COLUMBIA - Gov. Mark Sanford says he doesn't approve of a state lottery, but since it's here, it should be as efficient as possible.

Sanford said in a budget hearing Wednesday that he'd like the S.C. Education Lottery to cut its retailer commissions and put even more money toward education.

The lottery has had about $1.2 billion in gross sales since Jan. 7, 2002, through Aug. 31.

About 7 percent of that goes toward retailer commission. Sanford recommended the commission be lowered to about 5 percent.

The 7 percent commission, which was set by the General Assembly, is an incentive for retailers to sell and to perform some banking services by paying out small amounts on winning tickets, said Education Lottery Executive Director Ernie Passailaigue. A lower commission could turn some businesses away from selling tickets, he said.

Sanford also expressed concern about the lottery's $6.8 million advertising budget.

Passailaigue said the lottery must promote its products. However, he said the lottery has made efforts to reduce its advertising budget.

The governor suggested other means to make small cuts, such as recruiting volunteers rather than paying $60,000 for the salaries of people who host the evening drawings.

Overall, Sanford wants to see more of the lottery's gross proceeds go toward education. Of the $1.2 billion in gross sales, about 29 percent goes toward education.

State law requires at least 45 percent go toward prizes paid out. If the amount of prizes changes, that will have an impact on the total gross sales, Passailaigue said.