COLUMBIA, S.C. - Democrats chalked up a win Wednesday when House Republican reconnected the funding for HOPE Scholarships and grants for low income students.

"Victory!" said House Minority Leader James Smith, D-Columbia, just before the House approved the change in the state's $5.1 billion budget. "They cut it to zero. Democrats and the people of South Carolina cried foul, and we shamed them into doing the right thing."

The money, which had been diverted to technical college tuition, flowed back into HOPE Scholarships as Republicans developed a plan to raise $13.5 million by tapping state lottery commission operating funds and reducing prize payouts slightly.

"We wanted to meet the needs of many people that came to us and the HOPE Scholarship was on top of that," said House Speaker David Wilkins, R-Greenville.

Democrats claimed victory but praised the GOP for responding to a key budget issue.

"It took about 10 days for them to see the light, but I think they came to the realization that mainstream South Carolina was not going to accept those cuts," said Rep. Joel Lourie, D-Columbia.

Columbia College students led rallies at the Statehouse to protest losing scholarships and grants. "It just goes to show people a small group of people can make a difference," said Sarah Ford, a 21-year-old Columbia College junior. "That's a wonderful thing."

Gov. Mark Sanford, a Republican who opposed the lottery, applauded the plans.

"The lottery was sold to South Carolinians as something to fund scholarships. I think you've got to make sure the money is going to the first priority," Sanford said. The move "helps the people most in need."

The lottery's administrative accounts would lose about $11.7 million, pushing its overhead budget to about 6 percent of what the games take in during the fiscal year that begins July 1.

Lottery payouts would be cut by $1.8 million, or 0.3 percent of the current level. Even with the change, more than 55 percent of the money the lottery takes in goes out in prize payments, said Rep. Bobby Harrell, R-Charleston, who leads the House budget-writing committee.

It's unclear how the changes would affect lottery operations. Some of the lottery's costs are set by long-term contracts and others are variable, such as commissions.

There may have been another way to add money to those programs, said Ernie Passailaigue, the lottery's executive director. Legislators expected the lottery to generate $172 million for the state this fiscal year, but the games already have raked in $145 million, Passailaigue said.

With the lottery generating more than $20 million a month for the state, there's a good chance money will be left over at the end of the year, he said.