Local councils are expecting cutbacks in transport infrastructure because of a $600 million hole in the Transport Agency's budget.
Waka Kotahi says project costs are higher than estimated, while the revenue available to fund work is about five percent less than predicted.
It admits the funding shortfall will mean delays in the rollout of some projects, and a reduction in funding for councils.
New Plymouth mayor Neil Holdom says councils have hiked rates to pay for roading, and the government may need to tax more to fix the shortfall.
Holdom spoke to Māni Dunlop.
