COLUMBUS, Ohio -- The administration of Gov. Ted Strickland said Tuesday the state faces a $3.5 billion shortfall in funding for proposed new highway projects previously approved for construction.

In its 2008-2009 Business Plan, the Ohio Department of Transportation said the shortfall was prompting by rising construction costs.

The combined rate of construction cost increases from 2004 to 2007 was 40.7 percent.

The report stated costs went up due to “unprecedented rising costs of oil, increased demand for steel and raw materials in the global economy and the lingering effects of hurricanes Katrina and Rita.”

Ohio Department of Transportation spokesman Scott Varner said the administration is not calling for an increase in the gas tax, the main source of revenue for the department.

Varner said the governor will soon appoint members to a new state task force to evaluate the projects that have already been approved for construction.

“We are trying to be least disruptive to the projects closest to construction,” Varner said.

In the Miami Valley, one major project is well under way and another is just beginning.

Phase III of the rebuilding of the I-70 and I-75 interchange began in 2005 and will continue until 2011. The total cost is $48.3 million.

The newest project is the modernization of I-75 in downtown Dayton.

Phase IA began in October and is scheduled to be completed in 2011 at a cost of $143 million.

Phase 1B and Phase 2 could be examined again by the new task force, along with other projects statewide scheduled for 2010 or later.

Jim.otte@whiotv.com