COLUMBIA, S.C. - Gov. Mark Sanford's first executive budget is a 300-plus-page tome that eliminates more than a dozen independent state agencies and colleges and generates $344 million in savings and cost reductions to close a gaping hole in the state's finances.

The $5.1 billion budget proposal released Thursday calls for agencies to cut 15 percent of their travel, meals and phone expenses. That is a change from the across-the-board cuts in overall agency funding seen in recent budgets.

Sanford says his proposal would generate $108 million from restructuring, program cuts and more efficient agency operations. It raises $94 million by dipping into agency accounts and selling surplus state land, including a Mental Health Department facility in Columbia, and 6,155 cars from the state's fleet.

While emphasizing cost reductions, the proposal increases overall K-12 education spending by $29.7 million. About $20 million of that would come from lottery funds to increase per-pupil spending by $67 to $1,810.

"In an incredibly difficult budget year, we were able to hold education harmless and in fact add a little bit to it," Sanford said.

But it's not enough to meet the $2,234 per student set by a state formula under the Education Accountability Act, noted Education Superintendent Inez Tenenbaum said.

At the same time, Sanford's proposal threatens education progress as the state climbs to the top of national Quality Counts rankings, Tenenbaum said. Sanford's plan reduces spending in teacher quality improvement programs, "some of the very things that helped us get that high national ranking," she said.

Other elements of the proposal:

_ Trims $4.6 million from the state Education Department's administrative costs.

_ Eliminates the John de la Howe School's $3.3 million budget and sends those students to Wil Lou Gray Opportunity School. Moves Wil Lou Gray and the School for the Deaf and Blind under a restructured Education Department, ending those schools' autonomy.

_ Bars new entrants into the National Board Certification program, saving $4.6 million. Teachers already in the program would continue getting their bonuses.

_ Eliminates some colleges. Sanford calls for doing away with the University of South Carolina's Salkehatchie and Union operations during the next three years. That would bring first-year savings of just less than $1 million. And he would require more cooperation between USC-Sumter and adjacent Central Carolina Technical College in Sumter.

_ Cuts $10 million from the last $30 million payment for endowed chairs, a program intended to spark research work at state universities. Sanford would extend funding for one year, putting an extra $10 million into it.

Overall, higher education budgets are trimmed by 2.6 percent, Sanford said. "But you've got to stack it against something," like 20 percent in cuts during the past two years, he said.

Key GOP legislators Sanford briefed on the spending plan quickly praised the Republican governor's efforts.

This is "the first time since I've been here we've gotten a budget (from the governor) that was balanced and could be used to run the state," said House Ways and Means Chairman Bobby Harrell, R-Charleston.

"I suspect that a lot what he's done in his budget you'll see in the House version of the budget when it comes out," Harrell said. Still, Harrell isn't a fan of everything, including doing away with some colleges. "I think that's going to be difficult. I'm personally not inclined to support that," he said.

Sanford and his staff spent months on the plan, including budget hearings with state agencies this summer. It incorporates suggestions Sanford's government efficiency and reorganization commission proposed in September.

"I applaud the governor for what I know was a tremendous amount of time and effort," said Senate Finance Chairman Hugh Leatherman, R-Florence.

Another key budget issue has been funding for the federal health care program for the poor and elderly. Some have suggested a cigarette tax increase to pay for growing Medicaid costs.

Sanford wants to apply the state's sales tax to lottery tickets and raise the cigarette tax to reduce income tax to 5.9 percent from 7 percent.

He says he would use $140 million more from the state's general fund to cover Medicaid programs instead of relying on one-time funding sources. "For too long we've borrowed from Peter to pay for Paul and that sets up disastrous consequences," Sanford said.