ROCK HILL -State Sen. John Matthews says he's almost ready to try to repeal the S.C. lottery because money raised is not benefiting those who spend the most on tickets.

"I'm just about at the point of proposing that we need to put up a constitutional amendment to repeal the lottery because the money being generated is being abused," said Matthews, D-Bowman, who originally backed the enabling legislation.

Matthews says merit-based college scholarships are funded at higher levels than need-based awards and tuition grants for low-income students in the budget approved by the Senate Finance Committee.

"We are funding only 25 percent of the students who are eligible for needs-based scholarships," Matthews said. "And over 50 percent of the people who buy the lottery are minorities."

Other senators are bracing for lengthy debates about spending $192 million in lottery money expected in 2003-2004.

Sen. Phil Leventis, D-Sumter, said the lottery has become "the worst of political footballs."

He said reallocating the money is a volatile way to deal with education, which needs stability. Leventis said the process is destructive because it pits various educational interests against each other year after year.

Several Democrats and Republicans agree on one thing: The General Assembly made a mistake not earmarking money for specific programs.

Sen. Wes Hayes, R-Rock Hill, says South Carolina should have followed the lead of Georgia, where lottery money goes for Hope scholarships and pre-kindergarten programs only.

Another problem this year was the lottery came "at [a] time when it was the only new money available," Hayes said.

The Senate Finance Committee this year allocated $30 million for endowed chairs at universities, $5 million to the merit-based Palmetto Fellows scholarship program, $40 million to Life scholarships and $12 million for technology at two- and four-year colleges.

It also gave $22 million to help below-average schools, $34 million to K-5 academic programs and $2 million for needs-based scholarships.

Hayes said lawmakers haven't broken faith with the money going for education.

But Sen. Harvey Peeler, R-Gaffney, said his constituents always ask about plans for lottery money. "K-12 is where the money ought to go," he said.

Peeler said a third of S.C. students don't graduate from high school. "So in that situation, what good are scholarships?" he asked.

Hayes said public expectations may be unrealistic, since lottery funds don't compare with the nearly $2 billion spent on S.C. education each year.