The powdered doughnuts tasted good Saturday morning as more than 200 state employees listened to Gov. Mark Sanford speak at their 58th annual meeting.

But the sugar didn't melt away the concerns that the South Carolina State Employees Association members now face.

Many wonder whether the next round of layoffs might claim their jobs, as state agencies continue to search for places to cut during lean budget times.

State employees' take-home pay is shrinking fast, as they face a second year with no pay raise and an estimated $48-a-month increase in health insurance.

"It's a pitiful situation," said Jacqueline Green, a Department of Health and Environmental Control worker. "Sometimes I think state employees are taken for granted."

Sanford, who was the keynote speaker at the event at Seawell's in Columbia, said he appreciates state employees' sacrifices. "I wanted to come by, basically to listen, more than anything," Sanford said. "And to say thank you."

And he did just that as participants lined up to bend his ear and offer personal suggestions on how to run the state.

One hot topic that had some shaking their fingers at Sanford: his recent restructuring plan that would allow employees at the top three levels of state agencies to be fired at will.

That way, effective management teams can be created at state agencies, Sanford explained to the group during his speech.

"You want to have clearly defined lines of authority," Sanford said. "And sometimes, we don't do that in South Carolina."

Larry Coleman, a child and adolescent counselor with the Department of Mental Health, said he isn't convinced it will work. "Just because you change bosses doesn't mean you should lose your job," Coleman said. "You're going to have a hard time attracting quality people when, in a few years, they know they could get kicked out."

Still, Coleman said he has more pressing concerns at the moment. He used to be one of three counselors at his Laurens County agency. Now, he's one of two who are carrying the workload of three.

He and other state employees Saturday said they'd like to see a mandatory pay raise for state employees -- similar to what is now in place for teachers. Sanford did not speak to the group about this.

"It doesn't have to be a whole lot," Green said. "But we'd know we were at least going to get something."

Overall, most participants said they were impressed with Sanford and believe things are likely to get better as the economy heals and more money comes to state agencies. They just hope the change doesn't take too long.

"I'm optimistic. Things will get better," said Delores Glymph, a Department of Corrections worker. She worries that layoffs are compromising the safety of Corrections workers and that program cuts might mean inmates aren't being prepared to return to society.

"We're doing more with less," Glymph said. "But isn't everybody?"