't believe any increase in the gas tax would fly.

DOT Chairman Tee Hooper, a Greenville businessman who was appointed by Sanford last year, predicted difficult times ahead.

"I think the agency is in for a very tough period, cash-flow wise," he said. "I'm concerned that DOT over-committed (to projects) during the last several years, and it's going to come back to be a problem the next 18-24 months."

Like many state transportation agencies, South Carolina's DOT carries out projects over a span of years. Timing the number and phases of projects is key to making the revenue match the expenses.

Denny, who took over the financial helm of DOT in January, told the board this week the agency's treasury has fluctuated in wide swings this year, from a low of $29 million to a high of $190 million.

Many states, he said, try to keep 60 to 90 days of their cash outlay needs on hand. South Carolina currently has about 30 days' worth but has been as low as a week's worth.

Other states also are going through cash crunches, Denny said, including Virginia, which also has curbed projects.

Denny said he doesn't know how many lettings will be delayed or when the agency can approach its normal work schedule. Priority will be given to projects that need resurfacing for safety reasons or the replacement of bridges "in dire need."

He said he isn't so concerned about the agency's cash flow as he is about the period after the current fiscal year. Summer is when contractors generally accelerate their work, he said, and their bills follow.

"I'm getting more concerned about the August-September time frame and then going into next year and the following year," he told commissioners. "It is a real concern. We don't have much flexibility."

He said the agency may have to slow down and delay its payments to contractors to keep adequate money in the treasury. He said construction payments have been much higher than anticipated, in part because of rising fuel costs.

Harrell Sr. said, "I think it's time to say to the Legislature, 'Listen guys, you control the money. What do you want us to do?

"We have a group across the street that expects us to run a highway system, and they expect us to run it on 1987 dollars. It's our job to make it known in spades that we can't do that. The time has come when that simply has to change."

He said the condition of the state's roads demand some change.