COLUMBIA, S.C. - Sen.s approved the state's $5 billion budget Wednesday, leaving open discussion that could increase taxes and fees to fund education and health care programs.

Sen.s approved a budget that's leaner than the House's version of the budget and is at least $200 million less than the plan that hit the floor for debate three weeks ago.

Sen. Verne Smith, in the Senate since 1972, said it's the first time he recalls a Senate passing a budget with less money than House.

Anti-tax increase Republicans led efforts during the past two weeks that stripped that money, including a cigarette tax increase and limited sales tax increases from the budget. Republicans used procedural moves to knock out spending plans Democrats favored and Democrats responded by using the same rules to knock out fee increases Republicans needed to balance the spending plan.

While the budget won third reading approval on 27-14 vote that broke along party lines, the budget debate is far from over.

"We have not lived up to our commitment to the children of our state," said Senate Minority Leader John Land, D-Manning. State per-pupil spending of $1,643 approved in the Senate budget will be about the same as the state spent in 1995.

"I can't vote for this budget," Land said. "I just don't think we've stepped up to the plate."

Democrats and a handful of Republicans have pushed various plans to raise sales taxes and offer a variety of other tax breaks, but those plans have opposition inside and outside the Senate, said Senate Finance Committee Chairman Hugh Leatherman, R-Florence.

Leatherman said his people back home don't want tax increases. "This means we've got to live within our means," though there will be many unmet needs, Leatherman said.

Sen.s get another swing at putting money into the budget Thursday. Since Senate rules killed tax-raising efforts in the budget bill, Republicans and Democrats now turn their attention to another bill that can be used for a cigarette tax increase, new fees and a sales tax hike.

Sen.s are planning to take up a bill that could increase the state's cigarette tax by 53 cents to 60 cents a pack, increase traffic ticket fees and raise the state's sales tax.

A cigarette tax to support Medicaid programs and tied to a gradual income tax decrease may be the surest bet on that front. "I'll be pushing for that and see if we can't get some moneys for the Medicaid plan," Leatherman said.

If Medicaid programs don't get more money, its current clients will still go to the emergency room, and their costs will be picked up by business and other consumers in higher insurance rates, Leatherman said.

The Senate left the door open to adding that money back into the budget, if senators agree to the tax increases.

Debate on those issues is expected to go into the night Thursday.

On Wednesday, Republican and Democratic leaders met in small groups off the floor and behind closed doors to work out final deals on key issues.

The biggest spending issue of the day was how to spend money from the South Carolina lottery.

The lottery spending plan would use $195 million for scholarships and grants, school technology, university research and school buses. The Senate proposal agrees mostly with what the House approved in March.

However, there are some significant differences. Sen.s put $34 million toward reducing technical college tuition, well above the $27.8 million the House approved. The Senate also gave elementary reading, math, science and social studies programs $26 million, while the House had OK'd $40 million.

House Ways and Means Committee Chairman Bobby Harrell, R-Charleston, said that shows the Senate wants to spend more money on college tuition than public schools.

The Senate also found money to balance its budget, notably by capping the state's property tax relief spending at current levels, saving the state $25.5 million. Sen.s said that could force counties to pick up those costs. They also tapped nearly $19 million from various sources, including the state's unclaimed property fund, a state employee unemployment compensation account and interest from the state's tobacco lawsuit settlement.