(Columbia) Feb. 17, 2004 - Lawmakers began discussion on the state budget Tuesday. South Carolina faces a $350 million gap between expected revenues and the amount of money needed to keep existing programs running during the fiscal year that begins July 1st.

The budget-writing House Ways and Means committee says state lawmakers have $4.9 to allocate.

Ways and Means Chairman Bobby Harrell offered a package of budget changes that would generate $200 million dollars. The changes include selling state cars and surplus property. Those are also two key proposals from Governor Mark Sanford's budget proposal.

Sanford's $5.1 billion budget proposal includes his plans for government restructuring, which would reduce the number of state agencies and consolidate some of their functions. Read budget highlights (Adobe required). Read full budget (Adobe required).

The plan would reduce the number of state agencies from 87 to 72. Governor Sanford says the restructuring plan is expected to save $26 million. Sanford says his proposal would save an additional $82 million by making state government operate more efficiently.

The plan would add almost $32 million to the amount the state gives schools to spend per student, money the governor wants to come from lottery funds. It's unclear if that's allowed under current state law.

He wants to raise additional revenue by selling some state-owned real estate and much of the state's auto fleet. The governor says if lawmakers agree they won't have to raise taxes.

updated 11:44am by Chris Rees