North Dakota's Department of Transportation is a rarity in the Legislature. While most government agencies are enjoying double-digit budget increases, the department's next two-year budget is $51.7 million less than its current spending.

Less federal highway aid and declining fuel tax collections are two major reasons why, say legislators who pressed unsuccessfully to boost state general fund support of the department. Normally, North Dakota's general fund, which is financed mostly by taxes on sales, income, energy and corporations, is used elsewhere.

Sen. Harvey Tallackson, D-Grafton, said he was annoyed that the Legislature had stuffed more than $400 million into savings funds while advocates of raising state support for road repairs were going begging.

"My folks back home want us to build roads, not to take $400 million away someplace," Tallackson said. "One of these years, we're going to have to put enough money in so that we can take care of all of our roads."

Both the North Dakota House and Senate on Wednesday approved a final two-year budget for the Department of Transportation. The state's new budget cycle begins July 1 and lasts through June 30, 2009.

The current budget at the agency, which has 1,044 employees, is $955 million over two years. The spending plan approved Wednesday authorizes $903.3 million in spending.

Normally, the Department of Transportation relies on federal aid and revenue from state fuel taxes and motor vehicle registrations.

The Legislature has taken steps to shore up its finances, including earmarking a portion of state motor vehicle excise tax collections for the department's use.

Rep. Robin Weisz, R-Hurdsfield, the chairman of the House Transportation Committee, reluctantly went along Wednesday with the agency's budget plan, while saying legislators in the future will regret not devoting more money to the state's infrastructure.

"We need to realize the message we're sending to our businesses across the state, as they invest hundreds of millions of dollars in a commitment to the state of North Dakota to expand this economy. And this is how we repay that investment," Weisz said. "We will pay later for this."

Rep. Al Carlson, R-Fargo, tried to dissipate the gloom.

"There's a lot of money going into the roads," he said. "I don't share all of (Weisz's) points that every road that we have is going to fall apart."

The bill is HB1012.