CARSON CITY (AP) - With three months left in the fiscal year, the state of Nevada has spent all but $1.3 million of its $10 million total budget for gasoline and diesel.

The biggest user is the Nevada Department of Transportation, whose fuel costs now are expected to reach about $6.3 million - some $1.7 million more than the budgeted amount.

NDOT officials say the state also may get hit by contractors because some construction contracts have fuel cost escalation clauses.

But state officials say NDOT depends on the highway fund to pay
those costs, so fuel prices won't add to the burden on the state's
general fund.

NDOT officials are expected to ask the Interim Finance Committee
for a transfer of highway fund money to cover the amount needed.

The second largest user of fuel is the Nevada Highway Patrol, which budgeted $1.9 million for such costs this year.

NHP officials say they expect to end the fiscal year just within the budget.

The NHP and most other major state fuel users fill up at NDOT maintenance stations.

(Copyright 2008 by The Associated Press. All Rights Reserved.)

AP-NY-04-06-08 1826EDT