(Published June 2‚ 2004)

COLUMBIA, S.C. (AP) - Gov. Mark Sanford's plan to cut income taxes for the state's highest paid residents effectively died Wednesday as the Senate sent his cornerstone agenda item back to a committee.

With one day left in the session, the move appeared to kill the bill that was mortally wounded last week when senators wouldn't end a filibuster.

"We got it to the 1-yard line," Sanford said.

Unless senators have a speedy change of heart, Sanford will mark off just three of the 16 items on his Checklist for Change when the Legislature adjourns for the year at 5 p.m. Thursday.

Last month, the Republican governor signed a bill that limits regulations on small businesses.

On Wednesday, lawmakers approved bills that offer classroom teachers more protection from assaults and that ensure the state will repay a $155 million debt left from the 2002 fiscal year.

Handling the deficit has "clearly been one of the top priorities for our administration this legislative session and this bill takes us significant steps in that direction," Sanford said.

Sanford had proposed lowering the state's top 7 percent income tax rate to 4.75 during the next several years as the economy grows. He said his plan was "absolutely vital to helping small businesses expand and create jobs here in South Carolina."

Critics said the reduction would benefit only the state's top wage earners.

Some observers said Sanford's animosity with legislators held up the governor's agenda, but Sanford said the income tax plan fell victim to archaic rules that allow a single senator keep a bill from being passed.

"We're going to continue to push for this bill, and we certainly hope that the Senate is going to look at its rules during the offseason so that the will of the majority of senators isn't held hostage in the future," Sanford said.

Senate Rules Committee Chairman Larry Martin, R-Pickens, said those guidelines are being reviewed and it may become easier to end filibusters next year if they are tweaked.

To end a Democratic filibuster on the income tax bill last week, Sanford's allies needed 28 votes but could muster no more than 25. Supporters said it was up to the governor to persuade three senators to change their votes.

Sanford couldn't deliver, said Senate Finance Chairman Hugh Leatherman, R-Florence. So, "rather than taking the chance of bogging this Senate down for days for what I view as absolutely no chance of passing this bill," Leatherman had the bill sent back to his committee.

"It's a sad day," said Sen. David Thomas, R-Fountain Inn. "We tried as best we could."

"What's so sad is it's not just an economic development tool, it's really part and parcel - a cornerstone - of the governor's program," said Thomas, who pushed Sanford's tax plan. "We Republicans who are loyalists to him are kind of sick about it, frankly."

Senate President Pro Tem Glenn McConnell, R-Charleston, said all hopes aren't lost for Sanford's income tax plan. A House bill has the tax plan attached to it and McConnell wants to get that bill up for debate Thursday, the Legislature's final day.

It turned into a fast paced afternoon as the Senate plunged through its calendar and a tall, teetering stack of bills sent over from the House.

McConnell and Martin ticked off bills that are expected to head to Sanford's desk:

- Sweeter state tax incentives for filmmakers.

- A 20 percent cap on property tax reassessments.

- Changes in parole laws that help crime victims avoid multiple trips to hearings and that would allow them to testify by video hookups.

- Changes in state lobbyist laws that prevent them from registering if they don't pay fines.

Other bills are certain to die.

One on restricting filing lawsuits never came up for full debate in the Senate after handily clearing the House. It was another Sanford agenda item.

And the massive government restructuring bill that McConnell introduced for Sanford and shepherded through his Judiciary Committee will die when the Senate and House adjourn. It never came up for debate on the floor.

Sanford "doesn't make it real, real easy on us over here," Thomas said, referring to the governor's style of "pitting himself versus the Legislature."

While the House rushed to pass Sanford's agenda, GOP representatives remained irked at a governor who encouraged people to run against them.

"Judging by his own comments, he is trying to defeat Republicans who aren't willing to be servants on his plantation," said Rep. John Graham Altman, R-Charleston.