COLUMBIA - A House subcommittee adopted a recommendation from Gov. Mark Sanford on Wednesday that would require the state Education Department to begin searching for a private contractor to take over school bus operations.

The Education and Public Works subcommittee took up some of the governor's budget proposals for the first time, moving some items one step closer to approval by House members. The subcommittee's work now must be approved by the House Ways and Means Committee.

Sanford also has proposed sweeping changes in the way the state funds its schools, including using $20 million in lottery money to increase per-pupil spending.

That proposal was not discussed Wednesday. Neither were proposals to eliminate the John de la Howe school's budget.

The subcommittee adopted Sanford's proposal to use $5.8 million not spent in the last fiscal year by the Education Department to increase per-pupil spending.

Another budget proviso adopted by the subcommittee would require the Education Department to send requests for proposals to private companies that could apply to run the school bus system.

The stipulation does not set a deadline for the agency to make the request and allows privatization to occur on a statewide or regional basis.

South Carolina is the only state in the nation that owns and maintains its school bus fleet, costing about $85 million a year in maintenance, replacement and staffing, education officials said. But a privately run system overseen by the state would also be unique to South Carolina, Foster said.