S.C. senators passed a $5.3 billion state budget in the wee hours Saturday morning, reaching a compromise on paying back an old debt of $155 million and avoiding dire cuts in human services.

“I can’t tell you how happy I am with the way these senators worked,” said Sen. Hugh Leatherman, R-Florence, after more than 15 straight hours of debate.

It was a task that seemed impossible earlier in the week.

But it was accomplished by a complicated, and perhaps doomed, plan to sell state land and cars.

The tension began three weeks ago when Democratic Treasurer Grady Patterson sent senators a letter telling them to pay back a 2002 deficit or risk the state’s credit rating.

The fight escalated 10 days ago, when Republican Gov. Mark Sanford sent his own letter. He followed with a Monday press conference and with continued pressure on legislators.

The deficit was created in 2002 when top financial officers closed the books on the fiscal year, although the state had spent much more money than it had on hand.

If the debt wasn’t paid, Sanford said he would consider vetoing the budget.

Leatherman, the Senate’s finance chairman, and other key leaders refused.

They said any additional tax money from this fiscal year, as much as $150 million, should be used to protect state jobs and services, such as prescription drug coverage for the elderly. They argued that, after years of state budget cuts and thousands of lost jobs, the state could not afford further cuts — especially to pay a debt it owed itself.

But Sanford and Democratic Sen. Vince Sheheen built and held together a coalition of Democrats and maverick Repulicans to force some repayment.

The compromise would:

• Take $20 million in tax collections from this fiscal year that ends June 30. It is the only “cash,” or reliable revenue source, in the compromise.

• Take $25 million from the sale of the state fleet of cars, a move that would have to be studied extensively by the State Budget and Control Board and approved by state leaders, by no means a guarantee.

• And count on $32 million from the sale of surplus state property, such as the Department of Mental Health’s Bull Street hospital. The property would be sold for fair market value and not in any specific time frame.

This $77 million or so would be added to $50 million the Senate had set aside and would considerably cut the deficit. Other payments are promised in the fiscal year that begins in July.

WHAT IF THE PROPERTY DOESN’T SELL?

The compromise for Sanford and his colleagues might be a case of be-careful-what-you-wish-for.

Sanford began pushing to sell state property and cars in January when he proposed an extensive budget, rare for a governor.

The House accepted some of Sanford’s recommendations in its March budget proposal. But Leatherman and Senate budget writers derided the sale of the fleet and property, saying they could not write a plan based on “funny” or “maybe” money.

But four long days of squabbling forced the compromise. If the money does not materialize, it would be a reflection on Sanford, senators said.

“If the governor thinks it’s good money, I guess I have to acquiesce,” Leatherman said.

Sanford’s administration claimed victory, but not total.

They wanted the cars and land sold but not necessarily to pay for the debt. Instead they wanted cuts in services, so spending would reflect how much money the state actually had on hand.

Sanford spokesman Will Folks said Saturday the governor was pleased with the Senate’s “positive steps.”

“He would have taken a few steps further, but we’ll see what happens from here.”

Sheheen, a Democratic freshman from Kershaw County, said he was not relying on the sale of cars and land to settle the deficit. He said it was one skirmish in the larger battle.

“I wanted us to tackle the question of whether we’re really going to raise revenues or we’re really going to make cuts,” Sheheen said. “I still don’t know that we had that conversation.”

Writing the state’s budget eats up much of the General Assembly’s time and energy during the five-month session. As the economy has soured, budget-writing has increasingly meant using one-time money to pay for recurring needs such as schools and jails.

Two years ago, the state balanced the budget by raiding environmental and other trust funds.

Last year, it relied on a one-time congressional bailout of the states.

This year, legislators accepted a promise from the Department of Revenue that it would collect $90 million more in taxes if given $9 million more for auditors and collectors.

PROLONGED AGITATION

Senators debated the budget for four days. They spent much of Friday agitated with one another, as compromise plans gelled and then melted.

In one scenario, Democrats were willing to forego the repayment if given a chance to pass a cigarette tax for health care.

Republicans were OK with a cigarette tax vote but only if Democrats forgot the repayment and allowed a vote on Sanford’s plan to reduce income taxes.

No deal.

Decisions were made, reversed and in some cases, made again.

Some senators skipped college graduations, Friday night parties and the start of Mother’s Day weekend to get the budget done, at Leatherman’s insistence.

Others left for previous engagements, prompting an attempt to send law enforcement out to collect them. That attempt failed but had considerable momentum.

Sen. Darrell Jackson, D-Richland, teased Leatherman about the maverick Republicans bucking the leadership, on big items such as the debt and small, such as adjournment.

“I said, the good news is, you’re finally captain of the ship,” Jackson said. “The bad news? The ship is the Titanic.”

By midnight, the acrimony had taken on a slumber-party giddiness. Senators passed amendments in minutes that would have taken hours earlier in the day. Sen. Verne Smith, R-Greenville, a 79-year-old tire dealer, said ordinarily he would weigh in on an arcane amendment adjusting tire disposal fees.

“But I just want to get through with this budget so damn bad, I don’t know what to do,” he said.

Leatherman said the debate, while spirited, was in the grand tradition of the Senate.

“Those things happen in the chamber,” Leatherman said. “That’s sort of part of the process.”

Reach Bauerlein at (803) 771-8485 or vbauerlein@thestate.com.