CHEYENNE - A $190 million infusion from the Legislature for highways will spur a flurry of construction this year and next, with a focus on areas hard-hit by energy development.

More than 40 projects are in the pipeline, with around $100 million in work scheduled this year and $90 million in 2009. Another $10 million will go to county roads.

The funds are expected to provide an economic boost for communities near the projects, and will allow contractors to maintain their operations, officials said.

What the funds won't do is solve the long-term decline of state highways, transportation officials said.

"I think the citizens will really see an improvement to some of those roads that are being hit with high traffic impacts," said Del McOmie, chief engineer for the Wyoming Department of Transportation.

Flush with mineral revenue, the Legislature in recent years has boosted highway construction dollars with a series of one-time earmarks -- $11 million in 2005, $75 million in 2006, $95 million in 2007 and the current sum.

The money has helped offset the fiscal impacts of slumping federal funding, increased highway traffic, massive inflationary costs and more energy industry-related vehicles on the roads.

The two-year, $190 million sum is only slightly more than the 2006-07 figure, but it will be targeted at areas where it's needed most, officials said.

"We're trying to focus on the areas where we're really seeing the traffic increases, like the coal-bed methane areas in Johnson, Sheridan and Campbell counties," McOmie said.

The funds also will flow to projects on state highways that don't always qualify for federal highway dollars. And they will help secure federal matching funds for major jobs on heavily used routes like interstates.

McOmie said the department should OK about $25 million worth of work this month, and another $75 million worth by June. Many of those projects should be under way this summer.

"The total number of projects we'll be able to do will depend on what inflation does, and everybody knows the price of oil keeps going up, but we hope to do somewhere between 40 and 45 projects over the next two years," McOmie added.

The statewide economic impact from the highway funds could be considerable, McOmie said.

Based on federal estimates, he said the $190 million appropriated by the Legislature could generate around $800 million or more in stimulus as it trickles through local economies.

The ongoing reconstruction of Togwotee Pass on State Highway 287 north of Dubois has pumped many dollars into that economy, said Rene Suda, owner of the Stagecoach Motor Inn.

Locals are working as laborers and skilled construction workers. The area's concrete plant has been very busy, Suda said.

Once the project is done, Dubois will be a more attractive route to Yellowstone National Park, he said.

"It does help the economic well-being of the entire valley," said Suda, noting that some locals consider the project a hindrance that is forcing tourists and their money elsewhere.

Contractors are also getting a boost.

Jeff McDonald, vice president of Oftedal Construction in Casper, said the recent funding should allow his operation to maintain its current levels of employment and machinery.

However, it won't provide enough work to allow for major purchases. For example, the company will continue to delay the purchase of an asphalt hot plant.

And competition from out-of-state contractors, forced to look elsewhere because of the housing slump, is hurting local bidders, he said.

Still, the state funding should "lend some stability to the program, which is great," McDonald added.

State transportation officials have warned for some time that the highway funding model is flawed.

Wyoming relies on the federal government for 60 percent of its highway budget, far more than many other states.

By annually appropriating construction money, lawmakers force WYDOT to guess which projects will be funded, which hampers long-term planning.

The problems are compounded by wild inflation in the construction industry and big increases in heavy-truck traffic in recent years.

Overall, the state highway system is in a "declining mode," McOmie said.

Just a few days ago, for example, WYDOT closed one lane of Interstate 25 near Chugwater because of a blowout.

Efforts are underway to fix the problem, but it won't be long before others start to crop up, McOmie said.

"I think it's just symptomatic of the system overall," he said. "We haven't been putting in the amount of funding we need in general across the sate."

The recent infusion of state funding won't begin to address problems with Interstate 80.

Increased truck traffic and dwindling federal dollars have made Wyoming's 400-mile stretch of the interstate a maintenance nightmare.

"That's really a bigger animal than this funding will allow for," McOmie said.

Lawmakers turned down two measures this year that would have provided an extra boost to WYDOT.

A 10-cent fuel tax increase proposed by the Joint Transportation, Highways and Military Affairs Interim Committee failed to receive the two-thirds vote required for introduction.

A separate bill that would have increased the price of drivers licenses to cover production costs also failed. WYDOT balances that program's budget with highway construction dollars, McOmie said.

WYDOT officials said they need another $150 million in steady funding each year to correct the highway issues.

That's in addition to the $100 million the Legislature just appropriated for 2008.

"Should we not receive more funding in the future, you're going to see potholes start to show up throughout the state," McOmie said. "What the traveler can expect is just a steady decline in the rideability of the highways."

Reach Star-Tribune capital bureau reporter Jared Miller at (307) 632-1244 or at {M7jared.miller@trib.com.