ALBANY — A slew of major state transportation projects, including transforming state Route 17 into Interstate 86, are in jeopardy because of a possible unexpected shortfall of $371 million.

State transportation officials learned Tuesday that President George W. Bush's federal budget proposal included a $9 billion cut in federal aid to state highway and bridge programs. The state's share amounted to $371 million, or more than 20 percent of what the state budgeted for highway and bridge projects last year.

State Department of Transportation Commissioner Joseph Boardman outlined the funding crisis Tuesday before a legislative transportation hearing. He told lawmakers that projects across the state, all heavily reliant on federal funds, could be in trouble unless Congress closes the budget gap.

Projects Boardman named as potential targets included the 10-year near $600 million conversion of Route 17 into an interstate, among other interstate projects statewide.

"We haven't made a decision about where we should or shouldn't pull money from if the dollars aren't there," Boardman told the lawmakers.

But will some be cut if the money isn't there?

"If there is no replacement of these funds we're talking about $1 billion over the next five years," Boardman said. "Certainly, we're no magicians."

A.J. Castlebuono, vice president of the Associated General Contractors trade group, said, "A federal reduction of this magnitude will just cripple the (state highway and bridge) program."

Boardman said the projected federal shortfall was attributed to the slowing economy and the Sept. 11 terrorist attacks. Specifically, there were fewer large trucks and gallons of gasoline sold, meaning less in tax revenue that should be directed toward highway projects.

Gov. George Pataki's 2002-03 $88.6 billion state spending plan relies heavily on federal funding. Frank Mauro, director of the Fiscal Policy Institute, a labor backed think-tank, said Congress needs to hand over more cash to cover the near $5 billion state revenue shortfall.

"We're early in their (federal) budget process and they could come out with a way to plug the hole, and that's what we hope they do," Boardman told lawmakers. "All of our projects at the Department of Transportation really rely on it."