The proposal, which will be in the governor's upcoming executive budget, calls for strengthening the Commission on Higher Education or creating a new governing board that would, in theory, do away with duplication of services and offer a more unified approach to providing higher education.

Institutions that did not approve of the direction of the new board would be allowed to opt out and become private entities, forgoing any direct appropriations from the state. They would, however, be required to charge a preferred tuition rate for qualified South Carolina residents.

"We live in a state of 4 million residents, and yet we have two schools of architecture," the governor said. "We live in a state that has 4 million residents, and yet we have nine schools of journalism."

The CHE, which oversees higher education in the state, has long been criticized for lacking any real power when it comes to effecting change in the system. The organization came under fire from educators last year for not recognizing the differing missions of the state's 33 public institutions.

Sanford's announcement came a day after two consultants presented a report on the status of higher education that suggested doing away with the CHE and replacing it with a state-level public corporation that could focus on the big-picture issues and partner with public and private businesses and organizations.

Sanford's plan calls for an organization made up of 24 at-large members from across the state. The members would be appointed by the governor, with the advice of a committee made up of legislators, trustees from constituent institutions and members of the private sector.

The governor said the state needs a statewide vision for higher education, one that gets at the waste and duplication in the system and makes sure the right hand knows what the left is doing.

"If you look at the tuition increases we've seen over the past few years in South Carolina, this could be a real win for parents trying to send their kids to college," Sanford said. "We're currently at 105 percent of the national average in tuition costs, while North Carolina is at 82 percent and Georgia is at 86 percent."

The governor, who announced his plan from The Citadel campus Friday, said a big part of the problem comes from the large number of schools supported by the state. He said any way South Carolina can encourage those schools receiving a small percentage of state funding to privatize would help keep tuition reasonable for the schools that remain public.

Thirteen of the state's larger universities would be eligible for the privatization option, including Clemson University, the University of South Carolina, the College of Charleston and the Medical University of South Carolina.

The response from university officials across the state was guarded Friday. The presidents of The Citadel, USC and MUSC said they would need more time to analyze the governor's plan.

In 2001-02, Clemson University got 32 percent of its revenue from the state, USC got 34 percent, The Citadel got 26 percent and the College of Charleston got 26 percent. But the numbers have changed significantly.

Clemson University now gets 24 percent from the state, USC gets 27 percent and The Citadel gets 22 percent.

MUSC President Ray Greenberg gave Sanford credit for "thinking outside the box," but he didn't think it would be practical for his institution to go private. Though MUSC depends on state funds less than other universities, its modest student body means privatization would lead to massive increases in tuition and fees. Even that would not make up the loss of funds, he said.

"Our mission is driven by the public agenda," Greenberg said. Going private "would dramatically change the mission of the institution."

Friday's announcement was the second this week to reveal portions of the governor's upcoming budget. On Tuesday, Sanford announced a plan to pare down the state's vehicle fleet by more than 6,000 vehicles. Both plans follow the theme of streamlining state government, and both have met with cautious optimism from state lawmakers.

Rep. Bobby Harrell, R-Charleston, said he likes the way the governor is thinking, but he will be interested to see whether the universities go for the plan.

"We will certainly give it some consideration during this budget session," said Harrell, chairman of the House Ways and Means Committee.

Jan. 15 is the deadline for the governor's budget. Harrell said he expects to receive it by Christmas.

Sanford's plan to create a governing body over the state's university system is not new. He proposed a similar idea last year and received considerable resistance.

"We are all in favor of streamlining government," said House Speaker David Wilkins, R-Greenville. "But we have to tread very carefully on anything that will put further financial binds on our students."

Wilkins said it will be important to balance cost with an ability to make sure education is accessible.

"And I don't know how a university can go private and keep the cost low."

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