Still, he refused to rule out a gasoline tax increase, if it proves to be needed. That brought his position a quick endorsement from the head of an association of Michigan cities and villages.
In a speech and comments to the Michigan Municipal League's legislative conference, Engler urged increased lobbying of Washington for a bigger share of federal road money, as well as further savings under the current road funding system and from the state Department of Transportation.
"We're looking at all the options and we'll continue to do that," he said.
He also called for stopping expensive highway lawsuits and eliminating the "outdated spillage allowance."
"I hate raising taxes. (But) I never said I'm opposed to raising the fuel tax. We have to fix the leaks in the bucket first.
"At the end of the day, if there isn't enough money, you have to look where we've traditionally looked," he said, referring to Michigan's 15-cents-a-gallon tax on gasoline.
"It's my intention to avoid a gas tax increase forever if I can," he told reporters after his speech. But he said state lawmakers can be counted on to boost taxes if needed.
"When the time is near, people will make the tough choices," he said.
Dearborn Mayor Michael Guido, president of the Municipal League, said he supports Engler's position although Guido has called for a gas-tax increase.
"We were pleased he didn't say 'no gas tax increase,'" Guido said. "He's willing to look at it."
But Guido said "I think there's a legitimate need" for more road money. In a newspaper column last week, Guido said the "most fair and equitable way to raise that money is to pass a significant increase in the state motor fuels tax."
"It's not unanimous, but there's a level of frustration here," he said yesterday, referring to his fellow municipal officials.
In a news release, the Municipal League said it "supports the governor's efforts to explore other avenues for paying for Michigan's massive road repair needs, before resorting to an increase in the state gas tax.
"With funding needs this great, however, local officials believe a gas tax increase is inevitable."