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PIERRE, S.D. (AP) Gov. Mike Rounds says the state will make full payments to contractors who are working on highway projects despite news that the Federal Highway Administration is delaying federal funding payments to states.

U.S. Transportation Secretary Mary Peters says the federal highway trust fund, which helps pay for highway and bridge projects, will run about $8.3 billion short by the end of September.

Peters blames it on high Gas Prices, which have prompted Americans to drive less.

Rounds says states can expect a 60 percent to 80 percent reimbursement level, which could range from $2 million to $4 million a week in South Dakota. He says the state will pay its contractors and businesses that have done work in good faith.

(Copyright 2008 by The Associated Press. All Rights Reserved.) APNP 09-05-08 1718CDT | save this article / add to your favorites list