ATLANTA --- They might have been the most expensive five boxes in Georgia history.

Employees at the Georgia Department of Transportation came across hundreds of contracts and other agreements a couple of weeks ago totaling $360 million, the latest in a long string of revelations that has rocked the troubled agency over the past several months.

In all, the department and state auditors have in recent months uncovered a deficit of nearly $1.7 billion, some of it patched over by making accounting fixes but some threatening to trigger layoffs or endanger construction projects.

The most recently discovered piece of the deficit in the budget for the last fiscal year comes to about $456 million. The solution will likely lead to cuts; auditors and DOT staff recommend the DOT board plug the hole with money from the current budget.

A meeting to discuss the changes is scheduled for Friday, capping off a week of discussions about the future of transportation in Georgia.

Those working to mend the DOT believe they're finally ready to have those discussions, which will continue through the legislative session that begins in January.

"Right now, we know where we stand," said John Thornton, the director of the State Government Division of the Department of Audits and Accounts and one of the state officials helping sift through the mess. "I think they're headed in the right direction."

Local governments are watching the fallout. Many are worried they could lose projects or see construction halted or delayed.

"Certainly, everybody that deals with roads is somewhat concerned about what's come out of Atlanta," said Watkinsville Mayor Jim Luken.

Mr. Luken said the programs that fund much of the city's projects might make it through the cuts unscathed, but Oconee County projects that would benefit the city might be in trouble.

The financial and management issues surrounding the department apparently have not crimped plans to find a way to pump more money into roads, rail and airports.

A coalition of business groups, civic organizations and environmentalists say they're intent on pushing through the Legislature some form of increased transportation funding.

Last year's proposal, a constitutional amendment that would have allowed counties to band together and charge a 1-cent regional sales tax, fell three votes short of the two-thirds majority required to pass the Senate.

Gov. Sonny Perdue said at the time that he wanted then-State Transportation Board Chairman Mike Evans to straighten out the problems at the transportation agency before backing a new funding plan.

After the session, Mr. Perdue said he was satisfied with the progress at DOT and would launch a new initiative called Investing in Tomorrow's Transportation Today.

If anything, supporters say, the ballooning deficit at the agency helps prove there's a lack of resources for needed projects.

"We see great momentum for additional funding in 2009," said George Israel, the Georgia Chamber of Commerce President and CEO, through a spokesman.

Other issues could crop up. The use of eminent domain to acquire the rights of way needed for highway construction could come under fire after an audit revealed the department forced landowners to sell, and in some cases has no plans to use the properties a decade later.

Sen. Jeff Chapman, R-Brunswick, is an outspoken critic of eminent domain. He said Friday he had not seen the report but would investigate.

"Eminent domain is a very beneficial tool for government, but it's one that can be abused," he said.

Reach Brandon Larrabee at (678) 977-3709 or brandon.larrabee@morris.com