COLUMBIA, S.C. - The state's alcohol and drug abuse agency said Friday it will reduce its staff by 16 after the department learned it will not be able to use $1 million of lottery money.

Agency director Lee Catoe said the Department of Alcohol and Other Drug Abuse Services suffered $2 million in budget cuts this year after restructuring legislation stalled and money from the state lottery failed to come through.

"The unfortunate result of this reality is the necessity to reduce our work force," Catoe said in a release.

The General Assembly set aside about $1 million from the Education Lottery for the agency, with no restrictions on how the agency could use the funds.

But Gov. Mark Sanford asked the Attorney General's office whether that was allowed, and Attorney General Henry McMaster issued an opinion earlier this month saying the courts would likely find that using the money to restore budget cuts would be unconstitutional.

Instead, the lottery money is supposed to be used for education, according to the eight-page opinion.

DAODAS, along with other state agencies, has suffered its share of budget cuts since 2001. Its budget has been cut more than 55 percent and the agency has lost almost half its full-time employees since then.

The cuts will come from all levels within the agency.

"We agree with the governor that we want to reduce or minimize any harm to client access to services and treatment. That's just our most important thing we do here," said Stephen Dutton of DAODAS.

Catoe said the agency also will work to reduce travel, telephone and rent costs.