Sanford Releases Proposed State Budget

COLUMBIA, S.C. -- Gov. Mark Sanford wants to reduce the number of state agencies and consolidate some of their functions as he releases his state spending plan for the coming fiscal year.

Thursday afternoon, Sanford let the public in on how he wants to distribute funding in the state's $5.1 billion budget.

The plan would reduce the number of state agencies from 87 to 72 by placing those such as the Wil Lou Gray Opportunity School in West Columbia and John de la Howe School in McCormick under existing departments. The restructuring plan is expected to save $26 million.

"I think that structure is the most important thing that this budget deals with. That will produce lasting savings to government and every one of our taxpayers throughout our state," Sanford said.

Sanford admitted that the restructuring will result in lost jobs, but no one is sure how many or from what agencies.

Sanford said his proposal would save an additional $82 million by making state government operate more efficiently. For example, he wants agencies to cut telephone and travel expenses by 15 percent.

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

He said he wants to raise additional revenue by selling some state-owned real estate and much of the state's auto fleet.

Sanford and lawmakers face a $350-million gap between expected revenues and the amount of money needed to keep existing programs running during the fiscal year that begins in July.

Sanford held meetings with state agencies during the summer to map out his proposal, which now goes to the Legislature. Lawmakers return to the Statehouse Tuesday.