HILTON HEAD ISLAND, S.C. - Worried about the increase in development, especially in the coastal areas, some lawmakers and Gov. Mark Sanford say the state should move forward with a conservation bank that hopes to preserve rural landscape, wetlands and historical sites.

Beginning in July, a portion of the state's real estate transfer fee will be used to purchase land or conservation easements from willing sellers - unless a House bill passes and delays the funding.

The bank was created in 2002, and Marvin Davant, executive director of the state Conservation Bank, estimates the fees could generate about $10 million yearly.

But state Rep. Billy Witherspoon said he has sponsored a bill to delay the bank's funding because of the state's budget problems. The state's $5.1 billion budget faces a gap of roughly $350 million between spending and revenues.

"I sure can't see spending money and buying property ... when we're in such a budget crunch," said Witherspoon, R-Conway.

When Sanford released his budget plan Thursday, he said $10 million should be appropriated for the bank for the upcoming fiscal year.

"Once that land is gone it is gone forever," said Sanford, noting the coastal areas were particularly important to protect because of the steady increase in residents. The governor from Sullivans Island is the first South Carolina governor from the coast in almost a quarter-century.

He said no funds should be borrowed from any trust fund for other operations, including a cleanup fund for the Barnwell low-level nuclear waste dump that has been raided in the past. Sanford's budget plan calls for adding $5 million to that fund.

The South Carolina Conservation Bank would award grants on a competitive basis to state agencies, municipal governments, nonprofit land trusts and other qualified groups. Money could be used on land with significant natural resource lands, wetlands, historical properties and archaeological sites.

The head of the Beaufort County Open Land Trust board Dean Moss said the money could be used to acquire property in the county, and at least two county lawmakers support the bank.

State Sen. Scott Richardson said he would fight against the Witherspoon's bill.

"It's just ridiculous. I'm not going to let them do that. That thing needs to be funded," said Richardson, R-Hilton Head Island. "I don't want to see every nook and cranny of this state developed."

State Rep. Bill Herbkersman, R-Bluffton, said if the money were put into a fund starting this year it could go further because real estate costs could be lower in this bad economy.

Davant hopes that once money comes into the fund, he could use some as matching funds for grant money to make even more money available for land preservation. "It could have an incredible effect," Davant said.

Information from: The Island Packet