A Senate panel heard support Tuesday for a plan to increase cigarette taxes to cover the state's Medicaid budget problems.

The senators heard no support for a plan that uses a different approach.

A Senate Finance subcommittee began weighing the financial aspects of a bill the House approved two weeks ago that restructures health care agencies. That bill also calls for dealing with Medicaid budget troubles by redeeming part of the state's tobacco lawsuit settlement bonds, which supporters say would yield more money for health programs for the state's neediest residents.

While in consideration in the House, the bond plan was criticized by state Treasurer Grady Patterson as too risky. That continued Tuesday. "It's a lot of work, but you wouldn't get anything out of it," Patterson said.

"That's dead in the water," said Sen. John Land, D-Manning, one of the subcommittee's three members.

Senate Finance Chairman Hugh Leatherman, R-Florence, said he won't support the bond restructuring plan, either.

"I'm disappointed they seem to be so set on raising taxes that they're not willing to consider other alternatives," said House Ways and Means Chairman Bobby Harrell, R-Charleston, who pushed the bond plan in the House.

The Senate subcommittee spent about two hours Tuesday hearing support of Gov. Mark Sanford's plan, which would raise the cigarette tax but lower income taxes. That plan would generate $150 million for Medicaid through a 53-cent-per-pack increase. The state's current 7-cent-per-pack cigarette tax is the third lowest in the nation, said Revenue Department Director Burnie Maybank.

Chip Campsen, Sanford's policy adviser, told the senators that the tobacco tax increase would be offset quickly by the income tax decrease. That "tax neutral" effect should cut down on opposition from people who pledged not to raise taxes, Campsen said.

The subcommittee took no action on the bill, but Leatherman wants the subcommittee to finish its Medicaid restructuring and funding work within a week. Mending Medicaid's finances -- with or without a cigarette tax increase -- is a crucial element of the budget deliberations that the Finance Committee is beginning.

Charleston Lawmakers Override Sanford Veto

The Charleston County delegation in the House overrode Tuesday a veto by Gov. Mark Sanford.

Sanford in February vetoed a bill that would have combined Charleston County's two voting offices into one. Lawmakers pushed the bill to reform the election process in Charleston County, which in November was plagued by long lines and a lengthy vote count.

The veto upset a number of lawmakers, who said Sanford did not contact members of the delegation to inform them of the veto.

Sanford said he didn't oppose combining the offices, but the bill was local legislation targeted at a specific county, and, therefore, unlawful special legislation.

Republicans in the Charleston County delegation had a difficult time getting the necessary support to override the veto. But Tuesday, members agreed. They voted 14-0 to override the veto.

Campaign donation restrictions bill passes

The Senate Judiciary Committee on Tuesday passed a bill that would restrict campaign contributions.

The bill would prohibit a political party from getting contributions from the party's committees or legislative caucus committees. Candidates also would not be able to use campaign funds for personal expenses.

Under the bill, the limit for disclosure would be reduced to $25,000 from $50,000. Once a committee has donated the limit to a candidate, it must go through the process of disclosing donations. Legislative caucuses are excluded from the regulation.

Lobbyists, whether registered or not, cannot contribute to any campaign.

The bill also requires all contributions to be disclosed within 45 days and increases the late fee to $10 a day for the first 10 days and $100 for every day thereafter.

The bill goes to the full Senate for debate next week.